Science Applications International Corporation Just Recorded A 24% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Science Applications International Corporation (NASDAQ:SAIC) just kicked off its latest third-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 2.3% to hit US$2.0b. Science Applications International also reported a statutory profit of US$2.13, which was an impressive 24% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Science Applications International

Taking into account the latest results, the consensus forecast from Science Applications International's nine analysts is for revenues of US$7.60b in 2026. This reflects a credible 3.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 15% to US$7.11. Yet prior to the latest earnings, the analysts had been anticipated 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.

There were no changes to revenue or earnings estimates or the price target of US$143, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Science Applications International analyst has a price target of US$155 per share, while the most pessimistic values it at US$124. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. 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. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.2% per year. 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Science Applications International's revenue is expected to 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Science Applications International going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Science Applications International that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.