Science Applications International (SAIC) Questions remain in pace of forward growth

Equity Research 7 September 2026 | 9:23PM EDT

Science Applications International (SAIC) Questions remain in pace of forward growth; Sell

SAIC 12m Price Target: $103.00 Price: $126.75 Downside: 18.7% SELL Noah Poponak, CFA | Our view on the stock post F2Q27 earnings Goldman Sachs & Co. LLC

SAIC F2Q27 revenue, adjusted EBITDA, and EPS were ahead of Connor Dessert | FactSet consensus, while FCF was below. The company raised Goldman Sachs & Co. LLC

full-year guidance for revenue (~2% at midpoint), adjusted EBITDA Nizar Mesani | (~4% at midpoint), and adjusted EPS (~7% at midpoint), while Goldman Sachs India SPL

reiterating FCF. While the quarter was improved versus recent reporting periods, updated guidance implies revenue down and Key Data _____________________________________ margins lower in the second half of the fiscal year. We still see Market cap: $5.8bn Enterprise value: $7.9bn headwinds from the pace of demand in the company’s key customer 3m ADTV: $60.0mn United States verticals, and from the competitive landscape. We are Sell rated on Americas Aerospace & Defense M&A Rank: 2 the stock. GS Forecast __________________________________ 1/26 1/27E 1/28E 1/29E

Key elements of the quarter Revenue ($ mn) New 7,262.0 7,334.0 7,303.8 7,303.8 Revenue ($ mn) Old 7,262.0 7,218.3 7,135.6 6,992.9 F2Q27 revenue of $1.88bn was ahead of consensus of $1.76bn. EBITDA ($ mn)

Adjusted EBITDA margin of 10.3% was 30bps ahead of our model. EBIT ($ mn) EPS ($) New Free cash flow was $131mn, below consensus at $208mn and our EPS ($) Old P/E (X) $172mn estimate. SAIC updated FY27 guidance including revenue of Dividend yield (%) 1.4 1.2 1.2 1.2 $7.20-$7.30bn ($7.00-$7.20bn prior; vs consensus of $7.19bn), Net debt/EBITDA (X) 3.3 2.9 2.8 2.7

organic revenue growth of (2)-(0)% ((4)-(2)% prior), adjusted 7/26 10/26E 1/27E 4/27E EBITDA of $750-$755mn ($720-$730mn prior, vs consensus of EPS ($)

$741mn), adjusted EBITDA margin of 10.3-10.5% (10.1-10.3% GS Factor Profile ______________________________ Growth prior), adjusted EPS of $10.65-$10.75 ($9.90-$10.10 prior, vs consensus of $10.18), and FCF of >$600mn (reiterated; vs consensus Financial Returns

Percentile 20th 40th 60th 80th 100th

SAIC relative to Americas Coverage SAIC relative to Americas Aerospace & Defense

Source: Company data, Goldman Sachs Research estimates. See disclosures for details.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Science Applications International (SAIC)

Science Applications International Balance Sheet ($ mn) _______________________________________ SELL (SAIC) Cash & cash equivalents 1/26 182.0 1/27E 304.4 1/28E 349.7 1/29E 416.0 Rating since Jun 8, 2021 Accounts receivable Inventory Ratios & Valuation __________________________________________ Other current assets -- -- -- -- 1/26 1/27E 1/28E 1/29E Total current assets 1,179.0 1,364.2 1,418.9 1,518.2 P/E (X) Net PP&E EV/EBITDA (X) Net intangibles 3,705.0 3,575.2 3,448.8 3,319.2 EV/sales (X) 1.0 1.0 1.0 0.9 Total investments 0.0 0.0 0.0 0.0 FCF yield (%) Other long-term assets EV/DACF (X) 9.4 8.3 9.3 8.8 Total assets 5,354.0 5,423.2 5,325.9 5,270.2 CROCI (%) ROE (%) Accounts payable Net debt/EBITDA (X) 3.3 2.9 2.8 2.7 Short-term debt Net debt/equity (%) Current lease liabilities -- -- -- -- Interest cover (X) 4.1 4.6 4.5 4.5 Other current liabilities Inventory days 6.9 8.3 8.5 8.6 Total current liabilities Receivable days Long-term debt 2,468.0 2,452.0 2,452.0 2,452.0 Days payable outstanding Non-current lease liabilities -- -- -- -- Growth & Margins (%) ______________________________________ Other long-term liabilities /26 1/27E 1/28E 1/29E Total long-term liabilities 2,872.0 2,923.5 2,923.5 2,928.5 Total revenue growth (2.9) 1.0 (0.4)…