CACI International, Inc.
CACI · NYSE
Next quarter
Expected to report Jan 20, 2027 — estimated from last year’s reporting date.
Consensus is $7.20 EPS for Dec 2026 across 6 estimates, ranging $6.69 to $7.49.
CACI Sep 2026
- 18.76%
- -0.67%
- $6.45
- $7.66
- —
- $2.47B
Reported results
- $2.47B
- $247.53M
- 10.00%
- $130.37M
- $5.84
Highlights
- Adjusted EPS beat: Adjusted diluted EPS was $7.66, 18.8% above the $6.45 consensus; GAAP diluted EPS was $5.84, up 3.7% year over year.
- Growth and mix: Revenue rose 8.2% year over year to $2.475 billion, including 2.1% organic growth; technology revenue increased 11.4%, versus 3.9% for expertise.
- Operating leverage: Operating income grew 16.6% to $247.5 million and EBITDA rose 22.4% to $328.8 million; EBITDA margin expanded to 13.3% from 11.7%.
- Awards and backlog: CACI booked $4.8 billion of awards, a 2.0x book-to-bill, with about 61% for new business. Total backlog was $34.0 billion, up 0.3% year over year, while funded backlog rose 14.8% to $6.2 billion.
- Higher FY27 outlook: Revenue guidance increased to $10.7–$10.9 billion and adjusted EPS to $33.18–$34.08; free cash flow guidance remained at least $900 million.
- Cash conversion: Free cash flow was $133.5 million, down 6.6% year over year, as working capital weighed on operating cash flow; DSO increased to 59 days from 56.
- Estimate changes: Net changes in estimates added $16.0 million to pretax income, or $0.53 per diluted share, compared with a $5.0 million reduction a year ago.
- Legal development: A federal court vacated the $42 million Al Shimari judgment and entered judgment for CACI on October 21; plaintiffs may still seek Supreme Court review.
Analysis
CACI opened FY2027 with 8.2% revenue growth to $2.475 billion and stronger operating profit, while adjusted diluted EPS of $7.66 beat the $6.45 consensus by 18.8%. The distinction between adjusted and GAAP earnings matters: GAAP diluted EPS was $5.84, up 3.7% year over year, as intangible amortization rose to $54.3 million from $36.0 million and interest expense increased 58.6% to $73.2 million. Against Q3 FY2026, revenue increased from $2.35 billion and operating income from $228.9 million, while net income was flat at $130.4 million and GAAP EPS edged down from $5.88.
The print was defined by margin expansion and a strong award quarter, alongside a cash-flow decline. EBITDA margin reached 13.3%, up from 11.7%, supported by higher revenue and a favorable revenue mix; organic growth was 2.1%, with acquisitions also contributing. Awards of $4.8 billion produced 2.0x book-to-bill and lifted funded backlog 14.8% year over year, though total backlog was nearly unchanged. CACI raised revenue and adjusted earnings guidance modestly, but kept free cash flow guidance at at least $900 million after first-quarter free cash flow fell 6.6% to $133.5 million. A $16.0 million favorable change in estimates also supported pretax income this quarter.
Revenue and margins
Revenue grew 8.2% to $2.475 billion, comprising 2.1% organic growth plus acquisition contributions. Department of War revenue rose 14.8% to $1.354 billion and Intelligence Community revenue increased 2.6% to $612.0 million; federal civilian revenue declined 3.7% to $396.4 million. Technology revenue grew 11.4% to $1.449 billion, outpacing expertise growth of 3.9% to $1.025 billion. Fixed-price revenue increased 34.4% to $821.8 million, while cost-plus-fee revenue fell 5.5% to $1.306 billion. CACI attributed lower direct costs as a share of revenue to favorable mix: the ratio fell to 64.6% from 67.6%.
- Operating profit: Operating income increased 16.6% to $247.5 million, faster than revenue; EBITDA rose 22.4% to $328.8 million and its margin expanded 1.6 percentage points to 13.3%.
- Offsetting expenses: Indirect costs rose 16.1% to $550.1 million, or 22.2% of revenue versus 20.7% a year ago. Depreciation and amortization increased 46.0% to $79.3 million, reflecting timing of intangible assets acquired in FY2026.
Awards and backlog
First-quarter awards totaled $4.8 billion, down 3.4% from $5.0 billion a year earlier but equivalent to 2.0x quarterly revenue; approximately 61% represented new business. Total backlog was $34.0 billion, only 0.3% above the year-ago level, while funded backlog grew more quickly to $6.2 billion from $5.4 billion. The distinction is important: total backlog includes unfunded amounts and unexercised options, whereas funded backlog reflects appropriated contract funding.
- Large awards: CACI recorded $1.2 billion of award and backlog value for a USCENTCOM award with a $1.5 billion ceiling, based on current requirements, and $1.2 billion for a five-year USASOC task order with a $1.6 billion value.
- Forward revenue visibility: Remaining performance obligations were $14.3 billion; CACI expects to recognize approximately 43% over the next 12 months and 62% over the next 24 months.
FY27 guidance
CACI raised its FY2027 revenue range by $50 million at both ends, to $10.7–$10.9 billion, and adjusted net income guidance by $5 million at both ends, to $740–$760 million. Adjusted diluted EPS guidance increased by $0.22 at both ends to $33.18–$34.08, with diluted weighted-average shares still expected at 22.3 million. The company reaffirmed free cash flow guidance of at least $900 million. Separately, CACI changed its fiscal year-end from June 30 to December 31 and plans a six-month transition period ending December 31, 2026.
Cash and working capital
Operating cash flow excluding MARPA was $144.8 million, down 9.5% from $160.0 million; free cash flow declined 6.6% to $133.5 million after $11.4 million of capital expenditure. CACI attributed the operating cash decline primarily to working-capital timing, including higher prepaid expenses and other assets. DSO, excluding MARPA, increased to 59 days from 56 days. Reported operating cash flow was $161.3 million and included $16.5 million of net cash inflow from MARPA.
Earnings quality
The adjusted measure excludes intangible amortization and its tax effect: adjusted net income increased 12.7% to $171.0 million and adjusted diluted EPS rose 11.8% to $7.66, compared with GAAP net income growth of 4.5% to $130.4 million and GAAP diluted EPS growth of 3.7% to $5.84. Intangible amortization was $54.3 million, up 50.7% year over year. Separately, net changes in estimates increased pretax income by $16.0 million, equal to $0.53 per diluted share; the year-ago quarter had a $5.0 million decrease, or $0.17 per share.
Al Shimari dismissal
On October 21, the District Court vacated the January 2025 judgment and entered judgment in CACI’s favor, dismissing the case. The reversal followed an August 2026 Fourth Circuit decision directing dismissal after a Supreme Court ruling on claims under the Alien Tort Statute. Plaintiffs did not seek rehearing by the appellate deadline, but have indicated they may seek Supreme Court review. CACI said no amounts related to the case had been recognized in its financial statements.
