SAIC Jumps 8% After Q2 Earnings and Revenue Beat With Raised Full-Year Outlook

Science Applications International Corporation reported second-quarter fiscal 2027 results before the open on August 31, delivering a broad beat on both earnings and revenue and lifting its full-year guidance above analyst expectations. Revenue came in at $1.88 billion, exceeding the consensus estimate of $1.76 billion by roughly $120 million and representing approximately 6.3% total growth, or 5.3% on an organic basis. Non-GAAP diluted earnings per share of $3.01 topped the $2.31 estimate by $0.70, while GAAP diluted EPS stood at $2.38. Net income for the quarter was $102 million, with adjusted EBITDA of $193 million, equal to a 10.3% margin on revenues.

The company raised its full-year fiscal 2027 revenue outlook to a range of $7.2 billion to $7.3 billion, bracketing the prior consensus of $7.19 billion, and set adjusted EPS guidance of $10.65 to $10.75, well above the Street estimate of $9.95. Management attributed the strong quarter to broad-based growth across its markets and improved conversion of existing contract backlog into revenue.

Shares surged roughly 8% in premarket trading, making SAIC one of the standout movers on a morning when broader U.S. stock index futures were lower amid Middle East tensions. TD Cowen reiterated its rating on the stock following the report and maintained a price target of $125.