10:20 AM EDT, 09/04/2025 (MT Newswires) -- Science Applications International ( SAIC ) lowered its full-year revenue outlook on Thursday as the US government services contractor's topline unexpectedly declined year over year in the fiscal second quarter, even though earnings topped market expectations.

The company now anticipates revenue to be in a range of $7.25 billion to $7.33 billion for fiscal 2026, down from its previous projections of $7.6 billion to $7.75 billion. The current consensus on FactSet is for $7.65 billion. The stock dropped 6.9% in Thursday trade.

"Our revised guidance assumes that the operating environment remains stable but does not improve this year," Chief Executive Toni Townes-Whitley said in a statement. "We believe that this more cautious outlook is prudent, and we are confident in our ability to execute against it."

Adjusted earnings are now pegged at $9.40 to $9.60 per share for the ongoing fiscal year, up from the prior guidance range of $9.10 to $9.30. The Street is looking for non-GAAP EPS of $9.20.

For the three months through Aug. 1, the firm's adjusted EPS jumped 77% to $3.63, exceeding the average analyst estimate of $2.23. Revenue, however, decreased to $1.77 billion from $1.82 billion, compared with the Street's view for an increase to $1.86 billion. The company cited contract completions and volume ramp down on existing contracts for its topline fall, partially offset by new contracts.

"Slower on-contract growth and continued delays in new business awards and new program ramps are contributing to a more challenging revenue environment than previously forecasted," according to Townes-Whitley. "We are responding purposefully by aligning our cost structure while sustaining key investments to drive long-term value creation."

Net bookings for the quarter totaled $2.6 billion, resulting in a book-to-bill ratio of about 1.5. The firm's backlog at the end of the quarter was about $23.2 billion, of which around $3.6 billion was funded, it said.

Price: 105.72, Change: -8.39, Percent Change: -7.35