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1. Company Snapshot

1.a. Company Description

CACI International Inc, together with its subsidiaries, provides expertise and technology to enterprise and mission customers in support of national security missions and government modernization/transformation in the intelligence, defense, and federal civilian sectors.It operates in two segments, Domestic Operations and International Operations.The Domestic Operations segment offers information solutions and services to the U.S. federal government agencies and commercial enterprises in the areas, such as digital solutions, C4ISR, cyber and space, engineering services, enterprise IT, and mission support.


The International Operations segment provides a range of IT services, proprietary data, and software products to the commercial and government customers in the United Kingdom, continental Europe, and internationally.The company designs, implements, protects, and manages secure enterprise IT solutions.It also offers software-defined, full-spectrum cyber, electronic warfare, and counter-unmanned aircraft system solutions; and platform integration and modernization and sustainment, as well as system engineering, naval architecture, training and simulation, and logistics engineering.


In addition, the company provides enterprise cloud solutions for classified and unclassified networks; and intelligence support that ensures continuous advances in collection, analysis, and dissemination to optimize decision-making.CACI International Inc was founded in 1962 and is headquartered in Reston, Virginia.

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1.b. Last Insights on CACI

CACI International's recent performance was driven by strong Q1 2026 earnings, with an 11% sales growth and solid cost control. The company's alignment with mission-critical government programs and robust contract wins, including a $416 million task order to sustain and modernize systems for the U.S. Navy, support resilience. Additionally, CACI's evolution into a technology-led defense and intelligence platform, deepened by the ARKA acquisition, strengthens growth quality and strategic relevance. Its Secure Software-Defined Network Modernization capabilities awarded by the U.S. Space Force also contribute to growth.

1.c. Company Highlights

2. CACI International's Strong Q2 FY2026 Earnings: A Showcase of Operational Excellence

CACI International reported a robust second-quarter fiscal year 2026 performance, with revenue growing 6% and EBITDA margin coming in at 11.8%. The company's earnings per share (EPS) stood at $6.81, surpassing analyst estimates of $6.41. The strong EPS performance was complemented by free cash flow generation of $138 million. CACI's revenue growth and margin expansion underscore its operational efficiency and ability to execute on its strategic priorities.

Publication Date: Jan -23

📋 Highlights
  • Revenue & EBITDA Growth:: Q2 revenue rose 6%, with EBITDA margin at 11.8%, while fiscal 2026 guidance now targets 8-10% revenue growth and $725M+ free cash flow.
  • Free Cash Flow & Awards:: Generated $138M free cash flow, secured $1.4B in awards, and raised FY2026 free cash flow guidance by 65% to $725M+.
  • ARCA Acquisition Impact:: Leverage ratio to rise from 2.4x to 4.3x post-acquisition, but company has a track record of rapid deleveraging post-deals.
  • Backlog & Bid Pipeline:: $33B backlog grew 3% YoY, with $6B in bids under evaluation and $20B expected in bids over next two quarters.
  • Strategic Market Position:: $2B in electronic warfare revenue, leadership in agile software development, and expansion into space via ARCA acquisition.

Contract Wins and Backlog

The company secured $1.4 billion in new awards during the quarter, representing a book-to-bill ratio of 0.65 times. CACI's backlog stood at $33 billion, a 3% increase from the previous year, with its funded backlog rising 7% over the same period. The weighted average duration of awards in Q2 was over six years, highlighting the company's ability to secure long-term contracts. The recent win of the JTMS program, a $1.6 billion, 10-year contract, is a significant addition to the backlog and is expected to drive growth.

Guidance and Outlook

CACI raised its fiscal 2026 guidance, expecting free cash flow of at least $725 million, revenue growth of nearly 8% to 10%, and an EBITDA margin in the 11.7% to 11.8% range. The company's guidance implies a 65% growth in free cash flow per share. The acquisition of ARCA is expected to enhance CACI's capabilities in the space market and drive future growth.

Valuation and Growth Prospects

With a P/E Ratio of 28.58 and an EV/EBITDA multiple of 17.34, CACI's valuation reflects its strong growth prospects. Analysts estimate next year's revenue growth at 6.5%, indicating a steady trajectory. The company's focus on delivering technology-driven solutions to the Department of Defense and Intelligence Community positions it for long-term growth. CACI's ROIC of 8.62% and ROE of 13.14% demonstrate its ability to generate returns on capital and equity.

Operational Efficiency and Margin Expansion

CACI's margins have been strong, with indirect costs below 21% of revenues for the third quarter in a row. The company prioritizes free cash flow generation and may invest in opportunities that accelerate top-line growth. The acquisition of ARCA and SA Photonics will contribute to CACI's growth and margin performance. The company's long-term margin range is not yet defined, but recent incremental margins suggest potential for further growth.

