Why SAIC (SAIC) Stock Is Up Today

Stock Story

Science Applications International

+15.88%

600104

+0.65%

What Happened?

Shares of government IT services provider Science Applications International Corporation jumped 16.6% in the afternoon session after the company reported third-quarter results that beat profit estimates and raised its full-year guidance. While revenue for the quarter was in line with Wall Street's expectations at $1.87 billion, it marked a 5.6% decrease year-over-year. However, investors focused on the company's strong profitability. SAIC posted adjusted earnings of $2.58 per share, significantly surpassing analyst estimates by over 20%. Adjusted EBITDA, a measure of core profitability, also came in 5% ahead of consensus at $185 million. Building on this strong performance, SAIC lifted its adjusted earnings per share forecast for the full year to a midpoint of $9.90.

The shares closed the day at $101.47, up 15.9% from previous close.

Is now the time to buy SAIC? Access our full analysis report here.

What Is The Market Telling Us

SAIC’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for SAIC and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock dropped 13% on the news that the company announced weak first quarter 2025 (fiscal 2026) results which missed analysts' EPS estimates. The underwhelming result was due to sluggish revenue growth, which rose just 2% year on year, driven largely by volume increases in existing and new contracts, but weighed down by the completion of older contracts.Looking ahead, the company reaffirmed its full-year guidance for adjusted EPS and EBITDA, but both fell short of Wall Street estimates. Management pointed to strong bookings with a 1.3 book-to-bill ratio and high-profile wins like the U.S. Army contract, but those longer-term prospects likely didn't sway investors focused on profitability. Overall, it was a weak quarter.

SAIC is down 8.5% since the beginning of the year, and at $102.61 per share, it is trading 17.2% below its 52-week high of $123.91 from December 2024. Investors who bought $1,000 worth of SAIC’s shares 5 years ago would now be looking at an investment worth $1,049.

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

SAIC (NASDAQ:SAIC) Posts Q3 CY2025 Sales In Line With Estimates

Stock Story

Science Applications International

+15.88%

600104

+0.65%

Government IT services provider Science Applications International Corporation met Wall Streets revenue expectations in Q3 CY2025, but sales fell by 5.6% year on year to $1.87 billion. The company’s outlook for the full year was close to analysts’ estimates with revenue guided to $7.3 billion at the midpoint. Its non-GAAP profit of $2.58 per share was 20.2% above analysts’ consensus estimates.

Is now the time to buy SAIC? Find out by accessing our full research report, it’s free for active Edge members.

SAIC (SAIC) Q3 CY2025 Highlights:

Revenue: $1.87 billion vs analyst estimates of $1.87 billion (5.6% year-on-year decline, in line)
Adjusted EPS: $2.58 vs analyst estimates of $2.15 (20.2% beat)
Adjusted EBITDA: $185 million vs analyst estimates of $176.2 million (9.9% margin, 5% beat)
The company slightly lifted its revenue guidance for the full year to $7.3 billion at the midpoint from $7.29 billion
Management raised its full-year Adjusted EPS guidance to $9.90 at the midpoint, a 4.2% increase
EBITDA guidance for the full year is $695 million at the midpoint, above analyst estimates of $683.1 million
Operating Margin: 6.9%, down from 8.1% in the same quarter last year
Free Cash Flow Margin: 7.2%, up from 0.5% in the same quarter last year
Backlog: $23.79 billion at quarter end
Market Capitalization: $4.03 billion

Company Overview

With over five decades of experience supporting national security missions, Science Applications International Corporation provides technical, engineering, and enterprise IT services primarily to U.S. government agencies and military branches.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.

With $7.35 billion in revenue over the past 12 months, SAIC is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because finding new avenues for growth becomes difficult when you already have a substantial market presence. For SAIC to boost its sales, it likely needs to adjust its prices, launch new offerings, or lean into foreign markets.

As you can see below, SAIC’s 1.3% annualized revenue growth over the last five years was sluggish. This shows it failed to generate demand in any major way and is a rough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. SAIC’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 2.1% annually.

