Why SAIC Stock Is Up Today

Source The Motley Fool

Defense IT specialist Science Applications International (NASDAQ: SAIC) delivered better-than-expected earnings, easing concerns about pullbacks as part of the government's efficiency push. Investors applauded the results, sending SAIC shares up 13% as of 10 a.m. ET.

Strong margin performance

SAIC is one of several defense contractors focused on providing technical services to various military and civil government agencies. The company earned $2.57 per share in its fiscal fourth quarter ending Jan. 31 on revenue of $1.83 billion, topping Wall Street's $2.09 per share on revenue of $1.81 billion consensus estimate.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Revenue was up 6% year over year, but net income jumped by 151%, fueled by a 250-basis point improvement in operating margin. The company also raised its guidance for the new fiscal year by $0.20 per share on the high and low end to between $9.10 and $9.30 per share.

After the quarter closed, SAIC received a $1.8 billion award. CEO Toni Townes-Whitley said that "this important win, along with a backlog of submitted bids valued at approximately $20 billion, reflect the momentum we are building inside the company."

Is SAIC stock a buy?

The quarter was strong, but perhaps the most important news came during the post-earnings call, when management said they have seen only "nominal" program cancellations from the newly formed Department of Government Efficiency (DOGE). Investors are nervous about the impact DOGE will have on these contractors.

There are still some reasons for concern. SAIC's new awards and funded orders relative to sales were weak, in part due to customer uncertainty. But SAIC, if nothing else, provided evidence that the business is not falling apart in the new operating environment. For long term-focused investors who can handle the potential for uncertainty up ahead, SAIC deserves a place on the watch list.

Should you invest $1,000 in Science Applications International right now?

Before you buy stock in Science Applications International, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Science Applications International wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $745,726!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of March 17, 2025

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Will the Fed Rescue the Plunging U.S. Stocks? Can Powell Act—or Even Try—at the March Meeting?TradingKey – The early days of Trump’s return to the White House have failed to deliver the "Make America Great Again" (MAGA) rally investors hoped for, instead pushing the S&P 500 into correction ter
Author  TradingKey
7 hours ago
TradingKey – The early days of Trump’s return to the White House have failed to deliver the "Make America Great Again" (MAGA) rally investors hoped for, instead pushing the S&P 500 into correction ter
placeholder
[IN-DEPTH ANALYSIS] Trump Policies: Market Overreacted, Remain Bullish on StocksExecutive SummaryThere’s no doubt that Trump’s high tariffs and retaliatory measures from trade partners alone could dampen the upward momentum of U.S. and European stock markets. However, Trump’s pot
Author  TradingKey
8 hours ago
Executive SummaryThere’s no doubt that Trump’s high tariffs and retaliatory measures from trade partners alone could dampen the upward momentum of U.S. and European stock markets. However, Trump’s pot
placeholder
NZD/USD hits three-week high near 0.5775; seems poised to climb further on bearish USDThe NZD/USD pair gains positive traction for the second straight day on Monday and climbs to a three-week high, around the 0.5775 region during the first half of the European session.
Author  FXStreet
8 hours ago
The NZD/USD pair gains positive traction for the second straight day on Monday and climbs to a three-week high, around the 0.5775 region during the first half of the European session.
placeholder
EUR/USD wobbles as Fed’s policy takes center stageEUR/USD trades in a tight range below the key level of 1.0900 in European trading hours on Monday.
Author  FXStreet
9 hours ago
EUR/USD trades in a tight range below the key level of 1.0900 in European trading hours on Monday.
placeholder
This week, Fed’s Powell must talk up growth while keeping rate cuts on the tableJerome Powell is stepping into a tough spot this week. He has to assure investors that the economy is strong while making it clear that the Federal Reserve is ready to cut interest rates if things start going south. The timing is brutal. Stocks have been unstable, bond yields are down, and the White House […]
Author  NewsBTC
9 hours ago
Jerome Powell is stepping into a tough spot this week. He has to assure investors that the economy is strong while making it clear that the Federal Reserve is ready to cut interest rates if things start going south. The timing is brutal. Stocks have been unstable, bond yields are down, and the White House […]
goTop
quote