SAIC sees FY25 EPS at $8.00-$8.25, consensus $7.82

Sees FY25 revenue $7.25B-$7.40B, consensus, $7.26B. As part of its Q3 earnings presentation slides, the company also guided FY26 EPS at $8.90-$9.10 and revenue at $7.45B-$7.65B. In the Q3 earnings call yesterday, CFO Prabu Natarajan stated: “We are maintaining our free cash flow guidance of $460 million to $480 million and the strength of our earnings growth and the robustness of our cash collections provides us with increased confidence in our path to at least $11 per share in FY26. Importantly, as we’ve communicated, our plan to increase free cash flow per share by approximately 10% annually for the next three years assumes that the company’s cash taxes, excluding Section 174 payments, increase from approximately 0 in FY23 to approximately $100 million in FY26. Notwithstanding this planned increase in cash taxes, we continue to expect double digit free cash flow per share growth in the coming years, driven by strong earnings growth, continued rigor in managing working capital and prudent capital deployment, focused on our share repurchase program and M&A posture informed by capability based tuck-ins. We are encouraged by the strong financial results we’ve delivered in recent quarters. Our updated FY26 targets for revenue and adjusted EBITDA are already 2% higher and adjusted EPS 5% higher than the original targets provided at Investor Day eight months ago, and position us well to create additional value for our shareholders.”