10:46 AM EDT, 03/17/2025 (MT Newswires) -- Science Applications International's ( SAIC ) shares rallied Monday as the US government services contractor increased its fiscal 2026 earnings outlook and posted stronger-than-expected results for the fourth quarter.

The company now expects adjusted per-share earnings between $9.10 and $9.30 for the ongoing fiscal year, up from its prior outlook of $8.90 to $9.10. The consensus on FactSet is for $9.06. Adjusted EPS in the previous fiscal year that ended Jan. 31 rose 16% year over year to $9.13.

Revenue is projected to be in the range of $7.60 billion to $7.75 billion, reflecting a higher bottom end than the previous $7.55 billion estimate. Analysts are looking for $7.63 billion. Revenue in fiscal 2025 totaled $7.48 billion versus $7.44 billion in the year prior.

"Subsequent to quarter close, we received a $1.8 billion award for our largest recompete win in recent years, the System Software Lifecycle Engineering program," Chief Executive Toni Townes-Whitley said in a statement. "This important win along with a backlog of submitted bids valued at approximately $20 billion reflect the momentum we are building inside the company."

The company's shares soared 11% in Monday trade.

Adjusted EPS in the fiscal fourth quarter rose to $2.57 from $1.43 a year earlier, ahead of the $2.09 consensus on FactSet. Revenue in the quarter increased 6% year over year to $1.84 billion, exceeding the $1.82 billion estimate projected by analysts. Sales increased amid volume growth due to new and existing contracts, partially offset by contract completions.

Net bookings for the quarter totaled $1.3 billion, resulting in a book-to-bill ratio of about 0.7.

The company's backlog at the end of fiscal 2025 was about $21.86 billion, of which $3.44 billion was funded.

Price: 115.40, Change: +10.97, Percent Change: +10.50