Science Applications International Corporation (NASDAQ: $SAIC), a tech company that provides government services, and IT support released its Q4 fiscal 2025 results on Monday, March 17, 2025, before markets opened. SAIC shares soared following the positive results. Let us take a deep dive into them.
Science Applications International Corporation Releases Q4 Results
For the fourth quarter, Science Applications International Corporation reported revenue of $1.84 billion, a 5.8% YoY increase. It reported a net income of $98 million for an adjusted EPS of $2.57. The company topped both Q4 revenue and earnings estimates of $1.81 billion, and $2.08, respectively. Meanwhile, the Q4 adjusted EBITDA came in $177 million, representing 9.6% of revenue.
Total cash flow from operating activities for Q4 was $115 million, a $52 million YoY increase.
Full-Year Highlights
For the full year, Science Applications International Corporation reported revenue of $7.48 billion, a 3.1% YoY increase. Full-year net income came in at $362 million, with an adjusted EBITDA of $710 million, representing 9.5% of revenue. Meanwhile, the full-year adjusted EPS came in at $9.13.
Full-year total cash flow from operating activities came in at $94 million, a $98 million increase.
Capital Allocation
In Q4, SAIC spent $163 million in capital, comprising $130 million in share buybacks, $18 million in cash dividends, and $15 million in CapEx.
For the full year, SAIC deployed $638 million worth of capital, comprising $527 million in share buybacks, $75 million in dividends, and $36 million in CapEx.
SAIC declared a dividend of $0.37 for the fourth quarter, and plans to continue with dividend issuances in fiscal 2026.
Fiscal 2026 Forecast
For the full year fiscal 2026, SAIC expects revenue of $7.6 billion to $7.75 billion, beating estimates of $7.63 billion at the midpoint. It expects an adjusted EPS of $9.10 to $9.30, beating forecasts of $8.85 at the midpoint.
Backlog And Contracts Awarded
Q4 net booking stood at $1.3 billion, for a book to bill ratio of around 0.7. Full-year net booking came in at $6.6 billion, for a book to bill ratio of around 0.9. The company had a backlog of around $21.9 billion at the end of the year, with $3.4 billion of that funded.
Science Applications International Corporation Market Performance
Following the positive Q4 and full-year results, SAIC shares soared in premarket trading on March 17, 2025, to $114.80, a 9.93% increase as of 9:20 AM EDT. However, the stock has had a tough run recently, dipping 23.56% in the past six months and 27.06% in the past 12 months.
Friday’s closing price of $104.43 was below both its 50 and 200-day moving averages of $107.59 and $122.72, respectively.
Analysts advise caution for SAIC, giving it an overall hold rating. They forecast an average price of $126.00, which is a 20.65% upside based on Friday’s closing price. The analysts forecast a wide range of price targets for SAIC, with a high of $139.0, and a low of $120.
Is SAIC A Good Investment In 2025?
Science Applications International Corporation primarily operates in the defense, space, civilian, and intelligence markets. With the current Trump administration investing heavily in digital transformation, the future looks bright for the company. Its strong results, and upbeat outlook potentially position it as a great stock to add to your portfolio in 2025.
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