Science Applications International (NAS:SAIC) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Science Applications International had a gross margin of 13.06% for the quarter that ended in Apr. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Science Applications International Gross Margin % Related Terms
Science Applications International Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Science Applications International Gross Margin % Chart
SAIC vs EXLS, PONY, EPAM: Gross Margin % Comparison
For the Information Technology Services subindustry, Science Applications International's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Science Applications International Gross Margin % vs Software Industry
For the Software industry and Technology sector, Science Applications International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Science Applications International's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Science Applications International (SAIC) has a Gross Margin % of 13.06% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Science Applications International and its competitors. This is 15% above median its historical median of 11.38. Over the past decade, Science Applications International's Gross Margin % has ranged from 9.23 to 12.51. According to the industry distribution chart, Science Applications International ranks #2392 out of 2683 companies in the Software industry, placing it in the top 89.2%.
Is Science Applications International's Gross Margin % too high?
Science Applications International's current Gross Margin % of 13.06% is 15% above median its 10-year median of 11.38. Over the past 10 years, this metric has ranged from a low of 9.23 to a high of 12.51. The Software industry median Gross Margin % is 40.45. Science Applications International's value of 13.06% is 67.7% below this industry median. Based on the distribution chart, Science Applications International ranks #2392 out of 2683 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Science Applications International has a GF Scoreâ„¢ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Science Applications International's Gross Margin % compare to EXLS and PONY?
According to the Software industry distribution chart, Science Applications International ranks #2392 out of 2683 companies for Gross Margin %. This places Science Applications International in the lower half of its industry. The industry median Gross Margin % is 40.45. Science Applications International's value of 13.06% is 67.7% below this benchmark. Historically, Science Applications International's own Gross Margin % has ranged from 9.23 to 12.51 over the past decade. While the company's 10-year median is 11.38 vs. the industry median of 40.45, Science Applications International has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,683 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Science Applications International's current Gross Margin % of 13.06% is 67.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Science Applications International and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Science Applications International's current Gross Margin % is 13.06%, which is 15% above median its own 10-year median of 11.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Science Applications International stock overvalued right now?
Based on GuruFocus' analysis, Science Applications International (SAIC) is currently considered Modestly Undervalued. The stock's GF Value™ is $126.94, compared to a current price of $107.90 — trading 15% below its estimated fair value. The current Gross Margin % is 13.06%, which is 15% above median its 10-year median of 11.38 and 67.7% below the Software industry median of 40.45. Science Applications International's overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Science Applications International (SAIC), the current Gross Margin % is 13.06% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Science Applications International (SAIC) Overvalued in 2026?
Based on GuruFocus' analysis, Science Applications International stock appears to be undervalued.
The current stock price of $107.90 is trading 15% below its estimated GF Value™ of $126.94.
GuruFocus considers Science Applications International to be Modestly Undervalued.
Key valuation signals for SAIC:
Gross Margin %: 13.06% (15% above median its 10-year median of 11.38)
GF Value™: $126.94 vs. price of $107.90 (15% below fair value)
Industry Position: 67.7% below the Software median (#2392 of 2683)
No single metric tells the full story. See the SAIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Science Applications International Business Description
Science Applications International Corp provides technical, engineering, and enterprise IT services mainly to the U.S. government. Specifically, it offers end-to-end solutions spanning the design, development, integration, deployment, management, operations, sustainment, and security of the customer's entire IT infrastructure. The company has two reportable segments, which include Defense and Intelligence and the Civilian segment. Maximum revenue is generated from its Defense and Intelligence segment, which provides a diverse portfolio of national security solutions to the DoW and the Intelligence Community of the United States Government. The Civilian segment provides solutions to the civilian markets, encompassing federal, state, and local governments.
79GF Score
Get the complete analysis for SAIC
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SAIC has been successfully added to your 
