Science Applications International Corp (NYSE: SAIC) reported a 9% revenue decline year over year in the fiscal first quarter of 2025 to $1.847 billion, marginally beating the analyst consensus estimate of $1.844 billion.

Adjusted EPS of $1.92 was in line with the analyst consensus estimate.

The sale of the logistics and supply chain management business and contract completions mainly led to the topline decline.

Adjusting for the impact of the divestiture of the Supply Chain Business, revenues grew by 0.4%.

The adjusted operating margin declined by 30 bps to 8.6%. Adjusted EBITDA margin declined by 30 bps to 9.0%.

SAIC generated $13 million in free cash flow for the quarter versus $76 million a year ago. The company held $49 million in cash and equivalents as of May 3.

Net bookings for the quarter were $2.6 billion, reflecting a book-to-bill ratio of 1.4. The estimated backlog was around $23.6 billion at the end of the quarter.

Science Applications' board of directors declared a cash dividend of $0.37 per share of the company's common stock, payable on July 26 to stockholders of record on July 12.

SAIC CEO Toni Townes-Whitley said, "We are confident that the strategy and investments we are making best position the company to maximize long-term shareholder value. While we are seeing early indications of progress, we expect returns from our investments to further accelerate in FY26 and FY27."

FY25 Outlook: SAIC reiterated revenue of $7.35 billion – $7.50 billion vs. the consensus of $7.45 billion.

SAIC reiterated adjusted EPS guidance of $8.00 – $8.20 versus the consensus of $8.10.

The stock gained over 31% in the last 12 months. Investors can gain exposure to the stock via iShares Cybersecurity And Tech ETF (NYSE:IHAK) and First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR).

Price Action: SAIC shares are trading lower by 3.45% at $130.00 premarket at the last check Monday.

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