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SAIC SAIC

SAIC scores weak on business quality (3.4 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$134.66Oct 10, 2026
Business qualityWeak
Next earningsDec 2, 2026
Insiders, 90 daysBuying

Why it matters

  1. What SAIC does

    Science Applications International Corp delivers technical, engineering, and enterprise IT services primarily to the US federal government, earning revenue through complex defense and civilian agency contracts. The business is navigating a period of top-line contraction as it repositions its contract portfolio toward higher-margin work.

  2. What it does best

    SAIC excels at securing sticky, long-term government IT and defense modernization contracts backed by deep customer integration. Its gross margin of 12.7% trails peers like TRU at 58.7%, reflecting its lower-margin government contracting model.

  3. The main risk

    Contract recompetes and federal budget uncertainty remain constant threats. With revenue declining to $7.4 billion from $7.5 billion prior, losing key defense awards directly compresses already thin operating margins.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Gross margin rests at 12.7% and operating margin at 8.0%, both constrained by the service-heavy contracting model. While free cash flow conversion remains decent, the business does not enjoy dramatic scale-driven margin expansion.

MoatFair

SAIC possesses a regulatory and switching-cost moat locking in federal defense agencies through entrenched institutional knowledge. Its operating margin ranks in the sector's 22nd percentile, reflecting limited pricing power.

GrowthSlow

Revenue is shrinking at a 2.9% annual rate, falling in the bottom decile of its sector at the 12th percentile. The growth engine is fading as historical top-line figures hover below prior years.

Financial healthWeak

Debt-to-equity sits at 1.7 with interest coverage at 4.5x, leaving limited room for error. Free cash flow rose to $619 million, supported by disciplined capex, keeping the balance sheet constrained but stable.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 insider bought $133K on the open market.

Our sealed record on SAIC

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is SAIC a good business?

SAIC scores weak on the Cluenex quality check (3.4 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health weak.

Are insiders buying SAIC?

In the last 90 days of SEC Form 4 filings: 1 insider bought $133K on the open market.

When does SAIC report earnings?

Dec 2, 2026.

For members

See SAIC today

  • Today's verdict on SAIC, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “SAIC (SAIC)”, https://cluenex.com/stocks/saic/, data as of Oct 10, 2026.