Science Applications International Corporation (NASDAQ:SAIC) shares rose on Wednesday after the company secured a significant new defense contract from the U.S. government.
The award, part of the Department of Defense’s mission to rapidly modernize its military capabilities, is poised to further solidify SAIC’s role in high-tech national defense efforts.
The company will lead the $928 million Hyper-Innovative Operational Prototype Engineering, or HOPE 2.0 initiative, under the U.S. Air Force Tactical Exploitation of National Capabilities (AF TENCAP) program, slated to begin in July 2025.
The contract will enhance the Air Force’s ability to quickly prototype and deploy advanced intelligence and operational systems.
Science Applications will deliver full-spectrum research, development, testing, and engineering support under HOPE 2.0.
The project is designed to fast-track the transition of innovative prototypes into near-operational tools that meet the Defense Department’s evolving requirements.
The initiative emphasizes agility, integrating commercial technology and data-driven strategies to outpace adversaries.
The scope of work includes enhancing decision-making capabilities through advanced sensor integration, improving command-and-control systems, supporting Special Operations Forces, and developing cutting-edge cyber tools.
By fusing intelligence and operational data, the goal is to equip warfighters with superior situational awareness and technological advantage across land, air, cyber, and space domains.
Science Applications will collaborate with over a dozen traditional and emerging defense firms to support the needs of 65 military and intelligence agencies.
“We’re excited to help Air Force TENCAP achieve evolutionary and revolutionary warfighting improvements,” said Vincent DiFronzo, Executive Vice President at SAIC, who emphasized the urgency of integrated mission systems for modern threats.
The HOPE 2.0 award aligns with national defense priorities, including deterrence in the Pacific and space-based defense initiatives like Golden Dome.
The project also matches the Defense Department’s Software Acquisition Pathway, aiming to cut lead times and boost innovation.
According to Benzinga Pro, SAIC stock has lost over 8% in the past year. Investors can gain exposure to the stock via iShares Cybersecurity and Tech ETF (NYSE:IHAK).
Price Action: SAIC shares are trading higher by 2.44% to $107.52 at last check Wednesday.
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