Here’s Why Science Applications International Corp (SAIC) Sold Off in Q3

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned 7.46% compared to a 12.60% return for the Russell 2000 Value Index. In the first three quarters of 2025, the Fund returned 13.77%, compared to 9.04% for the index. As the firm’s focus is on a diligent, disciplined, and patient process, it expects the fund to outperform in down markets and trail in speculative markets. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, the FPA Queens Road Small Cap Value Fund highlighted stocks such as Science Applications International Corporation (NASDAQ:SAIC). Science Applications International Corporation (NASDAQ:SAIC) is a technical, engineering, and enterprise information technology (IT) services provider. The one-month return of Science Applications International Corporation (NASDAQ:SAIC) was -8.63%, and its shares lost 30.31% of their value over the last 52 weeks. On November 21, 2025, Science Applications International Corporation (NASDAQ:SAIC) stock closed at $85.17 per share, with a market capitalization of $3.992 billion.

FPA Queens Road Small Cap Value Fund stated the following regarding Science Applications International Corporation (NASDAQ:SAIC) in its third quarter 2025 investor letter:

“Science Applications International Corporation (NASDAQ:SAIC) is a government contractor that provides engineering and IT services, roughly split 50/50 between defense and civilian agencies. Government contractor stocks have performed badly as the Trump administration has promised to cut government spending and waste – first through the Department of Government Efficiency (DOGE) and now through a more ad hoc series of Executive announcements and mandates. Investors are struggling to figure out the magnitude of the cuts and which companies are exposed. SAIC shares sold off aggressively when they reported a 3% decline in revenue and reduced Jan-26 fiscal year estimates during their September 4th earnings release. 14 We believe SAIC’s services generally make the government more efficient and that the current valuation , at roughly 10x earnings , discounts a punitive velocity of cuts to SAIC’s programs.”

Science Applications International Corporation (SAIC): Among Mid- And Large-Cap Stocks Insiders Are Buying After Trump’s Tariff Rollout

Science Applications International Corporation (NASDAQ:SAIC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 33 hedge fund portfolios held Science Applications International Corporation (NASDAQ:SAIC) at the end of the second quarter, compared to 39 in the previous quarter. While we acknowledge the risk and potential of Science Applications International Corporation (NASDAQ:SAIC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Science Applications International Corporation (NASDAQ:SAIC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Science Applications International Corporation (NASDAQ:SAIC) and shared the list of stocks Jim Cramer discussed recently. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.