CACI International Surges 13% on Record Earnings and $5B Contract Awards: Is This the Start of a New Bull Run?

Summary
• CACI International (CACI) rockets 13.1% intraday to $588.34, hitting its 52-week high of $596.95
• Fiscal Q1 results: $2.3B revenue (+11.2% YoY), $6.85 adjusted EPS (+15.5% YoY)
• $5B in new contracts, including $548M DoD virtual test environments and $423M IC software-defined tech

CACI’s explosive move follows a blockbuster earnings report and a record-breaking contract awards quarter. The defense contractor’s shares surged past $588, driven by robust revenue growth, margin expansion, and a $5B backlog boost. With the stock trading near its 52-week high and technical indicators flashing bullish signals, investors are scrambling to assess whether this is a sustainable breakout or a short-term spike.

Earnings Surge and $5B Contract Awards Ignite Bullish Momentum
CACI’s 13.1% intraday rally stems from its fiscal Q1 results, which smashed expectations. Revenue hit $2.3B (+11.2% YoY), while adjusted EPS of $6.85 (+15.5% YoY) outperformed guidance. The $5B in new contracts—60% for new business—signals strong demand for CACI’s defense and intelligence solutions. Notable awards include a $548M DoD virtual test environment and a $423M IC software-defined tech contract. CEO John Mengucci highlighted the company’s "differentiated position" and confidence in FY2026 targets, fueling investor optimism.

Defense Sector Rally as CACI Leads with Record Contract Awards
The Aerospace & Defense sector (XLI: +1.2%) mirrored CACI’s gains, driven by broader defense spending optimism. CACI’s $5B in Q1 awards outpaced peers like Leidos (LDOS) and ManTech (MANT), which reported mid-single-digit revenue growth. The sector’s tailwinds include U.S. government modernization budgets and geopolitical tensions, but CACI’s diversified contract base and 11.7% EBITDA margin position it as a clear outperformer.

Options and ETF Plays for CACI’s Bullish Breakout
• MACD: 7.94 (bullish divergence), RSI: 50.7 (neutral), 200D MA: $444.28 (far below price)
• Bollinger Bands: Price at $588.34 (near upper band of $544.75), 30D Support/Resistance: $492.33–$493.48

CACI’s technicals suggest a continuation of its bullish momentum. The stock is trading above all key moving averages, with RSI neutralizing after the surge. A break above $596.95 (52-week high) could trigger a retest of $620. For options, the CACI20260320C590 call stands out: it offers a 43.66% leverage ratio, 47.3% delta, and 10.17% implied volatility. With a theta of -0.12 and gamma of 0.0106, it benefits from both time decay and price movement. A 5% upside to $617.75 would yield a $29.41 payoff (max(0, 617.75 - 590)).

Top Option 1: CACI20260320C590
• Code: CACI20260320C590
• Type: Call
• Strike: $590
• Expiry: 2026-03-20
• IV: 10.17% (moderate)
• Leverage: 43.66% (high)
• Delta: 0.473 (moderate sensitivity)
• Theta: -0.119 (strong time decay)
• Gamma: 0.0106 (moderate sensitivity to price swings)
• Turnover: 0 (low liquidity)

This call is ideal for aggressive bulls expecting a sustained move above $590. The high leverage amplifies gains if CACI breaks its 52-week high, while the moderate delta ensures it doesn’t overreact to minor pullbacks.

Top Option 2: No second viable option in the provided chain

Action: Aggressive bulls should buy CACI20260320C590 into a breakout above $590. Target $617.75 for a 5% upside. For ETFs, consider XLI (defense sector ETF) to hedge against sector-wide volatility.

Backtest CACI International Stock Performance
Below is an interactive report that summarizes and visualizes the requested back-test. A few implementation details:• Entry rule: go long at today’s close whenever the intraday high ≥ previous-day close × 1.13 • Exit rule: close the position after 5 trading days (chosen as a concise “post-event window” so you can quickly see the short-term follow-through). • Test window: 2022-01-01 → 2025-10-23, ticker CACI (NYSE). • Price series: daily close. • No additional stop-loss / take-profit limits were set; only a 5-day maximum holding period was applied.Feel free to explore the statistics in the panel; let me know if you would like to adjust any parameters (e.g. holding period, risk controls, or a different entry threshold).

CACI’s Breakout: A New Era of Defense Dominance?
CACI’s 13.1% surge is a watershed moment, driven by record earnings and $5B in new contracts. Technicals and fundamentals align for a continuation of this rally, with the 52-week high at $596.95 as the next target. Investors should monitor the CACI20260320C590 call for leveraged exposure and watch for a break above $596.95 to confirm the trend. Meanwhile, sector leader Lockheed Martin (LMT) is up 0.89%, reinforcing the defense sector’s strength. For CACI, the path is clear: hold above $542.20 (intraday low) to sustain momentum. Act now: Buy the breakout above $590 or the CACI20260320C590 call for a high-leverage play.