Science Applications International Corp (SAIC) Faces Market Reaction After Q1 Earnings Report

Science Applications International Corp (SAIC), a consulting company specializing in scientific, engineering, and technology applications, recently disclosed its first-quarter results for fiscal year 2026. The company, listed on the New York Stock Exchange, reported mixed financial outcomes, leading to a notable decline in its stock price.

On June 2, 2025, SAIC announced its Q1 earnings, revealing that while revenue had increased, the company experienced a shortfall in free cash flow, which turned negative. This financial performance did not meet market expectations, prompting a drop in SAIC’s stock. Analysts had anticipated a quarterly earnings per share (EPS) of $2.12, but the company’s results fell short, leading to a decrease in investor confidence.

The market’s reaction was swift, with SAIC’s stock falling significantly following the earnings announcement. Reports from multiple financial news sources, including Benzinga, Yahoo Finance, and Investopedia, highlighted the stock’s decline due to the earnings miss and softer-than-expected guidance for future performance. The company’s weaker margins and cash flow were cited as contributing factors to the negative sentiment.

Goldman Sachs maintained a “sell” rating on SAIC stock following the earnings release, further influencing the market’s perception of the company’s financial health. Seeking Alpha also noted the slide in SAIC shares, attributing it to the disappointing earnings report.

Despite the challenges, SAIC has been active in strategic partnerships. On the same day, the company announced a collaboration with quantum computing firm Infleqtion, which raised $100 million in venture capital. This partnership aims to enhance SAIC’s capabilities in defense sales, leveraging Infleqtion’s quantum computing technology.

As SAIC navigates the aftermath of its Q1 earnings report, the company will need to address the concerns raised by investors and analysts. The mixed results, characterized by rising revenue but negative free cash flow, underscore the challenges SAIC faces in maintaining financial stability while pursuing growth opportunities.

In summary, Science Applications International Corp’s recent earnings report has led to a decline in its stock price, driven by missed expectations and softer guidance. The company’s strategic partnership with Infleqtion represents a potential avenue for future growth, but SAIC will need to focus on improving its financial metrics to regain investor confidence.