3. NewsRoom

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CACI Named a 2026 Fortune World's Most Admired Company for the Ninth Consecutive Year

Jan -28

Source: businesswire.com

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CACI to Strengthen U.S. Army Readiness and Spectrum Dominance with Next-Gen Electronic Warfare

Jan -27

Source: businesswire.com

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CACI International Inc (CACI) Q2 2026 Earnings Call Transcript

Jan -22

Source: seekingalpha.com

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CACI International Q2 Earnings Beat Estimates, Revenues Miss

Jan -22

Source: zacks.com

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Compared to Estimates, CACI International (CACI) Q2 Earnings: A Look at Key Metrics

Jan -22

Source: zacks.com

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CACI International (CACI) Q2 Earnings Beat Estimates

Jan -21

Source: zacks.com

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CACI Reports Results for Its Fiscal 2026 Second Quarter and Raises Guidance for All Metrics

Jan -21

Source: businesswire.com

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CACI International Likely To Report Higher Q4 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Jan -21

Source: benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.53%)

6. Segments

Domestic Operations

Expected Growth: 6.5%

CACI International Inc's 6.5% domestic operations growth is driven by increasing demand for digital transformation, cloud migration, and cybersecurity services from federal agencies, as well as growing investments in artificial intelligence, data analytics, and enterprise IT modernization.

International Operations

Expected Growth: 7.5%

CACI International Inc's 7.5% growth in International Operations is driven by increasing demand for cybersecurity and IT solutions from foreign governments and commercial clients, expansion into new markets, and strategic partnerships. Additionally, the company's expertise in cloud-based services, artificial intelligence, and data analytics is fueling growth in this segment.

7. Detailed Products

Enterprise IT

CACI International Inc. provides a range of enterprise IT solutions, including cloud computing, cybersecurity, data analytics, and IT modernization services to help government agencies and commercial organizations improve their IT infrastructure and operations.

Intelligence Services

CACI provides intelligence services, including intelligence analysis, operations, and training to support national security and defense agencies.

Cybersecurity Solutions

CACI offers a range of cybersecurity solutions, including threat detection, incident response, and penetration testing to help organizations protect against cyber threats.

Logistics and Supply Chain Management

CACI provides logistics and supply chain management services, including procurement, inventory management, and distribution to support government and commercial clients.

Healthcare and Biometrics

CACI offers healthcare and biometrics solutions, including electronic health records, medical research, and biometric identification to support government and commercial healthcare organizations.

Communications and Networking

CACI provides communications and networking services, including network design, implementation, and management to support government and commercial clients.

Business Systems and Services

CACI offers business systems and services, including business process re-engineering, financial management, and human capital management to support government and commercial clients.

8. CACI International Inc's Porter Forces

Forces Ranking

Threat Of Substitutes

CACI International Inc has a moderate threat of substitutes due to the presence of alternative solutions and services in the IT and professional services industry.

Bargaining Power Of Customers

CACI International Inc has a low bargaining power of customers due to the fragmented nature of its customer base and the lack of concentration of buyers in the industry.

Bargaining Power Of Suppliers

CACI International Inc has a moderate bargaining power of suppliers due to the presence of multiple suppliers in the industry and the company's moderate dependence on a few key suppliers.

Threat Of New Entrants

CACI International Inc has a low threat of new entrants due to the high barriers to entry in the industry, including the need for significant capital investment and specialized expertise.

Intensity Of Rivalry

CACI International Inc operates in a highly competitive industry with many established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.59%
Debt Cost 5.20%
Equity Weight 61.41%
Equity Cost 8.21%
WACC 7.05%
Leverage 62.83%

11. Quality Control: CACI International Inc passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Leidos

A-Score: 6.0/10

Value: 4.6

Growth: 6.6

Quality: 5.9

Yield: 2.0

Momentum: 8.0

Volatility: 9.0

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Jack Henry

A-Score: 5.5/10

Value: 2.5

Growth: 5.7

Quality: 8.4

Yield: 2.0

Momentum: 5.0

Volatility: 9.7

1-Year Total Return ->

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CACI

A-Score: 5.3/10

Value: 3.8

Growth: 6.2

Quality: 5.2

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

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Dolby Laboratories

A-Score: 5.1/10

Value: 3.5

Growth: 3.3

Quality: 8.5

Yield: 3.0

Momentum: 3.0

Volatility: 9.0

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SAIC

A-Score: 5.0/10

Value: 6.6

Growth: 5.4

Quality: 7.1

Yield: 3.0

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

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ASGN

A-Score: 4.1/10

Value: 7.7

Growth: 6.2

Quality: 5.2

Yield: 0.0

Momentum: 0.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

618.5$

Current Price

618.5$

Potential

-0.00%

Expected Cash-Flows