SAIC's Q1 Revenue Up 2%, Analyst Boosts Price Target to $110

Truist analyst Tobey Sommer has increased SAIC's price target to $110, maintaining a Hold rating. The adjustment comes as part of an earnings outlook for Government Services companies. SAIC's revenue is expected to grow approximately 2% to $1.877 billion, with adjusted EBITDA at $157 million and adjusted diluted EPS at $1.92. The company's backlog is approximately $20 billion, and revenue guidance for FY26 is $7.6 billion to $7.75 billion.

Science Applications International Corporation (SAIC) has seen its price target increased to $110 by Tobey Sommer of Truist Securities, according to recent updates. This marks a 10% increase from the previous target of $100, reflecting a positive outlook on SAIC's financial performance and market position. Despite the upward revision, Truist maintains its "Hold" rating on the stock, indicating caution in the overall investment outlook.

The price target adjustment comes amidst an earnings outlook for Government Services companies. SAIC reported revenue growth of approximately 2% in the first quarter, reaching $1.877 billion. The company's adjusted EBITDA stood at $157 million, with an adjusted EBITDA margin of 8.4%. Adjusted diluted EPS was $1.92, flat year-over-year. SAIC's robust pipeline, with proposals totaling $7 billion submitted in the first quarter, is expected to reach $28 billion to $30 billion for the full year.

The company's backlog is approximately $20 billion, and revenue guidance for FY26 is projected to be between $7.6 billion and $7.75 billion, representing organic growth of approximately 2.5% at the midpoint. The adjusted EBITDA margin guidance for the full year is 9.4% to 9.6%, with adjusted diluted EPS guidance ranging from $9.10 to $9.30. Free cash flow guidance is set at $510 million to $530 million, and share repurchases are targeted at $350 million to $400 million annually.

While SAIC's civilian segment, which accounts for over 70% of total revenue, is well-supported by budget allocations, the company faces challenges such as procurement delays and award timelines moving to the right due to higher turnover rates among customers. Additionally, free cash flow was negative $44 million in the first quarter, impacted by the timing of receivables on two programs. The Army's budget outlook may also pose potential challenges for the company.

Wall Street analysts forecast an average target price of $135.78 for SAIC, with a high estimate of $155.00 and a low estimate of $110.00. This implies an average upside of 16.99% from the current price of $116.06. The consensus recommendation from 11 brokerage firms is a "Hold" status, with GuruFocus estimating a GF Value of $131.71 for SAIC in one year, suggesting an upside of 13.48% from the current price.

Investors in SAIC can consider this update as part of their broader market analysis. As of July 24, 2025, the price target adjustment showcases a positive outlook on SAIC's financial performance and market position.

References:
[1] https://www.gurufocus.com/news/3002062/saic-truist-securities-raises-price-target-to-110-saic-stock-news
[2] https://www.gurufocus.com/news/3001185/saic-price-target-increased-to-110-amid-earnings-preview-saic-stock-news