CACI Stock Gains More Than 3% as Q4 Earnings & Revenues Beat Estimates

CACI International Inc.’s CACI shares gained 3.5% during Wednesday’s extended trading session after the company reported better-than-expected results for the fourth quarter of fiscal 2025.

CACI reported fourth-quarter non-GAAP earnings of $8.40 per share, which beat the Zacks Consensus Estimate by 28.4%. The bottom line increased 27.1% on a year-over-year basis, primarily driven by higher revenues, increased operating income, lower taxes and a reduction in the share count, partially offset by increased interest expenses.

CACI surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 18.2%.

In the fourth quarter of fiscal 2025, CACI reported revenues of $2.3 billion, which outpaced the consensus mark by 0.3%. The top line increased 13% from the prior-year quarter, primarily driven by 5.3% organic growth.

CACI’s Q4 Details

In the fourth quarter of fiscal 2025, contract awards totaled $2.6 billion, with more than 40% for new business. Awards exclude ceiling values of multi-award, indefinite delivery and indefinite quantity contracts.

The total backlog as of June 30, 2025 was $31.4 billion, marginally down from $31.6 billion reported a year ago. The funded backlog was $4.2 billion, up 11% from $3.8 billion reported a year ago. Our estimates for the total backlog and the funded backlog were pegged at $31.9 billion and $4.1 billion, respectively.

In terms of the customer mix, the Department of Defense contributed 75.6% to total revenues in the reported quarter. Federal Civilian Agencies made up 19.4%, while Commercial and other customers accounted for 5%. Our estimates for the Department of Defense, Federal Civilian Agencies, and Commercial and Other customers’ contributions toward total revenues were pegged at 75.3%, 20.5% and 4.2%, respectively.

The Prime Contractor and Subcontractor accounted for 90.5% and 9.5% of total revenues, respectively. Our model estimates for the Prime Contractor and Subcontractor’s contributions toward total revenues were pinned at 89.9% and 10.1%, respectively.

In terms of contract type, cost-plus-fee-type, fixed-price, and time and material-type contracts contributed 60.5%, 26.3% and 13.2%, respectively, to total revenues. Our model estimates for cost-plus-fee-type, fixed-price, and time and material-type contracts’ contributions toward total revenues were pegged at 61.2%, 26.5% and 12.3%, respectively.

Expertise and Technology accounted for 41.8% and 58.2% of total revenues, respectively. Our estimates for Expertise and Technology’s contributions toward total revenues stood at 45.5% and 54.5%, respectively.

The operating income for the quarter amounted to $206.7 million, up 4.5% year over year. The operating margin contracted 70 basis points (bps) to 9%.

Adjusted EBITDA increased 12.6% year over year to $264.5 million, while the adjusted EBITDA margin remained flat at 11.5%.

CACI’s Balance Sheet & Cash Flow

As of June 30, 2025, CACI had cash and cash equivalents of $106.2 million compared with the previous quarter’s $223.9 million.

The total long-term (net of the current portion) debt was $2.85 billion, down from $3.04 billion as of March 31, 2025.

The company generated operating cash flow (excluding mini-automatic radar plotting aid or MARPA) of $167.1 million in the fourth quarter of fiscal 2025, up 6.3% from the year-ago quarter. The company generated free cash flow of $139.1 million, up from $134.6 million in the year-ago quarter. In full-fiscal 2025, CACI generated operating and free cash flows of $508.1 million and $442.5 million, respectively.

CACI Initiates Fiscal 2026 Guidance

For fiscal 2026, CACI anticipates revenues between $9.2 billion and $9.4 billion ($9.3 billion at midpoint). The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $9.25 billion, suggesting an increase of 7.3% year over year.

Adjusted net income for fiscal 2026 is projected in the band of $605-$625 million. The company estimates non-GAAP earnings per share in the range of $27.13-$28.03. The consensus mark for the bottom line is pinned at $27.01 per share, indicating a year-over-year increase of 9.6%.

Free cash flow is anticipated to be at least $710 million in fiscal 2026.

CACI’s Zacks Rank & Stocks to Consider

Currently, CACI carries a Zacks Rank #4 (Sell).

Some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector are Bumble BMBL, Arista Networks ANET and MongoDB MDB. Bumble sports a Zacks Rank #1 (Strong Buy) at present, while Arista Networks and MongoDB each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Bumble’s 2025 earnings has been revised upward by a penny to $1.05 per share in the past 30 days, implying a strong improvement from the loss of $4.61 reported in 2024. Bumble shares have declined 17.9% year to date.

The Zacks Consensus Estimate for Arista Networks’ 2025 earnings has been revised downward by a penny to $2.57 per share over the past seven days and suggests a year-over-year increase of 13.2%. Arista Networks shares have rallied 25.7% year to date.

The Zacks Consensus Estimate for MongoDB’s fiscal 2026 earnings has been revised upward by 4 cents to $3.07 per share in the past 60 days, calling for a 16.1% year-over-year decline. MongoDB shares have risen 1.2% year to date.

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This article originally published on Zacks Investment Research (zacks.com).

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