This quarter, SAIC reported a rather uninspiring 5.6% year-on-year revenue decline to $1.87 billion of revenue, in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. Although this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average.

Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking. Go here for access to our full report.

Operating Margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D.

SAIC’s operating margin might fluctuated slightly over the last 12 months but has generally stayed the same, averaging 7.4% over the last five years. This profitability was paltry for a business services business and caused by its suboptimal cost structure.

Looking at the trend in its profitability, SAIC’s operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

SAIC Trailing 12-Month Operating Margin (GAAP)

This quarter, SAIC generated an operating margin profit margin of 6.9%, down 1.2 percentage points year on year. This reduction is quite minuscule and indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

SAIC’s EPS grew at a remarkable 11.5% compounded annual growth rate over the last five years, higher than its 1.3% annualized revenue growth. However, this alone doesn’t tell us much about its business quality because its operating margin didn’t improve.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For SAIC, its two-year annual EPS growth of 12.2% is similar to its five-year trend, implying strong and stable earnings power.

In Q3, SAIC reported adjusted EPS of $2.58, down from $2.61 in the same quarter last year. Despite falling year on year, this print easily cleared analysts’ estimates. Over the next 12 months, Wall Street expects SAIC’s full-year EPS of $10.70 to shrink by 17.6%.

Key Takeaways from SAIC’s Q3 Results

It was good to see SAIC beat analysts’ EBITDA and EPS expectations this quarter. We were also glad its full-year EPS guidance outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 4.8% to $91.75 immediately following the results.

SAIC had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.

Risk Warnings and Disclaimers

Add to Favorites

Chinese Automaker BYD's European Sales Continue to Rise

Dow Jones Newswires

By Nina Kienle

Chinese automaker BYD again logged higher new-car registrations in Europe last month, as it continues to expand in the continent amid pressure in its home market.

New-car registrations for BYD models, a reflection of sales, increased to 17,470 vehicles from 5,695 vehicles in October 2024, according to the European Automobile Manufacturers' Association, an industry body also known as ACEA.

The figure includes data from the European Union as well as the U.K., Iceland, Liechtenstein, Norway and Switzerland. In the EU alone, BYD registrations rose to 13,350 vehicles from 4,525 vehicles.

While China's largest automaker is continuing its streak of logging higher sales, absolute sales remain far below those of established domestic carmakers like Germany's Volkswagen or Stellantis, the owner of the Jeep and Dodge brands. Both companies respectively sold 308,508 and 157,350 vehicles in Europe last month, according to ACEA.

Meanwhile, registrations for Elon Musk's Tesla fell 48% in the EU last month, according to ACEA data, continuing the streak of disappointing monthly sales for the company this year. Tesla has been dealing with the fallout from Musk's involvement with the Trump administration that came to an end a few months ago.

In the year to date, battery-electric cars reached 16.4% of the EU market share, up from 13.2% in the same period of the prior year. In the first ten months of the year, battery-electric vehicle sales jumped 39% in Germany. Registrations of hybrid-electric cars increased 16%, while plug-in-hybrid models increased by 32%.

ACEA said EU car registrations increased 5.8% in October to 916,609 vehicles, up 7.8% in Germany and up 2.9% in France but down 0.5% in Italy.

Write to Nina Kienle at nina.kienle@wsj.com

Risk Warnings and Disclaimers

Add to Favorites

Chinese Automaker BYD's European Sales Continue to Rise

Dow Jones Newswires

By Nina Kienle

Chinese automaker BYD again logged higher new-car registrations in Europe last month, as it continues to expand in the continent amid pressure in its home market.

The figure includes data from the European Union as well as the U.K., Iceland, Liechtenstein, Norway and Switzerland. In the EU alone, BYD registrations rose to 13,350 vehicles from 4,525 vehicles.

ACEA said EU car registrations increased 5.8% in October to 916,609 vehicles, up 7.8% in Germany and up 2.9% in France but down 0.5% in Italy.

