SAIC Stock Surges on Strong Earnings Beat and Raised Full-Year Outlook

Shares of Science Applications International Corp. (SAIC) surged on Thursday after the government technology contractor posted second-quarter results that handily beat Wall Street estimates and raised its financial outlook for the full year.

The stock climbed 7.99% in pre-market trading and went on to hit a new 52-week high of $130.98 during the session, according to market data reported by Investing.com.

Earnings Beat Powers Rally

The Reston, Virginia-based company announced a strong performance for its second quarter of fiscal year 2027, exceeding analyst consensus on both key metrics.

• Adjusted Diluted EPS: $3.01, which was $0.70 above the consensus estimate of $2.31.
• Revenue: $1.88 billion, surpassing the $1.76 billion analysts had expected and marking a 6.3% increase year-over-year.

"I am proud of our team’s performance this quarter, delivering solid organic growth and double-digit margins as we continue to execute with discipline," stated CEO Jim Reagan in the company's report.

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Upgraded Outlook and Analyst Confidence

Fueling investor optimism, SAIC lifted its full-year guidance for fiscal 2027. The company now expects adjusted diluted earnings per share in a range of $10.65 to $10.75, a significant increase from its prior forecast of $9.90–$10.10 and well above the analyst consensus of $9.95.

Revenue guidance was also increased to a range of $7.20 billion to $7.30 billion. Following the positive report, analysts at Jefferies raised their price target on SAIC stock to $130 from $115, reflecting greater confidence in the company's earnings trajectory.

A Company-Specific Catalyst

The market's reaction appeared to be driven specifically by SAIC's strong results rather than a broader sector trend. Competing government IT contractors Leidos Holdings and Booz Allen Hamilton were reported to be trading only marginally higher, underscoring the company-specific nature of the rally.