Science Applications International Corporation (NASDAQ:SAIC) Surpasses EPS Estimates

• SAIC reported an EPS of $3.63, significantly beating the estimated $2.25 and marking a substantial increase from the previous year.
• The company's revenue of $1.77 billion fell short of the estimated $1.86 billion, indicating a slight decline from the previous year.
• Despite strong EPS performance, SAIC's stock price experienced a 7% decline due to concerns over future revenue potential.

Science Applications International Corporation (NASDAQ:SAIC) is a prominent player in the IT services industry, providing a range of services to government and commercial clients. The company is known for its expertise in systems integration, engineering, and IT solutions. Despite its strong market presence, SAIC faces competition from other industry giants like Leidos and Booz Allen Hamilton.

On September 4, 2025, SAIC reported earnings per share (EPS) of $3.63, significantly surpassing the estimated $2.25. This impressive performance marks a substantial increase from the $2.05 per share reported in the same quarter last year, resulting in an earnings surprise of +61.33%. However, the company's revenue of $1.77 billion fell short of the estimated $1.86 billion, showing a slight decline from the $1.82 billion reported in the previous year.

Despite the strong EPS performance, SAIC's stock price experienced a 7% decline by noon ET. This drop occurred as investors expressed concerns over the company's bookings, which fell short of expectations. Bookings are crucial as they indicate future revenue potential, and the shortfall has led to worries about SAIC's future outlook, as highlighted by Fool.com.

SAIC's financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 14.46, reflecting the market's valuation of its earnings. The price-to-sales ratio stands at about 0.67, suggesting the stock price relative to its revenue. Additionally, the enterprise value to sales ratio is around 0.99, indicating the company's total valuation compared to its sales.

The company's financial leverage is highlighted by a debt-to-equity ratio of approximately 1.62. This ratio indicates the extent to which SAIC is financing its operations through debt. Furthermore, the current ratio of around 0.78 suggests the company's ability to cover its short-term liabilities with its short-term assets. Despite these challenges, SAIC's consistent performance in exceeding consensus EPS estimates in three of the last four quarters continues to draw attention in the industry.