RESTON, Va. - In a surprising turn of events, Science Applications International Corporation (NASDAQ:SAIC) exceeded analyst expectations in the second quarter and boosted its full-year earnings guidance. The technology integrator showcased solid program performance and robust cash flow, leading to a positive outlook for investors.
SAIC reported adjusted earnings per share of $2.05 for the quarter ended August 2, surpassing estimates of $1.86. Revenue also saw a 2% year-over-year increase to $1.82 billion, slightly higher than the anticipated $1.8 billion.
CEO Toni Townes-Whitley expressed satisfaction with the company's performance, highlighting strong program execution and exceptional cash flow generation. The Defense and Intelligence segment saw a 2% revenue growth to $1.42 billion, while the Civilian segment experienced a similar increase to $403 million compared to the previous year.
With free cash flow reaching $241 million in Q2, a 67% increase from the previous year, SAIC also repurchased $201 million worth of shares during the quarter.
Looking forward, SAIC raised its fiscal 2025 adjusted EPS guidance to $8.10-$8.30, surpassing the previous outlook of $8.00-$8.20 and beating the $8.07 analyst consensus. The company reiterated its full-year revenue forecast of $7.35-$7.50 billion.
Townes-Whitley emphasized positive growth trends and an expanded pipeline of opportunities that are expected to drive growth into fiscal 2026. The company's total backlog stood at $22.9 billion at the end of Q2, with $4.2 billion of that amount funded.
Overall, SAIC's strong performance and optimistic outlook indicate a promising future for the company and its investors. With a focus on delivering value to shareholders and capitalizing on growth opportunities, SAIC is well-positioned for success in the coming years.
