• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    How Debt Refinancing At SAIC Has Changed Its Investment Story

    Simply Wall St·11/10/2026 08:25:55
    Listen to the news
    • Science Applications International Corp. recently priced and completed a $500 million offering of 6.75% senior unsecured notes due 2034 to refinance its 4.875% Senior Notes due 2028 and for general corporate purposes.
    • The refinancing shifts Science Applications International Corp.'s debt maturity profile out to 2034, which can affect interest costs, leverage levels, and flexibility for future capital allocation decisions.
    • We will look at how Science Applications International Corp.'s investment narrative develops as it refinances debt with new 6.75% senior notes.

    Scan Science Applications International alongside hand-picked peers refinancing on similar terms by running the 30 resilient stocks with low risk scores that filters for resilient balance sheets and measured leverage profiles.

    Science Applications International Investment Narrative Recap

    Science Applications International appeals to investors who believe its contract engine, cost program and government customer base can keep earnings growing modestly while revenue expansion stays measured. According to LunaRodas, an investor in the Simply Wall St Community, the key near term question is whether the bookings machine supports that story or begins to soften.

    The fresh 6.75% notes due 2034 do not change that core belief. They reshape when cash leaves the business rather than which projects win. The short term catalyst still sits in contract awards, book to bill and execution on Project ORBIT, while the biggest risk remains high leverage if free cash flow or awards slow.

    The most relevant disclosure is the completed US$500 million fixed rate senior unsecured notes due 2034, issued at 100% of principal and guaranteed by key subsidiaries. This refinancing replaces the 4.875% 2028 notes and extends maturities, which matters for a company that already carries a high level of debt.

    LunaRodas highlights Project ORBIT as central to the margin story, with management outlining a multi year cost program and reinvestment plan. The new bond sits in that context. Interest obligations, leverage and covenant headroom feed directly into how confidently Science Applications International can keep funding ORBIT, pursue contract bids and handle any slower booking periods.

    LunaRodas anchors the Science Applications International narrative fair value at $119.24, grounded mainly in the view that ORBIT's targeted margin path and on contract growth trajectory give the current earnings profile a clearer and more durable foundation than the cautious booking commentary might initially suggest.

    Uncover why Science Applications International's fair value indicates a 21% potential downside to its current price, leaving little room for error.

    NasdaqGS:SAIC 1-Year Stock Price Chart
    NasdaqGS:SAIC 1-Year Stock Price Chart

    Exploring Other Perspectives

    Some of the lowest ranked analysts focus less on Project ORBIT risk and more on revenue pressure at Science Applications International. They were modelling roughly flat revenue at about US$7.4b by 2029 and only a small earnings lift to US$399.0m. That is a much more cautious story, and the new 2034 notes could eventually reshape those views.

    Explore 4 other Science Applications International fair value estimates, including one that suggests as much as 21% downside from the current price.

    Decide For Yourself

    Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.

    Looking for more Science Applications International investment ideas?

    Once you have a view on Science Applications International, it can help to widen the lens and compare it with other companies that match your risk tolerance, income needs and valuation discipline. The Simply Wall St Screener is a quick way to build that broader watchlist without losing sight of quality.