SAIC Stock Plunges 7% on Q2 Revenue Miss, Lowered Outlook
Despite beating earnings per share estimates, the government contractor's shares fell sharply after cutting its full-year revenue forecast, signaling slowing growth.
Shares of Science Applications International Corp. (SAIC) plunged nearly 7% in pre-market trading after the technology integrator reported second-quarter financial results that revealed a significant miss on revenue and a lowered forecast for the full fiscal year.
The negative investor reaction came despite the company posting an adjusted earnings per share that beat Wall Street expectations. The core issue for investors was the company's top-line performance and future outlook. SAIC reported Q2 revenue that fell short of the consensus estimate, a key indicator of demand for its technology and engineering services, primarily for the U.S. government.
Exacerbating investor concerns, SAIC lowered its full-year 2025 revenue guidance. The move signals anticipated headwinds and a weaker growth trajectory than previously communicated, prompting a swift sell-off. The updated forecast overshadowed otherwise solid operational results, including what the company's CEO called "exceptional cash flow."
In its official announcement, , highlighting $138 million in cash flow from operations and new contract awards totaling approximately $1.2 billion. However, this resulted in a book-to-bill ratio of 0.6 for the quarter, a metric that suggests the company secured less new business than the revenue it recognized during the period.
CEO Toni Townes-Whitley expressed confidence in the company's long-term strategy, stating, "Our expanded pipeline of qualified opportunities is now converting to a higher number and quality of submissions and increasing book-to-bill, trends which are expected to accelerate and drive growth into Fiscal Year 2026." While management pointed toward future growth, the immediate indicates that investors are weighing the current revenue shortfall and reduced guidance more heavily.