Write to Nina Kienle at nina.kienle@wsj.com

Risk Warnings and Disclaimers

Add to Favorites

Shanghai Closing Stock Prices

Dow Jones Newswires

                                Close      Prior     Change   % Change 
                                -----      -----     ------   -------- 
 Air China A                     8.73       8.73      -0.06      -0.68 
 Anhui Conch Cement A           23.71      23.71      +0.12      +0.51 
 Bank of China                   5.68       5.68      +0.02      +0.35 
 Baoshan Iron & Steel A          7.64       7.64      +0.03      +0.39 
 Bright Dairy & Food A           8.72       8.72      +0.19      +2.23 
 China Eastern Airlines A        5.29       5.29      +0.03      +0.57 
 China Merchants Bank           42.96      42.96      +0.24      +0.56 
 China Minsheng Banking A        4.04       4.04       unch       unch 
 Chn Petro & Chem Sinopec        5.67       5.67      +0.01      +0.18 
 China Southern Airlines         7.29       7.29      +0.05      +0.69 
 China United Ntwk Comms         5.50       5.50      -0.03      -0.54 
 China Yangtze Power A          28.62      28.62      +0.09      +0.32 
 Chongqing Brewery A            54.35      54.35      +0.35      +0.65 
 CITIC Securities A             29.06      29.06      -0.24      -0.82 
 COSCO SHIPPING Engy A          12.41      12.41       unch       unch 
 COSCO SHIPPING Special A        7.49       7.49      +0.08      +1.08 
 Daqin Railway                   5.73       5.73      -0.01      -0.17 
 Dongfeng Automobile A           7.85       7.85      +0.08      +1.03 
 Fujian Yanjing Huiquan         12.06      12.06      +0.09      +0.75 
 Haier Smart Home A             26.88      26.88      -0.22      -0.81 
 Hainan Airlines Hldg A          1.83       1.83      -0.01      -0.54 
 Hisense Visual Tech A          25.50      25.50      +0.02      +0.08 
 Hua Xia Bank A                  6.99       6.99       unch       unch 
 Huadian Power Intl              5.47       5.47      -0.07      -1.26 
 Huaneng Pwr Intl                8.19       8.19      -0.08      -0.97 
 INESA Intelligent Tech A       19.19      19.19      -0.08      -0.42 
 Jiangsu Expressway A           13.81      13.81      -0.09      -0.65 
 Jiangxi Copper A               39.27      39.27      -0.98      -2.43 
 Lucky Film A                    7.78       7.78      +0.06      +0.78 
 Maanshan Iron & Steel A         4.37       4.37      +0.34      +8.44 
 Nanjing Iron & Steel A          5.49       5.49      +0.01      +0.18 
 SAIC Motor A                   15.90      15.90      -0.18      -1.12 
 Shandong Gold-Mining A         36.10      36.10      -0.31      -0.85 
 Shanghai Bailian Group A        9.26       9.26      +0.09      +0.98 
 Shanghai Pudong Dev Bank       11.67      11.67      -0.02      -0.17 
 Shanghai Xinhua Media A         6.89       6.89      -0.04      -0.58 
 Shenyang Jinbei Auto A          5.00       5.00      +0.05      +1.01 
 Sichuan Changhong Elec A       10.04      10.04      -0.11      -1.08 
 SINOPEC Oilfield Svc A          2.35       2.35      +0.02      +0.86 
 SINOPEC Shanghai PetroChm       2.83       2.83      +0.01      +0.35 
 Tsingtao Brewery A             66.16      66.16       unch       unch 
 Yankuang Energy Group A        15.16      15.16      -0.57      -3.62 
 Zhongjin Gold A                21.41      21.41      -0.06      -0.28 
 
