CACIs Earnings Surge Driven by Defense and Civilian Wins

CACI International (NYSE: CACI) reported fiscal 2026 Q2 earnings on Jan 21, 2026, exceeding Wall Street expectations with adjusted EPS of $6.81 and raising full-year guidance. The company demonstrated robust operational performance, driven by 5.7% year-over-year revenue growth and 14.5% EPS growth, reflecting its strategic focus on national security and technology innovation.

Revenue

The total revenue of CACI International increased by 5.7% to $2.22 billion in 2026 Q2, up from $2.10 billion in 2025 Q2. Federal civilian agencies drove growth with a 19.9% year-over-year increase to $438.6 million, while Department of Defense revenue rose 3% to $1.14 billion. The company’s backlog also expanded by 3.1% year-over-year to $32.8 billion, supported by $1.4 billion in new contract awards.

Earnings/Net Income

CACI International’s EPS rose 14.5% to $5.61 in 2026 Q2 from $4.90 in 2025 Q2, marking continued earnings growth. Meanwhile, the company’s profitability strengthened with net income of $123.86 million in 2026 Q2, marking 12.7% growth from $109.94 million in 2025 Q2. The EPS growth of 14.5% indicates strong earnings momentum.

Post-Earnings Price Action Review

The strategy of buying CACI International shares after its revenue raised Q/Q on the financial report released date and holding for 30 days delivered moderate performance. The 3-year annualized return was 12.5%, which is decent but not outstanding. The strategy capitalized on CACI's growth potential, as indicated by its strong revenue performance and positive outlook.

CEO Commentary

John Mengucci, CACI President and Chief Executive Officer, highlighted the company’s “strong second quarter results” driven by 5.7% YoY revenue growth and 14.5% YoY EPS growth, emphasizing “healthy free cash flow” and “solid EBITDA margin.” He underscored strategic investments in electronic warfare, Agile software development, and the planned acquisition of ARKA Group to strengthen national security capabilities. Mengucci noted robust contract awards ($1.4 billion, 70% new business), a 3.1% YoY backlog increase, and a 3-year financial target trajectory, expressing optimism about the company’s positioning to “deliver on commitments to shareholders” while addressing customer needs.

Guidance

CACI raised FY2026 guidance, excluding the ARKA Group acquisition, with revenue targets of $9.3–$9.5 billion (prior: $9.2–$9.4 billion), adjusted net income of $630–$645 million (prior: $605–$625 million), adjusted diluted EPS of $28.25–$28.92 (prior: $27.13–$28.03), and free cash flow of at least $725 million (prior: $710 million). The guidance reflects 5.7% organic growth, EBITDA margin expansion, and tax benefits from regulatory changes, with funded backlog growth (7.3% YoY) and $265 million in new intelligence community contracts cited as key drivers.

Additional News

CACI International announced a $2.6 billion all-cash acquisition of ARKA Group L.P., enhancing its capabilities in space-based sensors and software processing. The company also secured a $416 million U.S. Navy contract for systems sustainment and modernization and received a $265 million award for intelligence community work. These moves underscore CACI’s strategic focus on expanding its national security technology portfolio.