CACI Stock Gains as Q1 Earnings and Revenues Surpass Estimates

CACI International Inc. CACI shares gained 1.7% during Wednesday’s extended trading session after the company reported better-than-expected results for the first quarter of fiscal 2026.

CACI reported first-quarter non-GAAP earnings of $6.85 per share, which beat the Zacks Consensus Estimate by 10.48%. The bottom line increased 15.5% on a year-over-year basis, primarily driven by higher revenues and efficient cost management.

CACI surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 16.67%.

CACI International, Inc. Price, Consensus and EPS Surprise

CACI International, Inc. price-consensus-eps-surprise-chart | CACI International, Inc. Quote

In the first quarter, CACI reported revenues of $2.29 billion, which topped the consensus mark by 1.66%. The top line increased 11.2% from the prior-year quarter, primarily driven by 5.5% organic growth.

CACI’s Q1 Details

In the first quarter of fiscal 2026, contract awards totaled $5 billion, with approximately 60% for new business. Awards exclude ceiling values of multi-award, indefinite delivery and indefinite quantity contracts.

The total backlog as of Sept. 30, 2025 was $31.4 billion, up 9.8% from $28.6 billion reported a year ago. The funded backlog was $4.2 billion, up 31.3% from $3.2 billion reported a year ago. Our estimates for the total backlog and funded backlog were pegged at $33.9 billion and $5.4 billion, respectively.

In terms of the customer mix, the Department of Defense contributed 51.5% to total revenues in the reported quarter. Intelligence Community made up for 26.1%, Federal Civilian Agencies accounted for 18%, and Commercial and other customers accounted for 4.4%. Revenues from the Department of Defense, Intelligence Community, Federal Civilian Agencies, and Commercial and Other customers increased 8.5%, 11.6%, 16.9% and 20.2%, respectively.

The Prime Contractor and Subcontractor accounted for 90.8% and 9.2% of total revenues, respectively. Revenues from the Prime Contractor and Subcontractor increased 10.4% and 19.4%, respectively.

In terms of contract type, cost-plus-fee-type, fixed-price, and time and material-type contracts contributed 60.5%, 26.7% and 12.8%, respectively, to total revenues. Revenues from cost-plus-fee-type and fixed-price contracts grew 8% and 28.7%, respectively. However, sales from time and material-type contracts declined 2.7%.

Expertise and Technology accounted for 43.1% and 56.9% of total revenues, respectively. Revenues from Expertise declined 0.1%, while those from the Technology segment soared 21.7%.

The operating income for the quarter amounted to $212.3 million, up 18% year over year. The operating margin expanded 60 basis points (bps) to 9.3%.

Adjusted EBITDA increased 24.4% year over year to $268.6 million, while the adjusted EBITDA margin expanded 120 bps to 11.7%.

CACI’s Balance Sheet & Cash Flow

As of Sept. 30, 2025, CACI had cash and cash equivalents of $133 million compared with the previous quarter’s $106.2 million.

The total long-term (net of the current portion) debt was $2.71 billion, down from $2.85 billion as of June 30, 2025.

The company generated operating cash flow (excluding mini-automatic radar plotting aid or MARPA) of $160 million in the first quarter of fiscal 2026, up 162.8% from the year-ago quarter. The company generated free cash flow of $143 million, up from $49.4 million in the year-ago quarter.

CACI Reiterates Fiscal 2026 Guidance

For fiscal 2026, CACI continues to anticipate revenues between $9.2 billion and $9.4 billion ($9.3 billion at the midpoint). The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $9.32 billion, suggesting an increase of 8.1% year over year.

Adjusted net income for fiscal 2026 is still projected in the band of $605-$625 million. The company still estimates non-GAAP earnings per share in the range of $27.13-$28.03. The consensus mark for the bottom line is pinned at $27.15 per share, calling for a year-over-year increase of 2.5%.

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

CACI’s Zacks Rank and Stocks to Consider

Currently, CACI carries a Zacks Rank #3 (Hold).

Impinj PI, Credo Technology Group CRDO and Ambarella AMBA are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Impinj and Credo Technology Group sport a Zacks Rank #1 (Strong Buy) each, while Ambarella carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Impinj’s full-year 2025 earnings is pegged at $1.98 per share, revised upward by 4 cents over the past 60 days and suggests a year-over-year decline of 6.2%. Impinj shares have soared 39.2% year to date.

The Zacks Consensus Estimate for Credo Technology Group’s fiscal 2026 earnings has been revised upward by 37.2% over the past 60 days to $2.03 per share, calling for an increase of 190% year over year. Credo Technology Group shares have surged 104.2% year to date.

The Zacks Consensus Estimate for Ambarella’s fiscal 2026 earnings has moved northward to 50 cents per share from 13 cents in the past 60 days, implying 412.5% year-over-year growth. Ambarella shares have risen 9.7% year to date.

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

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