CACI International Inc (CACI) Market Cap

CACI International Inc (CACI) has a market capitalization of $13.80B, based on the latest available market data.

Financials updated after earnings reported 2025-12-31.

Sector: Technology
Industry: Information Technology Services
Employees: 25000
Exchange: New York Stock Exchange
Headquarters: Reston, VA, US
Website: https://www.caci.com

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📘 CACI INTERNATIONAL INC CLASS A (CACI) — Investment Overview

🧩 Business Model Overview

CACI International Inc., classified under Class A shares, stands as a leading provider of professional services and IT solutions, primarily to U.S. federal government agencies. The company’s business model is rooted in mission-critical support for defense, intelligence, homeland security, and various federal civilian clients. Leveraging a deep bench of technical expertise, CACI builds solutions spanning areas such as enterprise IT, cybersecurity, signals intelligence (SIGINT), electronic warfare, and software engineering. The company positions itself as an essential partner in addressing national security imperatives, digital transformation, and complex technology modernization projects for federal customers. Its workforce, composed largely of highly classified-cleared personnel, enables CACI to win sensitive, multiyear contracts that underpin its recurring revenue framework and reinforce customer stickiness.

💰 Revenue Streams & Monetisation Model

CACI’s revenue is generated primarily through large-scale, multi-year contracts structured under cost-plus, time-and-materials, and fixed-price agreements. These contract vehicles are largely derived from the U.S. Department of Defense (DoD), various intelligence agencies, and civilian federal authorities. The company’s revenue segmentation includes “Enterprise IT (EIT) and mission solutions,” such as network modernization and digital services, and “National Security and Defense Solutions,” covering surveillance, reconnaissance, and advanced data analytics capabilities. Revenues are further de-risked by the largely recurring and mission-critical nature of services provided, resulting in a robust backlog of awarded contracts. In addition to direct government contracts, CACI supplements organic growth through targeted acquisitions that bolster capabilities and expand addressable markets. Value-added monetisation arises from offering proprietary technology and software platforms, enhancing margins and driving differentiation.

🧠 Competitive Advantages & Market Positioning

CACI enjoys a defensible competitive position resulting from several structural advantages: - **Deep Domain Expertise:** Decades-long experience across defense, intelligence, and security environments equip CACI with specialized insights into clients’ evolving missions. - **Security Clearances:** A majority of the company’s workforce maintains active security clearances, a significant barrier to entry, especially in sensitive intelligence and defense work. - **Customer Entrenchment:** The nature of contracts—often mission-critical and long-term—fosters entrenched client relationships, resulting in high renewal and extension rates. - **Integrated Solutions Portfolio:** By offering both IT modernization and advanced defense capabilities under one roof, CACI presents a one-stop solution for complex enterprise and tactical needs. - **Acquisitive Growth Engine:** Acquisitions have consistently added novel technical capabilities and expanded the client base, keeping the company’s offerings at the leading edge. - **Reputation for Execution:** Proven track record and strong past performance scores increase credibility when bidding on competitive, high-value government contracts. These factors help CACI penetrate new mission areas while retaining existing work, contributing to a high contract win rate and healthy funded backlog.

🚀 Multi-Year Growth Drivers

The company is strategically positioned to benefit from enduring secular and macro-level trends: - **Elevated Federal IT & Security Spend:** Government priorities around cyber defense, network modernization, and digital transformation continue to drive higher federal IT budgets, particularly at defense and intelligence agencies. - **Expansion of Electromagnetic and Cyber Warfare:** Geopolitical tensions and sophisticated adversaries drive demand for advanced electronic warfare, signals intelligence, and cyber operations solutions—domains where CACI possesses differentiated expertise. - **Modernization of Legacy Systems:** The federal shift from outdated systems towards cloud, automation, and AI-powered platforms expands opportunities for technology integrators like CACI. - **Mission-Critical Intelligence Analytics:** Increasing intelligence data volume necessitates investments in big data analytics, AI/ML, and sensor fusion—areas where CACI has been investing proactively. - **Mergers & Acquisitions:** Ongoing acquisition strategy enables rapid entry into high-growth niches (e.g., space-based intelligence) and accelerates capability development beyond internal R&D. - **Talent & Security Clearance Retention:** CACI’s ability to attract and retain high-clearance talent allows it to pursue classified work that is inaccessible to most commercial peers. Collectively, these drivers support a steady pipeline of contract opportunities and margin resilience across budgetary cycles.

⚠ Risk Factors to Monitor

- **Federal Budget Volatility:** CACI’s client concentration in the U.S. federal government exposes it to managed delays, contract awards deferrals, or budget sequestration risk. - **Competitive Landscape:** The federal IT and defense services space includes formidable competitors—ranging from larger integrators (Leidos, Booz Allen, SAIC, Raytheon) to niche technology providers—pressuring margins and contract win rates. - **Talent Acquisition & Retention:** The scarcity of high-clearance personnel and rising wage pressures in the technology arena create talent retention and recruiting challenges. - **Acquisition Integration:** Execution risk around integrating acquired businesses can affect cost structures, culture, and operational continuity. - **Regulatory and Compliance Environment:** Evolving procurement rules, contract compliance obligations, and cybersecurity mandates increase the operational complexity and can result in penalties. - **Technological Disruption:** Rapidly changing digital and cyber-physical threat environments require ongoing, substantial R&D and capital investments to stay ahead of client needs.

