Science Applications International Corporation
Science Applications International Corporation provides technical, engineering, and mission and enterprise information technology (IT) services in the United States. It operates through two segments, Defense and Intelligence; and Civilian. The company offers IT modernization services for defense, intelligence, and civilian agencies; digital engineering services; artificial intelligence (AI) solutions; mission systems support and advisory; training and simulation; and ground vehicle support services for the nation's armed forces. It also provides services for the design, development, integration, deployment, management and operations, sustainability, and security of IT infrastructure; mission IT solutions comprising CJADC2, data and AI, digital transformation, and quantum technologies; enterprise IT solutions consisting of service management, cloud, cybersecurity, and digital workplace; engineering services, including system integration and delivery services; and professional services, such as program management. The company serves military forces, including the Army, Air Force, Navy, Marines, Coast Guard, and Space Force; agencies of the Department of War, National Aeronautics and Space Administration, U.S. Department of State, Department of Justice, and Department of Homeland Security; and members of the Intelligence Community, as well as civilian markets, such as federal, state, and local governments. The company was formerly known as SAIC Gemini, Inc. and changed its name to Science Applications International Corporation in September 2013. Science Applications International Corporation was founded in 1969 and is headquartered in Reston, Virginia.
What does it do?
SAIC is a company that the U.S. government calls when it needs help running complex technology systems. Think of them as the IT department for the Pentagon, the CIA, and federal civilian agencies. They do things like modernizing old government computer systems, building AI tools for military use, and keeping critical software running securely. If a government agency needs to upgrade a decades-old database or train soldiers using digital simulations, SAIC is often the company doing that work behind the scenes.
Government IT spending is enormous and largely recession-proof — the federal budget keeps flowing even when the private sector tightens up. With the U.S. government racing to modernize its technology infrastructure and integrate AI into defense and intelligence operations, companies like SAIC sit right at the center of that spending wave. Investors are paying attention because defense tech is becoming a geopolitical priority, not just a budget line.
How does it make money?
SAIC makes almost all of its money — roughly $7.3 billion in annual revenue — by winning long-term government contracts and delivering services over multi-year periods. Their two segments are Defense and Intelligence (think military and spy agencies) and Civilian (think agencies like the VA or DHS). These contracts tend to be sticky, meaning once SAIC wins one, they often keep it for years. Their profit margin is relatively thin but predictable, with about $400 million in net income on that $7.3 billion in revenue.
Why do investors care?
The core investment story is stability with a side of growth: SAIC has a large, locked-in backlog of government contracts that gives investors predictable cash flows. The exciting part is that the U.S. government is actively pushing to modernize and bring AI into defense operations, and SAIC is positioning itself directly in that spend. For the thesis to work, SAIC needs to keep winning contract renewals, successfully compete for new AI and digital transformation projects, and manage its recent revenue dip — which slipped from $7.5 billion to $7.3 billion year over year.
Deep Dive
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