CACI International 2025 Q4 Earnings Strong Performance as Net Income Surges 17.2%

CACI International reported its fiscal 2025 Q4 earnings on August 7, 2025, with revenue and net income both exceeding expectations. The company raised full-year guidance for FY 2026, reflecting confidence in continued growth.

Revenue
CACI's Q4 revenue surged 13.0% year-over-year to $2.30 billion, driven by robust performance across its key segments. The Department of Defense remained the largest contributor, generating $1.74 billion in revenue. Federal civilian agencies accounted for $447.46 million, while commercial and other revenue totaled $114.43 million. The growth reflects strong demand for defense and government technology solutions.

Earnings/Net Income
Earnings per share (EPS) rose 18.9% to $7.18 in 2025 Q4, a strong indicator of the company's improved profitability. Net income also climbed 17.2% to $157.85 million, building on a 20-year track record of consistent profitability. These results underscore CACI's ability to deliver strong returns amid a challenging fiscal environment.

Price Action
The stock price of CACI International has edged up 2.74% during the latest trading day, has edged up 1.39% during the most recent full trading week, and has dropped 5.88% month-to-date.

Post-Earnings Price Action Review
The strategy of buying CACI when revenue beats and holding for 30 days delivered strong results. The strategy achieved a 92.12% return, surpassing the benchmark return of 88.81% by 3.31%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.56, the strategy also demonstrated robust risk management, making it a reliable approach for capital growth.

CEO Commentary
John S. Mengucci, CEO of CACI International, highlighted the company’s strong Q4 and full-year 2025 performance, with 16% underlying revenue growth, 11.2% EBITDA margin, and $442 million in free cash flow. He emphasized the success of CACI’s strategy to focus on software-defined solutions and national security priorities, citing examples like the TLS Manpack and counter-UAS systems. Mengucci noted that CACI is well-positioned to meet the government’s demand for speed, efficiency, and modernization, with initiatives in enterprise software, spectrum dominance, and space technologies. He expressed optimism about fiscal 2026, leveraging the recent reconciliation funding and a strong $10 billion in contract awards, while underscoring CACI’s resilience in potential government fiscal uncertainties.

Guidance
CACI International guided for FY 2026 revenue of $9.2 billion to $9.4 billion (8% growth at midpoint), EBITDA margin in the mid-11% range, and free cash flow per share growth exceeding 60%. The company expects adjusted diluted EPS of $27.13 to $28.03, with free cash flow of at least $710 million. The guidance reflects strong backlog visibility, $16 billion in submitted bids, and confidence in executing high-value programs like IPPS-Army and NCAPS. The company anticipates 84% of FY 2026 revenue from existing programs, with 11% from recompetes and 5% from new business.

Additional News
In the three weeks following the August 7, 2025, earnings release, CACI announced several strategic and operational updates. The company completed $150 million of share repurchases, demonstrating its commitment to returning capital to shareholders. On July 15, 2025, CACI announced the election of Lisa S. Disbrow as Chair of the Board of Directors, a move intended to support the CEO’s ongoing growth strategy. Additionally, CACI advanced to Phase 2 of the U.S. Space Force's Enterprise Space Terminal (EST) program, a $100 million initiative to develop laser-based space communication terminals. These developments highlight CACI’s continued focus on innovation, leadership, and strategic growth in its core markets.