SAIC Lands Nearly $1 Billion Contract To Modernize US Air Force
SAIC Secures Major Defense Contract: Science Applications International Corporation (SAIC) shares increased after the company won a $928 million contract for the HOPE 2.0 initiative under the U.S. Air Force, aimed at enhancing military capabilities through rapid prototyping and advanced technology integration.
Project Goals and Collaboration: The HOPE 2.0 project will improve decision-making and operational systems for the Air Force, involving collaboration with various defense firms to support military and intelligence agencies, while aligning with national defense priorities and innovation strategies.
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- Budget Increase: Congress approved an $8 billion defense budget, allocating $1.5 billion specifically for artificial intelligence and autonomous systems, indicating a strong commitment to unmanned platforms that is expected to drive growth for related companies.
- Market Outlook: The military unmanned systems market is projected to reach $76.05 billion by 2035, with a 10.5% annual growth rate, providing significant market opportunities for defense contractors.
- Technology Integration: VisionWave Holdings signed a letter of intent with Evie Autonomous to explore a £500,000 Proof-of-Concept program aimed at integrating autonomous vehicle technology into its Unmanned Ground Vehicle platforms, anticipated to commence in 2026.
- Acquisition Strategy: VisionWave completed the acquisition of Solar Drone Ltd., involving 1.8 million shares of common stock, which will enhance its competitiveness in both defense and solar operations markets, supporting its multi-domain autonomy strategy.
Elanco Animal Health Insider Purchase: Lawrence Erik Kurzius purchased 10,000 shares of Elanco Animal Health (ELAN) at $21.30 each, totaling $213,000, and saw a 6.4% gain during the trading session, despite ELAN being down 1.7% on Wednesday.
Previous Purchase by Kurzius: Prior to this transaction, Kurzius bought shares worth $211,000 at a price of $10.55 each within the last year.
Science Applications International Insider Purchase: EVP and CFO Prabu Natarajan acquired 2,000 shares of Science Applications International for $200,976 at $100.49 each, with the stock up 2.4% on Wednesday.
Previous Purchase by Natarajan: Natarajan had previously purchased shares worth $219,098 at a price of $109.55 each in the past year.
Top Rated IT Stocks: The article highlights the top-rated Information Technology stocks according to Validea's Earnings Yield Investor model, which is based on Joel Greenblatt's investment strategy focusing on high return on capital and earnings yields.
Science Applications International Corp (SAIC): SAIC is rated 90% based on its fundamentals and valuation, indicating strong interest. It provides technology integration services across defense, space, civilian, and intelligence markets.
Dell Technologies Inc (DELL): DELL is rated 80% and operates in the Computer Hardware industry, offering a range of solutions for digital transformation, including AI and data analytics, through its Infrastructure Solutions and Client Solutions segments.
Leidos Holdings Inc (LDOS) and InterDigital Inc (IDCC): Both companies are rated 60%, with LDOS focusing on national security and health services, while IDCC specializes in wireless and video technologies, emphasizing AI research and development.
Insider Buying Significance: Company executives, like Prabu Natarajan of Science Applications International Corp, often buy shares to signal confidence in their company's future, indicating potential undervaluation or positive developments.
Current Stock Performance: Science Applications International Corp shares are trading around $101.62, with a recent low of $84.155 and a high of $124.105 over the past year, suggesting a fluctuating market position.
Dividend Information: The company pays an annualized dividend of $1.48 per share, with a yield of approximately 1.5%, and the next ex-dividend date is set for January 14, 2026.
Market Insights: The article highlights the importance of monitoring insider purchases and provides a link for further information on other significant insider buys.

Third-Quarter Financial Performance: Science Applications International Corporation (SAIC) reported non-GAAP earnings of $2.58 per share for Q3 fiscal 2026, exceeding estimates but down slightly from the previous year. Revenues declined 5.6% year-over-year to $1.87 billion, yet still surpassed expectations.
Stock Performance and Guidance: Following the earnings report, SAIC shares rose 16.3%. The company raised its fiscal 2026 revenue guidance to between $7.275 billion and $7.325 billion, and adjusted EPS expectations to $9.80-$10.00, indicating a positive outlook despite a projected year-over-year revenue decline.
Segment Revenue Breakdown: Defence and Intelligence revenues, making up 77.1% of total revenues, fell 5% year-over-year to $1.44 billion, while Civilian revenues decreased by 7.4% to $427 million. The company reported a book-to-bill ratio of 1.2 and an estimated backlog of $23.8 billion.
Financial Metrics and Shareholder Returns: SAIC's SG&A expenses rose by 21.7%, and adjusted EBITDA decreased by 6.1%. The company repurchased $95 million in shares and paid $17 million in dividends during the quarter, with free cash flow for fiscal 2026 expected to exceed $550 million.