Source: FactSet

Risk Warnings and Disclaimers

Add to Favorites

Shanghai Closing Stock Prices

Dow Jones Newswires

                                Close      Prior     Change   % Change 
                                -----      -----     ------   -------- 
 Air China A                     8.30       8.30      -0.01      -0.12 
 Anhui Conch Cement A           23.32      23.32      +0.31      +1.35 
 Bank of China                   5.64       5.64      -0.02      -0.35 
 Baoshan Iron & Steel A          7.65       7.65      -0.09      -1.16 
 Bright Dairy & Food A           8.37       8.37       unch       unch 
 China Eastern Airlines A        4.90       4.90      -0.06      -1.21 
 China Merchants Bank           42.51      42.51      +0.17      +0.40 
 China Minsheng Banking A        4.03       4.03       unch       unch 
 Chn Petro & Chem Sinopec        5.61       5.61      +0.06      +1.08 
 China Southern Airlines         6.98       6.98      -0.02      -0.29 
 China United Ntwk Comms         5.51       5.51      +0.04      +0.73 
 China Yangtze Power A          28.52      28.52      +0.02      +0.07 
 Chongqing Brewery A            53.06      53.06      -0.16      -0.30 
 CITIC Securities A             29.00      29.00      -0.19      -0.65 
 COSCO SHIPPING Engy A          12.68      12.68      +0.17      +1.36 
 COSCO SHIPPING Special A        7.32       7.32      +0.11      +1.53 
 Daqin Railway                   5.74       5.74       unch       unch 
 Dongfeng Automobile A           7.82       7.82      -0.03      -0.38 
 Fujian Yanjing Huiquan         11.65      11.65      -0.03      -0.26 
 Haier Smart Home A             26.60      26.60      -0.09      -0.34 
 Hainan Airlines Hldg A          1.83       1.83      +0.03      +1.67 
 Hisense Visual Tech A          24.15      24.15      -0.23      -0.94 
 Hua Xia Bank A                  6.94       6.94       unch       unch 
 Huadian Power Intl              5.56       5.56      -0.03      -0.54 
 Huaneng Pwr Intl                8.25       8.25      -0.02      -0.24 
 INESA Intelligent Tech A       19.25      19.25      -0.15      -0.77 
 Jiangsu Expressway A           13.77      13.77      -0.09      -0.65 
 Jiangxi Copper A               39.87      39.87      -0.08      -0.20 
 Lucky Film A                    7.70       7.70      +0.07      +0.92 
 Maanshan Iron & Steel A         4.20       4.20      +0.10      +2.44 
 Nanjing Iron & Steel A          5.57       5.57      -0.05      -0.89 
 SAIC Motor A                   15.97      15.97      +0.09      +0.57 
 Shandong Gold-Mining A         35.21      35.21      +0.03      +0.09 
 Shanghai Bailian Group A        8.95       8.95      +0.03      +0.34 
 Shanghai Pudong Dev Bank       11.70      11.70      +0.04      +0.34 
 Shanghai Xinhua Media A         6.88       6.88      -0.05      -0.72 
 Shenyang Jinbei Auto A          4.90       4.90      +0.03      +0.62 
 Sichuan Changhong Elec A       10.07      10.07      -0.07      -0.69 
 SINOPEC Oilfield Svc A          2.31       2.31      -0.01      -0.43 
 SINOPEC Shanghai PetroChm       2.80       2.80      +0.04      +1.45 
 Tsingtao Brewery A             64.93      64.93      -0.22      -0.34 
 Yankuang Energy Group A        15.44      15.44      -0.10      -0.64 
 Zhongjin Gold A                21.08      21.08      +0.01      +0.05 
 
Source: FactSet

Risk Warnings and Disclaimers

Add to Favorites

SAIC Motor Corporation: Q3 net profit jumped 644.88% year-over-year on strong sales and cost control

Quartr

600104

+0.65%

Revenue for the first nine months rose 8.95% year-over-year to ¥468.99 billion, with net profit up 17.28% to ¥8.10 billion. Q3 net profit surged 644.88% year-over-year, driven by market expansion and cost control. Non-recurring gains totaled ¥978 million.

Original document: SAIC Motor Corporation Limited Class A [600104] Interim report — Oct. 31 2025

Disclaimer

This is an AI-generated summary and may contain inaccuracies. Please verify any important information with the original source.

Risk Warnings and Disclaimers

Add to Favorites