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Why Is CACI International (CACI) Up 1.8% Since Last Earnings Report?

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A month has gone by since the last earnings report for CACI International (CACI - Free Report) . Shares have added about 1.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is CACI International due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for CACI International, Inc. before we dive into how investors and analysts have reacted as of late.

CACI International Q1 Earnings & Revenues Beat Estimates

CACI reported first-quarter fiscal 2026 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.

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

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

VGM Scores

At this time, CACI International has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, CACI International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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