Overview

• US mission integrator's fiscal Q1 revenue grew 2%, beating analyst expectations

• Adjusted EPS for fiscal Q1 beat consensus, driven by improved profitability and investment gains

• Company raised fiscal 2027 guidance for adjusted EBITDA, margin, and adjusted EPS

Outlook

• Company raises FY27 adjusted EBITDA guidance to $720 mln-$730 mln from $705 mln-$715 mln

• SAIC lifts FY27 adjusted diluted EPS outlook to $9.90-$10.10 from $9.50-$9.70

• Company maintains FY27 revenue guidance at $7.0 bln-$7.2 bln and free cash flow above $600 mln

Result Drivers

• SILVEREDGE ACQUISITION - Revenue growth was primarily due to the SilverEdge Government Solutions acquisition and increased volume on existing and new contracts, partially offset by contract completions

• IMPROVED PROFITABILITY - Higher operating and adjusted EBITDA margins resulted from improved profitability across the contract portfolio and a $12 mln gain from the sale of an investment, as well as lower selling, general and administrative expenses

• WORKING CAPITAL CHANGES - Improved cash flow was mainly due to timing of vendor payments, lower incentive-based compensation payments, and other changes in working capital

Company press release: ID:nGNX9ptQQ7

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$1.91 bln	$1.82 bln (9 Analysts)
Q1 Adjusted EPS	Beat	$3.23	$2.28 (8 Analysts)
Q1 EPS		$2.61
Q1 Net Income		$115 mln
Q1 Adjusted EBITDA	Beat	$222 mln	$173.94 mln (7 Analysts)
Q1 Adjusted Operating Income	Beat	$221 mln	$147.13 mln (9 Analysts)
Q1 Operating Income		$179 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy."

• Wall Street's median 12-month price target for Science Applications International Corp is $113.00, about 8.4% above its May 29 closing price of $104.20

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

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