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Stocks•7 June 2026•

2 min read

Jefferies Raises SAIC Price Target Following Robust Q1 Earnings Beat

Key Facts

1Jefferies increased its price target for SAIC to $115.00 while maintaining a Hold rating.

2The company reported a 1.5% year-over-year revenue growth to $1.91 billion, surpassing expectations.

3Non-GAAP earnings per share (EPS) surged 68.2% to $3.23, beating the estimate of $2.26.

Amid sustained demand for defense contracts and government technology services, SAIC has strengthened its financial standing with quarterly results that outperformed expectations. Jefferies increased its price target for SAIC to $115.00 while maintaining a Hold rating, following the company's report of a 1.5% revenue growth to $1.91 billion. Furthermore, non-GAAP earnings per share (EPS) surged by 68.2% to reach $3.23, significantly beating the initial analyst estimate of $2.26.

This optimism is underpinned by a robust $22.9 billion backlog, providing strong visibility for future cash flows compared to its defense sector peers. In comparison, peer Leidos (LDOS) recently reported 7% revenue growth, while Booz Allen Hamilton (BAH) saw a 13% increase, placing SAIC's performance within a broader sector expansion driven by increased U.S. military spending per market data. New contracts with the U.S. Navy and SilverEdge Government Solutions have further bolstered this positive outlook.

Investors should monitor the sustainability of this growth within the current interest rate environment, as SAIC shares closed near the new target levels recently. Looking at the economic calendar, the market awaits further industrial data following U.S. Factory Orders which grew by 4.8% as of June 3, 2026, potentially impacting defense sector sentiment. Additionally, the raised earnings guidance for fiscal year 2027 remains a key catalyst for the stock's medium-term performance.