How Investors May Respond To SAIC (SAIC) Cutting 2027 Guidance While Betting On Rural Healthcare

• In February 2026, Science Applications International Corp. lowered its fiscal 2027 revenue guidance to US$7.0–US$7.2 billion amid unfavorable contract recompete outcomes and also named long-time government services executive Jim Reagan as permanent CEO, while launching the Alliance for Advancing Rural Healthcare to support a major federal rural health modernization program.
• Together, the weaker revenue outlook and expansion into rural healthcare solutions highlight a company balancing contract pressures with efforts to broaden its role in federally funded transformation initiatives.
• We’ll now examine how the lowered revenue guidance, alongside the rural healthcare alliance launch, reshapes Science Applications International’s investment narrative.

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Science Applications International Investment Narrative Recap

To own Science Applications International today, you need to believe its government IT and mission services franchise can absorb contract setbacks while still converting its bid pipeline into sustainable revenue and cash flow. The lowered fiscal 2027 revenue guidance makes recompete risk the key near term swing factor, while the biggest risk remains ongoing funding pressure and competition in federal IT, which could keep growth subdued if contract losses like the recent ones continue.

Among the latest developments, the launch of the Alliance for Advancing Rural Healthcare stands out as most relevant. It ties SAIC’s core strengths in AI, data, and cybersecurity to one of the largest federal rural health programs, potentially reinforcing its role in complex, long duration government modernization efforts at a time when traditional recompetes have turned against it.

Yet while the rural healthcare initiative looks promising, investors should be aware that contract recompete risk and budget pressure could still…

Read the full narrative on Science Applications International (it’s free!)

Science Applications International’s narrative projects $7.7 billion revenue and $344.8 million earnings by 2028.

Uncover how Science Applications International’s forecasts yield a $113.38 fair value, a 26% upside to its current price.

Exploring Other Perspectives

Some analysts were far more optimistic, assuming revenue could reach about US$8.5 billion and earnings about US$438.7 million, yet today’s guidance cut and contract losses could cause both that upbeat backlog story and the risk of federal budget pressure to be reassessed.

Explore 4 other fair value estimates on Science Applications International – why the stock might be worth over 2x more than the current price!

The Verdict Is Yours

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