CACI International Delivers Double-Digit Growth Surge in FY2026 Opening Quarter

Strong Financial Performance Signals Momentum

CACI International Inc (NYSE: CACI) kicked off its fiscal 2026 with impressive results, posting revenues of $2.3 billion—representing 11.2% year-on-year growth. The company’s bottom line showed solid expansion too, with net income reaching $124.8 million and diluted earnings per share climbing to $5.63, up 5.6% compared to the same period last year.

When adjusting for one-time items, the picture becomes even brighter. Adjusted net income hit $151.7 million while adjusted diluted EPS jumped to $6.85, marking a 15.5% increase year-over-year. These metrics underscore the company’s ability to drive profitability alongside its revenue expansion, with EBITDA climbing to $268.6 million and maintaining an 11.7% margin—suggesting healthy operational efficiency.

Contract Pipeline Accelerates

The most striking headline comes from CACI’s contract awards, which totaled $5.0 billion during the quarter. Notably, roughly 60% of these awards represent fresh business wins for the company, indicating strong market demand for its national security solutions. The company’s book-to-bill ratio stands at an impressive 2.2x, meaning the firm has roughly $2.20 in future revenue commitments for every dollar of quarterly sales.

“Our differentiated position in the market is evident from both our financial execution and the significant contract activity we’re securing,” said John Mengucci, President and Chief Executive Officer. The quarter saw CACI win multiple substantial awards across defense, intelligence, and border security domains. Notable wins included a $548 million five-year task order for advanced communications testing environments, a $423 million 10-year contract with an Intelligence Community customer for software-defined capabilities, and a $315 million CBP extension for border security IT systems.

Backlog Expansion Fuels Confidence

Total backlog grew to $33.9 billion as of quarter-end, up 4.6% year-over-year from $32.4 billion. More significantly, funded backlog—work with specific budget allocations—surged 25.6% to $5.4 billion, compared with $4.3 billion in the prior year period. This surge in funded work provides greater visibility into near-term revenue generation and reflects strengthened government spending on national security priorities.

Cash Generation Accelerates

Operating cash flow (excluding MARPA adjustments) jumped dramatically to $160.0 million from $60.9 million a year earlier—a 162.8% increase. More tellingly, free cash flow nearly tripled to $143.0 million from $49.4 million, reflecting both improved earnings and disciplined working capital management. Days sales outstanding edged up slightly to 56 days from 47 days, though this remains within healthy collection parameters.

Organic Growth Underpins Expansion

The 11.2% revenue increase was driven by 5.5% organic growth, with the remainder coming from business combinations. Operating income climbed 18.0% to $212.3 million, while gross profit gains supported this operational leverage. Across customer segments, the Department of Defense accounted for 51.5% of revenues ($1.18 billion), with Intelligence Community contributing 26.1% ($596 million) and federal civilian agencies representing 18.0% ($412 million).

Technology Solutions Driving Growth

Revenue by expertise category shows technology-based solutions growing to 56.9% of total revenues ($1.30 billion), up from 52.0% in the prior year, indicating successful repositioning toward higher-value technical offerings. Fixed-price contract revenues grew 28.7% year-over-year to $611 million, suggesting strong execution confidence on complex engineering engagements.

Forward Outlook

For full fiscal year 2026, CACI guided to revenues between $9.2 billion and $9.4 billion, with adjusted net income projected at $605 million to $625 million. Adjusted diluted EPS is expected to reach $27.13 to $28.03 per share. The company also projects free cash flow of at least $710 million for the full year, assuming modest tax benefits from recent legislative changes.

The company’s leadership attributed its confidence to multiple factors: strong customer demand signals, a healthy pipeline of opportunities, continued investments ahead of market demand, and proven execution capabilities. With funded backlog surging and contract awards running well ahead of last year’s pace, CACI appears well-positioned to deliver on its full-year commitments while pursuing longer-term financial targets.

The performance reflects broader resilience in the defense contracting sector, where budget allocations for emerging technologies, cybersecurity, and multi-domain operations continue to expand government spending patterns.