SAIC (SAIC) Earnings Growth And 5% Margin Reinforce Bullish Profitability Narratives

Simply Wall St.03-17

Science Applications International (SAIC) has just posted fresh FY 2026 numbers, with third quarter revenue of US$1,866 million and basic EPS of US$1.70, alongside trailing 12 month revenue of US$7.4 ...

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Over recent quarters the company has seen revenue range from US$1,769 million to US$1,877 million and quarterly EPS move between US$1.43 and US$2.72. This gives investors a clearer view of how the current run rate feeds into those trailing figures. With trailing net...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"BLSX":"Tradr 2X Long BLSH Daily ETF","BLSG":"2倍做多BLSH ETF-Leverage Shares","BK4123":"调查和咨询服务","SAIC":"Science Applications Internation","BK4112":"金融交易所和数据"},"translate_title":"上汽集团(SAIC)盈利增长和5%的利润率强化了看涨的盈利叙事","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SAIC":1.98,"BLSX":0.6,"BLSG":0.6},"content_text":"Science Applications International (SAIC) has just posted fresh FY 2026 numbers, with third quarter revenue of US$1,866 million and basic EPS of US$1.70, alongside trailing 12 month revenue of US$7.4 billion and EPS of US$7.86. Over recent quarters the company has seen revenue range from US$1,769 million to US$1,877 million and quarterly EPS move between US$1.43 and US$2.72. This gives investors a clearer view of how the current run rate feeds into those trailing figures. With trailing net profit margin at 5% compared to 4.1% the year before, the latest results point to earnings power that hinges on maintaining these margins. See our full analysis for Science Applications International. With the headline numbers set, the next step is to see how this earnings print lines up with the prevailing stories around growth, quality and risk that investors typically associate with SAIC. See what the community is saying about Science Applications International NasdaqGS:SAIC Earnings & Revenue History as at Mar 2026 Advertisement22.5% earnings growth and a 5% margin on US$7.4b of sales  Over the last 12 months, SAIC generated about US$7.4b in revenue with net income of US$371 million, which works out to 22.5% earnings growth and a 5% net margin compared with 4.1% the prior year. Supporters with a bullish view point to this higher trailing margin and earnings growth as evidence the business is benefiting from higher margin, asset light work. However, the quarter to quarter EPS range of US$1.43 to US$2.72 shows profitability can still move around even as the trailing numbers look stronger.  Stronger recent profitability and higher margin work are exactly what bullish investors focus on after a year where SAIC converted a 5% net margin into US$371 million of earnings and 22.5% earnings growth. The quarterly EPS swings between US$1.43 and US$2.72 are a reminder that the path is not perfectly smooth for the bullish case. 🐂 Science Applications International Bull Case P/E of 11.3x vs peers at 16.1x and industry at 18.9x  SAIC trades on a trailing P/E of 11.3x compared with a peer average of 16.1x and a US Professional Services industry average of 18.9x. The current share price of US$93.05 also sits well below a DCF fair value of US$191.01 and an analyst consensus target of about US$116.22. Analysts with a balanced, consensus style view see this valuation gap alongside 22.5% trailing earnings growth and a 5% margin and argue the shares could re rate if those fundamentals hold. The same consensus also expects margins to move from 5.3% to 4.5% and earnings to trend toward US$344.8 million by 2028, which would need a higher future P/E of 15.7x to reach the US$116.22 target.  The combination of a 5% net margin and a below peer P/E supports the idea of room for multiple expansion if profitability stays around current levels. At the same time, the expectation of earnings easing back from US$399 million to US$344.8 million sets a higher bar for that re rating to happen, because investors would be paying more per dollar of earnings if the P/E moves to 15.7x.   Debt coverage flagged against 1.59% dividend yield  On the risk side, the balance sheet analysis highlights that debt is not well covered by operating cash flow. On the reward side, shareholders received a 1.59% dividend yield over the last 12 months from a business that earned US$371 million on about US$7.4b of revenue. Critics with a bearish tilt focus on this debt coverage issue and the risk that government contract shifts or budget pressures could affect cash generation. They contrast that with the data point that analysts still see earnings rising toward at least US$344.8 million to US$412.3 million by 2028, which would need disciplined cash conversion to support both debt service and dividends.  The warning that operating cash flow does not comfortably cover debt obligations gives weight to concerns about future financial flexibility, even after a period of 5% net margins. At the same time, the ongoing 1.59% dividend shows management is returning some of those earnings today, which bearish investors might see as competing with balance sheet strengthening if cash flows do not improve.   Bears often point to the flagged weakness in debt coverage as a core concern, especially when paired with government contract and budget risks. These results give you the raw numbers to weigh that cautious view against the earnings and dividend profile. 🐻 Science Applications International Bear Case Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Science Applications International on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. With mixed views around growth, valuation, debt and dividends, it helps to check the underlying data yourself and decide how it all stacks up. To see how the upside and downside compare in one place, take a look at the 4 key rewards and 1 important warning sign See What Else Is Out There For all the talk of margins and valuation, the flagged weakness around debt not being well covered by operating cash flow leaves financial resilience looking less secure. If that balance sheet concern makes you uneasy, it is worth comparing SAIC with companies screened for stronger financial footing using the solid balance sheet and fundamentals stocks screener (42 results) to hunt for ideas that better fit your comfort level on risk.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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