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Science Applications International SAIC delivered better-than-expected fourth-quarter fiscal 2025 results. The company reported non-GAAP earnings of $2.57 per share for the fiscal fourth quarter, surpassing the Zacks Consensus Estimate of $2 by 28.5%. Furthermore, the bottom line increased 79.7% year over year, driven by higher revenues and effective cost management.
Science Applications’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 14.62%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Science Applications' fiscal fourth-quarter revenues rose 5.8% year over year to $1.838 billion, which marginally surpassed the Zacks Consensus Estimate of $1.804 billion by 1.88%. The top-line growth was primarily driven by ramp up in volume on new and existing contracts, partially offset by contract completions.
Strong fiscal fourth-quarter performance, along with upbeat fiscal 2026 guidance boosted investor confidence, driving the share price up by 7% on Monday. While SAIC shares have plunged 11.7% over the past year, underperforming the Computers - IT Services industry’s decline of 5.4%, the recent performance could pave the way for a recovery.
Science Applications International Corporation Price, Consensus and EPS Surprise
Science Applications International Corporation price-consensus-eps-surprise-chart | Science Applications International Corporation Quote
SAIC’s Q4 in Detail
Segment-wise, revenues from Defense and Intelligence, which accounted for 74% of revenues, amounted to $1.36 billion and increased 0.6% year over year. Civilian revenues, which constitute 26% of revenues, totaled $478 million and rose 24.2% year over year.
Net bookings for the quarter were approximately $1.3 billion, which reflected a book-to-bill ratio of 0.7. The company’s trailing 12-month book-to-bill ratio was 0.9 at the end of the fiscal fourth quarter. SAIC’s estimated backlog at the end of the quarter was approximately $21.9 billion. Of the total backlog amount, approximately $3.4 billion was funded.
Selling, general and administrative (SG&A) expenses decreased 17.5% to $94 million. SG&A expenses, as a percentage of revenues, declined to 1.4% from 6.6% in the year-ago quarter.
SAIC’s Q4 Operating Details
Non-GAAP operating income increased year over year to $176 million from the year-ago quarter’s operating income of $124 million. The non-GAAP operating margin expanded 250 basis points (bps) year over year to 9.6%.
Adjusted EBITDA advanced 39.4% to $177 million. Adjusted EBITDA margin for the quarter was 9.6% compared with 7.3% for the prior-year quarter due to improved profitability across the company’s contract portfolio, lower incentive-based compensation expense, and lower stock-based compensation related to restructuring and executive transition.