J.P Morgan Says Eu Media Ai Opportunities Underestimated, Fear Overblown

Government IT services provider Science Applications International Corporation will be announcing earnings results this Thursday before market hours. Here’s what you need to know.

SAIC missed analysts’ revenue expectations by 5.1% last quarter, reporting revenues of $1.77 billion, down 2.7% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations significantly.

Is SAIC a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting SAIC’s revenue to decline 5.5% year on year to $1.87 billion, a reversal from the 4.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.14 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SAIC has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.7% on average.

Looking at SAIC’s peers in the government & technical consulting segment, some have already reported their Q3 results, giving us a hint as to what we can expect. UL Solutions delivered year-on-year revenue growth of 7.1%, beating analysts’ expectations by 1.5%, and Jacobs Solutions reported revenues up 6.6%, topping estimates by 0.7%. UL Solutions traded up 9.1% following the results while Jacobs Solutions was down 11.2%.

Read our full analysis of UL Solutions’s results here and Jacobs Solutions’s results here.

Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the government & technical consulting stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.1% on average over the last month. SAIC is down 3.8% during the same time and is heading into earnings with an average analyst price target of $115.63 (compared to the current share price of $88.15).

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