SAIC Stock Surges to 301st Most Traded Amid 168.93% Volume Spike Despite 13.26% Price Drop

On June 2, 2025, Science Applications International Corporation (SAIC) experienced a significant surge in trading volume, with a turnover of $314 million, marking a 168.93% increase from the previous day. This surge positioned SAIC as the 301st most traded stock on the day. However, the company's stock price declined by 13.26%, reflecting investor concerns over its recent financial performance and market outlook.

SAIC reported a book-to-bill ratio of 1.3 for the first quarter of fiscal year 2026, driven by strong program ramp-ups and strategic contract wins with both defense and civilian agencies. The company's net bookings reached $2.4 billion, with notable wins including a five-year Army system software lifecycle recompete and an eight-year IT services program for the Pension Benefit Guarantee Corporation. Despite a negative free cash flow of $44 million in Q1 FY2026, management confirmed catch-up on collections post-quarter and reiterated full-year expectations.

SAIC's revenue for the first quarter was $1.877 billion, representing a 2% growth year over year. The company's adjusted EBITDA was $157 million, with a margin of 8.4%, impacted by investment seasonality and a fixed-price program cost overrun in the space segment. The adjusted diluted EPS was $1.92, flat year over year, as a lower share count offset a higher tax rate and lower adjusted EBITDA. The company's backlog of pending awards remained steady at approximately $20 billion, with a trailing twelve-month book-to-bill targeted at 1.2 in upcoming quarters.

SAIC's guidance for fiscal year 2026 revenue was reaffirmed at $7.6 billion to $7.75 billion, reflecting about 2.5% organic growth at the midpoint and sequential growth acceleration in the second half. The company's adjusted EBITDA margin guidance was maintained at 9.4% to 9.6%, with management expecting margin normalization as investment timing and space program cost overruns resolve. The company's full-year free cash flow guidance was set at $510 million to $530 million, with an extra payroll cycle in Q1 and Q3 FY2026 expected to create approximately $125 million outflow in each quarter.

SAIC's CEO, Toni Townes-Whitley, expressed confidence in the company's submission pipeline and win rate, stating that the company has a "submission pipe pending award pipeline and win rate applied to drive the growth that we've been communicating to The Street and the guidance that we've offered." The company's strategic positioning towards mission and enterprise IT aligns with administration and Department of Defense technology adoption priorities, positioning SAIC for sustained profitable growth in the coming quarters.