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Why Is CACI International (CACI) Down 6.9% 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 lost about 6.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CACI International due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
CACI International Q3 Earnings Beat Estimates, Revenues Rise Y/Y
CACI reported third-quarter fiscal 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.
CACI reported third-quarter fiscal 2026 non-GAAP earnings of $7.27 per share, which beat the Zacks Consensus Estimate by 5.4%. The bottom line increased 16.7% on a year-over-year basis, primarily driven by higher revenues and operating income, partially offset by higher tax provisions and higher interest expenses.
In the third quarter of fiscal 2026, CACI reported revenues of $2.4 billion, which surpassed the consensus mark by 0.21%. The top line increased 8.5% from the prior-year quarter.
CACI’s Q3 FY26 Details
In the third quarter of fiscal 2026, contract awards totaled $2.2 billion, reflecting continued strong demand and a healthy pipeline. The company reported a book-to-bill ratio of 0.9x for the quarter and 1.2x on a trailing 12-month basis, with a weighted average contract duration of more than six years.
Total backlog was $33.4 billion, marking a 6.4% year-over-year increase, representing approximately 3.6 years of annualized revenue visibility. Funded backlog grew even faster, increasing 19% year over year, reflecting solid near-term revenue support.
From a revenue composition perspective, CACI continues to derive the vast majority of its business from existing programs, which accounted for 98% of revenues, while recompetes and new business each contributed about 1%, reflecting a highly stable and recurring revenue base.
Profitability remained healthy, supported by execution and mix benefits. Adjusted EBITDA margin expanded to 12.3%, up 60 basis points year over year, while adjusted EPS grew 17% year over year. Operating income growth was driven by higher revenues, improved execution and lower share count, partially offset by higher interest expense and taxes.
CACI’s Balance Sheet & Cash Flow
As of March 31, 2026, CACI had cash and cash equivalents of $158 million compared with the previous quarter’s $423 million.
The company continues to maintain a solid financial position, though leverage increased to approximately 4.2x (pro forma) following the ARKA acquisition. Management expects leverage to return to the low 3x range within six quarters, supported by strong cash flow generation.
CACI’s operating cash flow was $504 million, and free cash flow was $221 million in the third quarter of fiscal 2026.
CACI Updates Fiscal 2026 Guidance
Buoyed by strong execution and demand visibility, CACI raised its fiscal 2026 revenue guidance to be in the band of $9.5-$9.6 billion, up from the prior range of $9.3-$9.5 billion, implying 10% to 11% growth.
However, due to acquisition-related costs and higher interest expenses, the company lowered adjusted net income guidance to $615-$630 million from the earlier projection of $630-$645 million.
Adjusted EPS is now expected in the range of $27.70-$28.38 compared with the earlier guidance of $28.25-$28.92.
CACI reaffirmed its free cash flow guidance of $725 million, despite higher capital expenditures (~$95 million) and integration costs, highlighting the strength of its cash-generating model.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -5.65% due to these changes.
VGM Scores
At this time, CACI International has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.
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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, 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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Why Is CACI International (CACI) Down 6.9% Since Last Earnings Report?
A month has gone by since the last earnings report for CACI International (CACI - Free Report) . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CACI International due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
CACI International Q3 Earnings Beat Estimates, Revenues Rise Y/Y
CACI reported third-quarter fiscal 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.
CACI reported third-quarter fiscal 2026 non-GAAP earnings of $7.27 per share, which beat the Zacks Consensus Estimate by 5.4%. The bottom line increased 16.7% on a year-over-year basis, primarily driven by higher revenues and operating income, partially offset by higher tax provisions and higher interest expenses.
In the third quarter of fiscal 2026, CACI reported revenues of $2.4 billion, which surpassed the consensus mark by 0.21%. The top line increased 8.5% from the prior-year quarter.
CACI’s Q3 FY26 Details
In the third quarter of fiscal 2026, contract awards totaled $2.2 billion, reflecting continued strong demand and a healthy pipeline. The company reported a book-to-bill ratio of 0.9x for the quarter and 1.2x on a trailing 12-month basis, with a weighted average contract duration of more than six years.
Total backlog was $33.4 billion, marking a 6.4% year-over-year increase, representing approximately 3.6 years of annualized revenue visibility. Funded backlog grew even faster, increasing 19% year over year, reflecting solid near-term revenue support.
From a revenue composition perspective, CACI continues to derive the vast majority of its business from existing programs, which accounted for 98% of revenues, while recompetes and new business each contributed about 1%, reflecting a highly stable and recurring revenue base.
Profitability remained healthy, supported by execution and mix benefits. Adjusted EBITDA margin expanded to 12.3%, up 60 basis points year over year, while adjusted EPS grew 17% year over year. Operating income growth was driven by higher revenues, improved execution and lower share count, partially offset by higher interest expense and taxes.
CACI’s Balance Sheet & Cash Flow
As of March 31, 2026, CACI had cash and cash equivalents of $158 million compared with the previous quarter’s $423 million.
The company continues to maintain a solid financial position, though leverage increased to approximately 4.2x (pro forma) following the ARKA acquisition. Management expects leverage to return to the low 3x range within six quarters, supported by strong cash flow generation.
CACI’s operating cash flow was $504 million, and free cash flow was $221 million in the third quarter of fiscal 2026.
CACI Updates Fiscal 2026 Guidance
Buoyed by strong execution and demand visibility, CACI raised its fiscal 2026 revenue guidance to be in the band of $9.5-$9.6 billion, up from the prior range of $9.3-$9.5 billion, implying 10% to 11% growth.
However, due to acquisition-related costs and higher interest expenses, the company lowered adjusted net income guidance to $615-$630 million from the earlier projection of $630-$645 million.
Adjusted EPS is now expected in the range of $27.70-$28.38 compared with the earlier guidance of $28.25-$28.92.
CACI reaffirmed its free cash flow guidance of $725 million, despite higher capital expenditures (~$95 million) and integration costs, highlighting the strength of its cash-generating model.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -5.65% due to these changes.
VGM Scores
At this time, CACI International has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.
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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, CACI International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.