Science Applications Q4 Earnings Crush Estimates Helped By New Contract Volume, Stock Gains

Science Applications International Corp (NASDAQ:SAIC) shares are trading higher in premarket on Monday after the fourth-quarter FY25 earnings.

The company reported fourth-quarter sales growth of 6% year-on-year to $1.84 billion, beating the analyst consensus estimate of $1.81 billion.

Adjusted EPS of $2.57 beat the consensus estimate of $2.08.

The operating income for the quarter jumped 75% to $138 million and the operating margin expanded by 300 basis points to 7.5%.

Adjusted EBITDA increased 39% to $177 million with an adjusted EBITDA margin of 9.6%, a 230 basis points expansion.

Also Read: AstraZeneca Seals Deal For EsoBiotec To Advance Cell Therapy: Details

Net bookings for the quarter were approximately $1.3 billion, which reflects a book-to-bill ratio of approximately 0.7.  The operating cash flow for the quarter totaled $115 million, with transaction-adjusted free cash flow of $236 million.

SAIC’s estimated backlog at the end of fiscal year 2025 was approximately $21.9 billion of which $3.4 billion was funded. The company held $64 million in cash and equivalents as of January 31, 2025.

“Subsequent to quarter close, we received a $1.8 billion award for our largest recompete win in recent years, the System Software Lifecycle Engineering program. This important win along with a backlog of submitted bids valued at approximately $20 billion reflect the momentum we are building inside the company,” said CEO Toni Townes-Whitley.

Outlook: Science Applications revised the FY26 revenue outlook from $7.55 billion – $7.75 billion to $7.60 billion – $7.75 billion versus an estimate of $7.644 billion.

The company also raised the FY26 adjusted EPS outlook from $8.90 – $9.10 to $9.10 – $9.30 against an estimate of $9.07.

Price Action: SAIC shares traded higher by 9.16% at $114.00 in premarket at last check Monday.

Read Next:

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.