CACI Fiscal Q4 2026 Earnings: Revenue Rises 17.6% as GAAP EPS Slips

CACI International (NYSE: CACI) reported fiscal Q4 2026 revenue of $2.71 billion, up 17.6% year over year, while diluted EPS slipped 1.3% to $7.05 from $7.14. Organic revenue grew 11.6% and operating income increased 31.7%, but higher interest expense related to the ARKA acquisition and a larger tax provision held back GAAP earnings. Free cash flow rose 67.4% to $232.9 million, primarily reflecting working-capital management.

Core earnings data

The results cover the three months ended June 30, 2026, and were released on August 5. Revenue growth included an 11.6% organic increase, while operating profit and non-GAAP EBITDA grew faster than revenue.

Net income and GAAP EPS moved in the opposite direction because gains from higher revenue and gross profit were offset below the operating line. The table uses GAAP figures unless identified as non-GAAP.

Business and customer performance

The customer group identified by CACI as the Department of War generated the largest dollar increase, contributing $275.7 million of the company’s $404.9 million overall revenue gain. Federal civilian agencies recorded the second-fastest percentage growth among the government customer groups.

Viewed by offering, technology revenue rose 23.7% to $1.66 billion and increased to 61.2% of quarterly revenue from 58.2%. Expertise revenue grew 9.1% to $1.05 billion, reducing its share to 38.8% from 41.8%.

The contract mix also changed materially. Fixed-price revenue increased 51.9% to $941.6 million and represented 34.8% of revenue, up from 26.9%. Cost-plus-fee revenue was nearly flat at $1.40 billion, while its share declined to 51.5% from 60.1%. Time-and-materials revenue rose 23.9% to $372.0 million.

CACI recorded $1.6 billion of fourth-quarter contract awards, approximately 40% of which represented new business. At June 30, total backlog was $32.0 billion, up 1.9%, while funded backlog increased 28.6% to $5.4 billion. Full-year awards totaled $10.2 billion, producing a 1.1 times book-to-bill ratio.

Operating gains did not translate into GAAP EPS growth

Based on the reported amounts, operating margin expanded to approximately 10.0% from 9.0%, and non-GAAP EBITDA margin rose to about 13.0% from 11.5%. CACI attributed the operating-income increase to higher revenue and gross profit.

Those gains were offset by higher costs below operating income. Interest expense and other, net, increased 57.7% to $72.1 million from $45.7 million, with the company linking the increase to the ARKA acquisition. The quarterly tax provision also rose to $43.4 million from $3.1 million. Consequently, income before taxes increased 24.3%, but net income declined 0.7% and diluted EPS fell 1.3%.

Adjusted diluted EPS increased because that non-GAAP measure excludes intangible amortization expense and its related tax effect. The difference between GAAP and adjusted results is therefore particularly relevant following acquisition activity.

Cash flow and balance sheet

Operating cash flow excluding the Master Accounts Receivable Purchase Agreement, a non-GAAP measure, rose 67.4% to $279.7 million. CACI said strong working-capital management was the main driver. Days sales outstanding, also excluding the MARPA impact, improved to 55 days from 56.

CACI ended fiscal 2026 with $191.8 million in cash and cash equivalents, compared with $106.2 million a year earlier. However, current and long-term debt totaled approximately $4.90 billion, up from $2.92 billion. Full-year acquisition payments were $2.64 billion, providing context for both the higher debt balance and increased interest expense.

Fiscal 2027 guidance

CACI issued initial fiscal 2027 guidance that calls for double-digit revenue and adjusted earnings growth, along with at least $900 million of free cash flow. Management said it expects revenue growth, margin expansion, and efficient working-capital management to support cash generation. The guidance assumes 22.3 million diluted weighted-average shares.

The approximate growth rates below compare the guidance with reported fiscal 2026 results.

Recent insider transactions

The supplied six-month insider summary shows 12,117 shares purchased across 18 transactions and 2,484 shares sold across three transactions, for a net increase of 9,633 shares. Among the latest individual records with a reported transaction amount, director Susan M. Gordon completed the following sale; the data does not provide a share count.

The aggregate and individual records describe transaction activity but do not establish insiders’ reasons or views about the company’s valuation.

Risks investors should monitor

• Acquisition-related financing costs: Quarterly interest expense and other, net, rose 57.7%, while total debt increased to approximately $4.90 billion. Continued financing costs could limit how much operating growth reaches net income.
• Tax-provision variability: The tax provision increased from $3.1 million to $43.4 million and was a significant reason operating-income growth did not produce GAAP EPS growth.
• Government customer concentration: Approximately 95% of fourth-quarter revenue came from the three federal customer categories. Changes in appropriations, procurement timing, contract awards, or government priorities could affect revenue and backlog conversion.
• Greater fixed-price exposure: Fixed-price contracts increased to 34.8% of quarterly revenue from 26.9%. Execution or cost issues on these contracts could place pressure on profitability because CACI has less ability to pass through overruns.
• Total backlog growth: Funded backlog rose sharply, but total backlog increased only 1.9%. The pace of future awards and the conversion of funded backlog into revenue will be important as CACI targets continued double-digit growth.

Summary

CACI’s fiscal fourth quarter combined 17.6% revenue growth, expanding operating profitability, and materially higher free cash flow. Technology offerings, Department of War revenue, and fixed-price work were the principal areas of growth, while acquisition-related interest expense and a higher tax provision prevented operating gains from reaching GAAP EPS. Fiscal 2027 guidance shifts the focus to whether CACI can convert its funded backlog into double-digit revenue growth, expand margins, and generate at least $900 million of free cash flow while managing its higher debt load.