Science Applications International Corporation Remains Confident in Achieving Annual Goals Despite Decrease in Q1 Revenue and Decline in Share Prices – SAIC (NASDAQ:SAIC)

Science Applications International Corp (SAIC) reported a 9% decline in revenue year over year in the fiscal first quarter of 2025, bringing it to $1.847 billion. This figure slightly surpassed the analyst consensus estimate of $1.844 billion. Adjusted EPS of $1.92 was in line with expectations. The decrease in revenue was mainly attributed to the sale of the logistics and supply chain management business and contract completions. Adjusting for the impact of the divestiture of the Supply Chain Business, revenues actually saw a slight increase of 0.4%. The adjusted operating margin also declined by 30 bps to 8.6%, and adjusted EBITDA margin decreased by 30 bps to 9.0%.

SAIC generated $13 million in free cash flow for the quarter, down from $76 million a year ago, and held $49 million in cash and equivalents as of May 3. Net bookings for the quarter amounted to $2.6 billion, resulting in a book-to-bill ratio of 1.4. The estimated backlog at the end of the quarter was around $23.6 billion. The board of directors declared a cash dividend of $0.37 per share of the company’s common stock, payable on July 26 to stockholders of record on July 12.

SAIC CEO Toni Townes-Whitley expressed confidence in the company’s strategy and investments, stating that they are well-positioned to maximize long-term shareholder value. While early progress has been seen, returns from investments are expected to accelerate in FY26 and FY27. The company reiterated its revenue guidance of $7.35 billion – $7.50 billion for FY25, and adjusted EPS guidance of $8.00 – $8.20.

Over the last 12 months, the company’s stock has gained over 31%. Investors interested in gaining exposure to the stock can consider iShares Cybersecurity And Tech ETF IHAK and First Trust NASDAQ Cybersecurity ETF CIBR. As of the last check, SAIC shares were trading lower by 3.45% at $130.00 premarket.