SAIC Stock Surges Past Consensus on Four Earnings Beats
SAIC shares rallied to $134.66 on four consecutive earnings beats with surprises between 20.0% and 41.7%, breaking above the analyst consensus price target of $132.70. The company's $2.7 billion debt
SAIC Shares Top Analyst Target on Fresh Contract Wins
NEW YORK, October 11 —
Science Applications International Corporation (SAIC) has crossed above its own analyst consensus price target of $132.70, propelled by four consecutive quarterly earnings beats. The same momentum that repriced the shares also arrived alongside a new material debt obligation disclosed in August, on a balance sheet already running roughly 20:1 debt to cash.
- Shares at $134.66, up 3.8%; four consecutive EPS beats with surprises from 20.0% to 41.7%; forward P/E of 11.7x.
- $2.70 billion in debt against $130 million cash; new material debt financing disclosed August 19, 2026.
- Director C. David Cush bought 1,000 shares at $132.50 on September 22, at roughly the analyst consensus price target.
Four Beats, Zero Upgrades
Science Applications International Corporation serves all six U.S. military branches, NASA, the Department of Homeland Security, and the Intelligence Community through two segments: Defense and Intelligence, and Civilian. Its portfolio spans IT modernization, digital engineering, AI, cloud, and cybersecurity. Four consecutive EPS beats, with surprises from 20.0% to 41.7%, have driven a re-rating that analysts have not yet formalized. Trailing twelve-month revenue grew 6.3% to $7.40 billion, and free cash flow reached $505 million. At 11.7x forward earnings, a DCF calculator frames the leverage-adjusted valuation, but with shares above consensus, further upside depends on the beat streak sustaining.
The Balance Sheet That Rides Shotgun
The beats come with structural strings attached. SAIC carries $2.70 billion in total debt against $130 million in cash, and an 8-K filed August 19, 2026 disclosed a new material debt obligation entered around August 14, adding to a leverage position already stretched. Operating cash flow of $660 million keeps debt service manageable, and a gross margin of 12.7% reflects the thin-spread reality of competing for federal IT volume. GuruFocus has independently flagged seven warning signs. With 90.6% institutional ownership, the float has little room for incremental accumulation to sustain a price above consensus.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| SAIC | $5.6B | 11.7x | +39.8% |
| LDOS | $15.3B | 9.6x | -34.6% |
| CACI | $13.5B | 16.2x | +20.2% |
| BAH | $8.9B | 11.0x | -23.2% |
| SNX | $21.8B | 11.3x | +77.4% |
| GWRE | $13.7B | 31.3x | -31.1% |
The Insider Buy That Isn't a Bargain Hunt
Director C. David Cush's open-market purchase of 1,000 SAIC shares at $132.50 on September 22, essentially the analyst consensus price target, signals directional confidence rather than bargain-hunting. SAIC has since won fresh U.S. Customs and Border Protection work and acquired the developer of an NSA-approved security product with more than a decade on the agency's approved list. The thesis stays neutral: the beat streak is the primary support for a stock trading above consensus, and a miss at the next quarterly print removes it. Run the free Science Applications International Corporation deep-dive → to pressure-test the leverage picture before that print arrives.
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Frequently Asked Questions
Why did SAIC shares rally above analyst consensus?
SAIC recorded four consecutive quarterly EPS beats with surprises ranging from 20.0% to 41.7%, pushing shares to $134.66 above the analyst consensus price target of $132.70. At 11.7x forward earnings, the re-rating reflects the momentum of consistent outperformance.
What is SAIC's debt situation?
SAIC carries $2.70 billion in total debt against $130 million in cash, with a new material debt obligation disclosed in an August 19, 2026 filing. Operating cash flow of $660 million keeps debt service manageable.
Have analysts upgraded SAIC despite the earnings beats?
No. Despite four consecutive earnings beats, analysts have not issued any rating upgrades. Director C. David Cush's purchase of 1,000 shares at $132.50 on September 22 signals directional confidence rather than bargain-hunting.
What business does SAIC operate?
SAIC serves all six U.S. military branches, NASA, the Department of Homeland Security, and the Intelligence Community through two segments: Defense and Intelligence, and Civilian. Services include IT modernization, digital engineering, AI, cloud, and cybersecurity.
What recent contract wins has SAIC announced?
SAIC won fresh U.S. Customs and Border Protection work and acquired the developer of an NSA-approved security product with more than a decade on the agency's approved list.
SAIC shares have surged 3.8% to $134.66, crossing above the analyst consensus price target of $132.70 following four consecutive earnings beats and a string of fresh contract and acquisition news. The stock has priced in momentum that analysts have not yet upgraded to match, while GuruFocus has flagged seven warning signs and the balance sheet shows $2.70 billion in debt against just $130 million in cash.