Science Applications International Corp. (NASDAQ:SAIC) stock rose Monday after the government services contractor reported fiscal first-quarter 2027 results that topped Wall Street estimates and raised its full-year profit outlook.

“I am proud of our team’s performance this quarter, delivering record margin and modest organic growth,” said Chief Executive Officer Jim Reagan.

SAIC Revenue, Earnings Beat Expectations

Revenue rose 2% year over year to $1.91 billion, exceeding the analyst consensus estimate of $1.82 billion. Adjusted earnings per share came in at $3.23, well above estimates of $2.29.

SAIC, which provides technical, engineering and enterprise IT services to defense, intelligence, civilian and space customers, also delivered stronger profitability during the quarter.

Operating income increased 48% to $179 million, while operating margin expanded 300 basis points to 9.4%. Adjusted operating income rose 40% to $221 million, lifting the adjusted operating margin by 320 basis points to 11.6%.

Adjusted EBITDA climbed 41% to $222 million, with adjusted EBITDA margin also improving 320 basis points to 11.6%.

Net bookings totaled approximately $2.1 ...