TacticScaleWhat Science Applications International Does & How It Makes Money (SAIC)
Updated October 2026 · reflects Science Applications International's latest reported financials
U.S. government IT, engineering and mission services contractor. SAIC earns revenue from government service contracts, mainly with U.S.
How Science Applications International makes money
SAIC earns revenue from government service contracts, mainly with U.S. federal defense, intelligence and civilian agencies, with some work for state and local governments. It is paid to design, integrate, operate and support IT and engineering programs, reported in two segments: Defense and Intelligence, and Civilian.
What Science Applications International does
Science Applications International Corporation (SAIC) is a Reston, Virginia-based provider of technical, engineering and IT services to the U.S. government. The company traces its roots to 1969 and took its current name in 2013. It reports two segments, Defense and Intelligence, and Civilian. Its customers include every branch of the armed forces, agencies of the Department of War, NASA, the State Department, the Department of Justice, the Department of Homeland Security and members of the Intelligence Community. SAIC's offerings cover the full life cycle of government IT: designing, integrating, running and securing infrastructure. They include enterprise IT such as cloud, cybersecurity, service management and digital workplace, and mission IT such as CJADC2, data and AI, digital transformation and quantum technologies. The company also provides digital engineering, training and simulation, ground vehicle support and program management. Nearly all of its business comes from government contracts, so its results depend closely on federal spending priorities, especially in defense and intelligence.
Products & services
- IT modernization and enterprise IT (cloud, cybersecurity, digital workplace)
- Mission IT solutions (CJADC2, data and AI, digital transformation)
- Digital engineering and system integration
- Training and simulation
- Ground vehicle support services
- Program management and advisory services
What is Science Applications International worth?
On an owner-earnings DCF, Science Applications International's most-likely value is about $257 versus a recent price near $135 (91% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$168) with a margin of safety — so the honest verdict here is “Deeply discounted.” Fair value earns its keep only at the extremes, not in the wide middle.
On the financials alone, $135 is below even the no-growth floor ($168); the market's discount — expectations and sentiment beyond the numbers — is pricing in ≈ -2.3%/yr. A bargain only if that pessimism is overdone.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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