Science Applications International Corporation (NASDAQ:SAIC) just released its latest third-quarter results and things are looking bullish. The company beat forecasts, with revenue of US$2.0b, some 2.3% above estimates, and statutory earnings per share (EPS) coming in at US$2.13, 24% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Science Applications International's nine analysts is for revenues of US$7.60b in 2026. This would reflect an okay 3.1% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 15% to US$7.11. Before this earnings report, the analysts had been forecasting revenues of US$7.59b and earnings per share (EPS) of US$7.13 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$143, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Science Applications International at US$155 per share, while the most bearish prices it at US$124. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Science Applications International's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.4% growth on an annualised basis. This is compared to a historical growth rate of 3.2% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Science Applications International is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$143, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Science Applications International analysts - going out to 2027, and you can see them free on our platform here.
Even so, be aware that Science Applications International is showing 2 warning signs in our investment analysis , you should know about...
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