From Yahoo Finance: 2025-06-02 16:51:00

Government contractor Science Applications International (NASDAQ: SAIC) reported disappointing quarterly results, with a 13% drop in shares due to government efficiency initiatives. SAIC earned $1.92 per share on $1.88 billion revenue, missing analyst expectations of $2.12 per share on $1.87 billion in sales. Net income fell 12% to $68 million, with an operating margin drop to 6.4%.

CEO Toni Townes-Whitley attributed the performance to the Department of Government Efficiency (DOGE) scrutinizing spending, causing customer turnover, procurement delays, and award timeline shifts. Despite the impact, SAIC expects less than a 1% revenue effect from DOGE. The company secured $2.4 billion in future business, hinting at brighter times ahead and maintaining full-year guidance.

SAIC’s stock plummeted to a near historical low trading at 10 times future earnings. While uncertainty remains, the company anticipates opportunities to recover lost profits in upcoming quarters. With a looming Congressional budget battle, clarity on future spending could be delayed. Long-term investors may want to monitor SAIC for potential opportunities.



Read more at Yahoo Finance: Why SAIC Stock Plunged Today