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Jefferies Lowers Science Applications International Corporation (SAIC) Price Target, Keeps Hold Rating

On Monday, June 2, Jefferies analysts lowered the price target for Science Applications International Corporation (NASDAQ:SAIC) from $130 to $115 and kept a “Hold” rating.

This decision came after the company reported earnings per share for Q1 of fiscal year 2026 that were 5% below the consensus estimate, which also caused the shares to decline.

A DOD assistant presenting a portfolio of products and solutions from the company, highlighting its expertise in the IT sector.

Despite the earnings being disappointing, Jefferies analysts noted that Science Applications International Corporation’s organic growth of 1.6% was better than expected. However, the analysts expressed concerns because the company is relying on achieving 4-5 percentage points of on-contract growth for the full year. This is higher than typical levels and more than the 3.5 percentage points of growth the company reported in Q1.

Jefferies analysts also noted that Science Applications International Corporation needs to increase its profit margins from 8.4% in Q1 to 9.4% for the full year so it can meet its financial targets. The analysts kept their earnings estimate for the company at $9.25. However, they lowered the price target because of uncertainty about whether Science Applications International Corporation will be able to meet its targets.

Science Applications International Corporation is an American technology company that provides government services and information technology (IT) support. The company’s portfolio of offerings across the defense, space, civilian, and intelligence markets includes secure high-end solutions in mission IT, enterprise IT, engineering services, and professional services.

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