SAIC Stock Forecast & Price Target

Science Applications Intl is benefiting from a clear operational inflection, with FQ2 revenue of $1.88 billion growing 6.3% year over year and organic growth of 5%, while adjusted EBITDA of $193 million, adjusted EPS of $2.38, and $131 million of free cash flow all exceeded expectations. Its Defense and Intelligence and Civilian segments both posted solid growth, and the rebound in on-contract growth to 9% suggests improving industry conditions are combining with better execution to offset contract delays and the RITS rollover. Management’s raised FY27 revenue, EBITDA, and EPS guidance, plus Project Orbit’s targeted $150 million in annual run-rate savings and strong RPO coverage, support a multi-year margin expansion and durable cash generation profile.

Science Applications Intl is viewed negatively because the Vanguard/Evolve recompete and the delayed RITS roll-off create meaningful execution risk around FY27 and especially FY28, when annual comp could pressure F1Q28 and F2Q28. The company may get a $65M-$70M revenue tailwind in F2Q from timing, but that benefit appears temporary and does not offset the expectation of flattish FY28 revenue growth versus Street +1.5%, reflecting weak organic momentum. Its less attractive contract portfolio, relatively high leverage, lower-margin profile, and heavy dependence on U.S. government spending, awards, and audits suggest it may continue to underperform Government Services peers.