What Happened?
Shares of government IT services provider Science Applications International Corporation (NASDAQ:SAIC) jumped 5.5% in the afternoon session after the company reported second-quarter CY2026 financial results that exceeded Wall Street's expectations for sales, adjusted EBITDA and earnings per share.
According to a company press release, SAIC reported revenue of $1.88 billion for the quarter, representing 6.3% overall growth year over year. The company posted adjusted diluted earnings per share of $3.01, while adjusted EBITDA reached $193 million. Free cash flow totaled $131 million. Following the strong quarterly execution, SAIC raised its full-year CY2026 guidance across revenue, adjusted EBITDA, and adjusted diluted earnings per share.
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What Is The Market Telling Us
SAIC’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 16.6% on the news that the company reported third-quarter results that beat profit estimates and raised its full-year guidance. While revenue for the quarter was in line with Wall Street's expectations at $1.87 billion, it marked a 5.6% decrease year-over-year. However, investors focused on the company's strong profitability.
SAIC posted adjusted earnings of $2.58 per share, significantly surpassing analyst estimates by over 20%. Adjusted EBITDA, a measure of core profitability, also came in 5% ahead of consensus at $185 million. Building on this strong performance, SAIC lifted its adjusted earnings per share forecast for the full year to a midpoint of $9.90.
SAIC is up 31.2% since the beginning of the year, and at $132.75 per share, it has set a new 52-week high. Investors who bought $1,000 worth of SAIC’s shares 5 years ago would now be looking at an investment worth $1,576.
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