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Earlier this week, Science Applications International Corporation updated its fiscal 2027 guidance, lowering expected revenue to US$7.00 billion–US$7.20 billion from US$7.35 billion–US$7.55 billion after unfavorable recompete decisions and procurement delays signaled an organic revenue decline.
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The company is responding by prioritizing contracts with greater technology transformation potential, while maintaining its emphasis on margins and execution despite weaker revenue expectations.
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We’ll now examine how this guidance cut, driven by procurement delays and contract losses, reshapes Science Applications International’s previously optimistic investment narrative.
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To own Science Applications International today, you need to believe its shift toward higher value, technology transformation work can offset contract losses and procurement delays that are now pressuring revenue. The cut to fiscal 2027 guidance brings that risk front and center, since sustained delays and weaker recompete outcomes directly threaten the most important near term catalyst: a return to organic growth as existing backlog converts and new awards ramp.
The updated fiscal 2027 outlook, which now calls for revenue of US$7.00 billion to US$7.20 billion instead of US$7.35 billion to US$7.55 billion, is the announcement most directly tied to these risks. It crystallizes how procurement slippage and unfavorable awards can undermine prior optimism about a quick rebound, and it puts more weight on management’s plan to lean into mission and engineering work while protecting margins as a key catalyst from here.
Yet against that backdrop, investors should also weigh the risk that persistent procurement delays and tighter budgets could quietly reshape SAIC’s contract book in ways many shareholders are not fully focused on…
Read the full narrative on Science Applications International (it’s free!)
Science Applications International’s valuation narrative projects $7.7 billion in revenue and $344.8 million in earnings by 2028.
Uncover how Science Applications International’s forecasts yield a $113.38 fair value, a 31% upside to its current price.
Some of the most optimistic analysts were assuming SAIC could reach about US$8.5 billion of revenue and roughly US$438.7 million of earnings by 2028, while the latest guidance cut and contract losses highlight how sensitive that story is to procurement delays and budget friction. This shows you how far apart views can be and why it helps to compare several perspectives before deciding which version of SAIC’s future you find most convincing.