Science Applications Stock Plunges 13% as Q1 Earnings Miss Estimates
Science Applications International Corporation price-consensus-eps-surprise-chart | Science Applications International Corporation Quote
Segment-wise, revenues from Defence and Intelligence, which accounted for 76.3% of revenues, amounted to $1.43 billion and decreased 0.2% year over year. Civilian revenues, which constitute 23.7% of revenues, totaled $444 million and rose 8% year over year.Net bookings for the quarter were approximately $2.4 billion, which reflected a book-to-bill ratio of 1.3. The company's trailing 12-month book-to-bill ratio was 0.8 at the end of the fiscal first quarter. SAIC's estimated backlog at the end of the quarter was approximately $22.3 billion. Of the total backlog amount, approximately $3.3 billion was funded.Selling, general and administrative (SG&A) expenses decreased 4.7% to $89 million. SG&A expenses, as a percentage of revenues, increased to 4.7% from 4.6% in the year-ago quarter.Non-GAAP operating income decreased year over year to $158 million from the year-ago quarter's operating income of $165 million. The non-GAAP operating margin contracted 50 basis points (bps) year over year to 8.4%. Adjusted EBITDA declined 5.42% to $157 million. Adjusted EBITDA margin for the quarter was 8.4% compared with 9% for the prior-year quarter. Margin performance was impacted by the typical seasonality of investments, including healthy submit volumes and higher costs on a fixed price program in the space business.
Science Applications ended the fiscal first quarter with cash and cash equivalents of $47 million, down from the previous quarter's $56 million.As of May 2, 2025, Science Applications' long-term debt (net of the current portion) was $1.876 billion compared with $1.907 billion as of Jan. 31, 2025.The company generated operating and used free cash flows of $100 million and $44 million, respectively, in the fiscal first quarter.During the fiscal first quarter, Science Applications repurchased shares worth $125 million and paid $19 million in dividends.
Science Applications reaffirms its fiscal 2026 revenues in the range of $7.60-$7.75 billion and adjusted earnings in the $9.10-$9.30 band. The Zacks Consensus Estimate for fiscal 2026 revenues and non-GAAP earnings is pegged at $7.67 billion and $9.19 per share, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The company projects its adjusted EBITDA in the band of $715-$735 million and the adjusted EBITDA margin to be approximately 9.4-9.6%. SAIC expects its free cash flow to be in the band of $510-$530 million.
Currently, SAIC carries a Zacks Rank #3 (Hold).Paylocity Holding PCTY, StoneCo STNE and Trivago TRVG are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector.PCTY, STNE and TRVG sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today's Zacks #1 Rank stocks here.PCTY shares have declined 4.5% year to date. The Zacks Consensus Estimate for PCTY's full-year 2025 earnings is pegged at $7.01 per share, up by 5.4% over the past 30 days, indicating an increase of 6.7% from the year-ago quarter's reported figure.STNE shares have surged 77.4% year to date. The Zacks Consensus Estimate for STNE's full-year 2025 earnings is pegged at $1.43 per share, up by 3.62% over the past 30 days, indicating an increase of 5.93% from the year-ago quarter's reported figure.TRVG shares have surged 95% year to date. The Zacks Consensus Estimate for TRVG's full-year 2025 earnings per share is pegged at 10 cents, unchanged over the past 30 days, indicating a rise of 11.11% from the year-ago quarter's reported figure.
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