Caci Aims for 60% Free Cash Flow Growth in Fiscal 2026 Amid Software-Defined Strategy

Caci targets over 60% free cash flow per share growth in fiscal 2026 as the company advances its software-defined strategy. In Q4 2025, Caci's strong performance closed the year with 10% revenue growth, driven by its software-defined strategy and growing demand for its services. The company's Q1 2026 guidance anticipates 10% revenue growth and 12% adjusted EBITDA growth.

CACI International Inc. (NYSE:CACI) has presented its fourth quarter and full fiscal year 2025 results, highlighting robust financial performance and a promising outlook for the coming fiscal year. The company, which specializes in national security and government services, reported 16% underlying revenue growth (10% organic), excluding non-recurring revenue from the previous year [1]. This growth was driven by its strategic focus on software-defined capabilities in critical defense areas.

For the fourth quarter specifically, CACI delivered 13.0% year-over-year revenue growth (5.3% organic) and an 11.5% EBITDA margin. Adjusted earnings per share increased by 27% compared to the same quarter last year, with free cash flow of $139 million [1]. The quarterly performance details are illustrated here:

The company's success was attributed to its strategy, differentiation, and resilience, according to John Mengucci, President and Chief Executive Officer [1]. CACI's performance was supported by $10 billion in contract awards during the fiscal year, achieving a trailing twelve-month book-to-bill ratio of 1.1x [1].

Looking ahead to fiscal year 2026, CACI provided optimistic guidance, projecting revenue between $9.2 billion and $9.4 billion, representing growth of 6.6% to 8.9% (4.3% to 6.6% organic). The company expects adjusted net income of $605-$625 million and adjusted diluted EPS of $27.13-$28.03 [1]. Most notably, CACI projects free cash flow of at least $710 million for FY26, representing growth of more than 60% compared to FY25 [1]. The company expects EBITDA margin to be in the "mid 11% range," continuing the positive trend from FY25 [1].

CACI's outlook for FY26 is supported by strong forward indicators, including a backlog of $31 billion (approximately 3.5 years of annualized revenue) and a robust pipeline of submitted bids totaling $16 billion, with approximately 80% for new business [1]. The company's focus on software-based capabilities and investments ahead of customer needs continues to be a key differentiator in the competitive defense and national security markets [1].

For the fourth quarter of fiscal year 2025, CACI International Inc. reported $2.6 billion in contract awards, with over 40% representing new business [3]. The company also maintained a robust backlog of $31.4 billion as of June 30, 2025 [3]. In the Counter-UAS space, CACI noted increasing demand across defense, border security, and international markets [1]. The company continues to invest ahead of customer needs, leveraging decades of experience and thousands of sensors deployed globally [1].

CACI International Inc. is well-positioned to deliver on its guidance for FY26, with approximately 84% of projected revenue already secured through existing business [1]. The company's focus on software-based capabilities and investments ahead of customer needs continues to be a key differentiator in the competitive defense and national security markets [1].

References:
[1] https://www.investing.com/news/company-news/caci-q4-fy25-presentation-16-revenue-growth-projects-60-fcf-increase-for-fy26-93CH-4175112
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_PLXA9C89D:0-caci-q4-revenue-adjusted-eps-beats-analyst-estimates/
[3] https://www.tradingview.com/news/tradingview:42ea989d63b21:0-caci-international-inc-reports-fiscal-2025-results-and-provides-fiscal-2026-guidance/