CACI International Q2 Earnings Beat Estimates, Revenues Miss

CACI International Inc. CACI reported mixed second-quarter fiscal 2026 results, wherein the bottom line surpassed the Zacks Consensus Estimate, while the top line lagged the same.

CACI International reported second-quarter non-GAAP earnings of $6.81 per share, which beat the Zacks Consensus Estimate by 6.26%. The bottom line increased 14.5% on a year-over-year basis, primarily driven by higher revenues and efficient cost management.

CACI International has a strong history of beating earnings estimates. The stock surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 14.46%.

CACI International, Inc. Price, Consensus and EPS Surprise

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

In the second quarter, CACI reported revenues of $2.22 billion, which increased 5.7% from the prior-year quarter, primarily driven by 4.5% organic growth. However, the top line missed the consensus mark by 2.15 %.

In the second quarter of fiscal 2026, contract awards totaled $1.4 billion, with approximately 70% for new business. Awards exclude ceiling values of multi-award, indefinite delivery and indefinite quantity contracts.

The total backlog as of Dec. 31, 2025 was $32.8 billion, up 3.8% from $31.8 billion reported a year ago. The funded backlog was $4.4 billion, up 7.3% from $4.1 billion reported a year ago. Our estimates for the total backlog and funded backlog were pegged at $34.3 billion and $4.8 billion, respectively.

CACI’s Q2 Details

In terms of the customer mix, the Department of Defense contributed 51.8% to total revenues in the reported quarter. Intelligence Community made up for 24.3%, Federal Civilian Agencies accounted for 19.8%, and Commercial and other customers accounted for 4.1%. Revenues from the Department of Defense, Intelligence Community, Federal Civilian Agencies, and Commercial and Other customers increased 3%, 2.1%, 19.9% and 3.4%, respectively.

The Prime Contractor and Subcontractor accounted for 90.5% and 9.5% of total revenues, respectively. Revenues from the Prime Contractor soared 7.9%, while Subcontractor revenues plunged 11.4%.

In terms of contract type, cost-plus-fee-type, fixed-price, and time and material-type contracts contributed 59%, 26.9% and 14.1%, respectively, to total revenues. Revenues from cost-plus-fee-type and time-and-materials contracts grew 5.6% and 21.5%, respectively. However, sales from the fixed-price type contracts declined 0.8%.

Expertise and Technology accounted for 41.6% and 58.4% of total revenues, respectively. Revenues from Expertise declined 0.2%, while those from the Technology segment soared 10.4%.

The operating income for the quarter amounted to $206.5 million, up 13.9% year over year. The operating margin expanded 70 basis points (bps) to 9.3%. Adjusted EBITDA increased 12.8% year over year to $262.6 million, while the adjusted EBITDA margin expanded 70 bps to 11.8%.

CACI’s Balance Sheet & Cash Flow

As of Dec. 31, 2025, CACI had cash and cash equivalents of $423 million compared with the previous quarter’s $133 million.

The total long-term (net of the current portion) debt was $2.92 billion, down from $2.71 billion as of Sept. 30, 2025.

In the second quarter, the company generated operating cash flow (excluding mini-automatic radar plotting aid or MARPA) and free cash flow of $154.2 million and $138.2 million, respectively. In the first half of fiscal 2026, it generated operating cash flow (excluding MARPA) and free cash flow of $314.2 million and $281.1 million, respectively.

CACI Raises Fiscal 2026 Guidance

CACI International raised its guidance for fiscal 2026. For fiscal 2026, CACI now anticipates revenues between $9.3 billion and $9.5 billion, up from the previous range of $9.2-$9.4 billion. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $9.36 billion, suggesting an increase of 8.5% year over year.

Adjusted net income for fiscal 2026 is now projected in the band of $630-$645 million, up from the earlier guidance of $605-$625 million. The company now estimates non-GAAP earnings per share in the range of $28.25-$28.92, up from the previous projection of $27.13-$28.03. The consensus mark for the bottom line is pinned at $28.04 per share, calling for a year-over-year increase of 5.9%.

Free cash flow is anticipated to be at least $725 million in fiscal 2026, up from the earlier guidance of at least $710 million.

CACI’s Zacks Rank and Stocks to Consider

Currently, CACI carries a Zacks Rank #4 (Sell).

Analog Devices ADI, FormFactor FORM and Micron Technology MU are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Analog Devices, FormFactor and Micron Technology each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Analog Devices’ fiscal 2026 earnings is pegged at $10.01 per share, revised upward by 9 cents over the past seven days and suggests a year-over-year increase of 28.5%. Analog Devices’ shares have soared 33.6% over the past year.

The Zacks Consensus Estimate for FormFactor’s 2026 earnings has been revised upward by 3 cents over the past seven days to $1.53 per share, calling for an increase of 30.6% year over year. FormFactor shares have surged 94.7% in the trailing 12 months.

The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has moved northward by 5.1% in the past 30 days, implying 297.5% year-over-year growth. Micron Technology shares have rallied 271.2% over the past year.

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