📊 Valuation & Market View

CACI is often valued based on a blend of earnings multiples (P/E), cash flow metrics, and enterprise-value-to-EBITDA (EV/EBITDA), benchmarked against other government IT and defense services firms. Its relatively stable, recurring revenue model (anchored by a large funded backlog), and robust free cash flow generation support premium multiples in periods of heightened government technology spending. Analysts typically adjust valuation considerations for CACI’s: - Sustained margin profile protected by technology-enabled services and proprietary solutions. - Historic outperformance in contract win and recompete rates. - Accretive M&A contributions and successful integration track record. - Exposure to secular growth verticals like cybersecurity, AI/ML, and digital transformation. - Shareholder returns via selective capital allocation into buybacks and bolt-on acquisitions. Valuation sensitivity remains linked to perceived shifts in U.S. defense and intelligence priorities, government budget trajectory, and CACI’s capability to successfully integrate acquisitions and maintain above-market growth.

🔍 Investment Takeaway

CACI International Inc. represents an entrenched, resilient play on long-term U.S. government modernization and national security demand. Its business model—anchored in critical mission support, security-cleared human capital, and a diverse clientele across high-growth federal sectors—creates a stable platform for recurring, high-visibility revenues. Competitive advantages are reinforced by deep domain expertise, proprietary technology, and long-standing client relationships. The company’s ability to adapt to shifting government technologies and mission imperatives, catalyzed by disciplined M&A, underpins a multi-year growth trajectory. While risk factors—including federal budget uncertainties, talent constraints, and ongoing competitive pressure—require active monitoring, CACI’s robust backlog, differentiated solution set, and strong execution history position it as a core holding for investors seeking exposure to government-led IT, intelligence, and defense transformation trends.

⚠ AI-generated — informational only. Validate using filings before investing.

📢 Show latest earnings summary

CACI Q2 2026 Earnings Summary

Overall summary: CACI delivered strong Q2 results with solid revenue growth, margin expansion, and robust cash generation, and raised FY26 guidance across all key metrics. The technology-led mix—especially in electronic warfare and enterprise modernization—continues to drive differentiation, bookings quality, and margins. While shutdown-related timing effects tempered Q2 book-to-bill and introduce some near-term unevenness, backlog, pipeline, and customer demand remain healthy. The pending ARCA acquisition will lift leverage temporarily, but management expects rapid deleveraging and sees no need to include ARCA in current guidance. Overall tone and outlook are confident and growth-oriented.

Growth

  • Q2 revenue up 5.7% YoY (4.5% organic) to $2.2B
  • FY26 revenue growth outlook raised to 7.8%–10.1% (incl. <2 pts from acquisitions)
  • Technology now ~60% of revenue; electronic warfare (EW) ~ $2B revenue with expanding demand
  • Backlog $33B (+3% YoY); funded backlog +7% YoY
  • TTM book-to-bill 1.3x; 1H FY26 book-to-bill 1.4x

Business development

  • Q2 awards $1.4B; book-to-bill 0.65x; weighted average award duration >6 years
  • Won EW programs of record with Army and Navy; growing demand from Air Force
  • First production order for RMT (counter-space); Merlin counter-UAS demo deployed at southern border
  • Holds the three largest agile software development programs in the federal government
  • $6B of bids under evaluation (>70% new business); ~$20B of submissions expected in next two quarters (>70% new)
  • FY26 revenue mix expected: 95% existing programs, 3% recompetes, 2% new business

Financials

  • Q2 EBITDA margin 11.8% (+70 bps YoY) driven by mix and software-defined tech deliveries
  • Q2 adjusted EPS $6.81 (+14% YoY); lower share count offset higher interest and tax
  • Q2 free cash flow $138M; DSO 57 days
  • FY26 guidance raised: revenue $9.3–$9.5B; EBITDA margin 11.7%–11.8%; adjusted net income $630–$645M
  • FY26 adjusted EPS $28.25–$28.92 (+7%–9% YoY); free cash flow ≥ $725M (implies ~65% FCF/share growth)
  • 2H FY26 EBITDA margin expected consistent with 1H; Q3 revenue in line with current consensus

Capital & funding

  • Net leverage 2.4x TTM EBITDA at Q2; expected to rise to ~4.3x upon ARCA close
  • Plan to delever to low-3x within six quarters post-close; history of rapid deleveraging
  • Intentional pre-deal leverage below target range; strong access to capital and disciplined deployment
  • Lower share count contributed to EPS growth

Operations & strategy

  • Strategy focused on software-defined technology across seven national security markets; investing ahead of customer need
  • Technology mix expected to increase further, supporting margin expansion
  • EW leadership with networked, software-defined sensors; ability to sell via OTAs and FAR Part 12 commercial models
  • Enterprise tech and modernization leadership; agile at scale; AI-based object tracking migrated from IC to CBP
  • CBP modernization delivering ~200% increase in release cadence over 5 years, like-for-like cost reductions, and high quality

Market & outlook

  • Constructive demand environment; ~90% of revenue from national security customers
  • Reconciliation funds beginning to flow post-shutdown
  • Elevated U.S. operational tempo increases demand for EW and rapid, software-driven capabilities
  • Confident in exceeding 3-year FCF target of $1.6B (normalized for R&D capitalization changes) and achieving high end of revenue/margin targets
  • FY26 guidance excludes any contribution from pending ARCA acquisition

Risks & headwinds

  • Lingering impacts from lengthy government shutdown (program timing, delayed government material purchases, slower award decisions)
  • Near-term post-shutdown activity uneven; Q2 book-to-bill below 1.0x
  • Higher interest expense and higher income tax provision
  • Leverage to increase materially at ARCA close

Sentiment: positive

📊 CACI International Inc (CACI) — AI Scoring Summary

📊 AI Stock Rating — Summary

For the quarter ending December 31, 2025, CACI International reported revenues of $2.22 billion and a net income of $123.9 million, resulting in an EPS of $5.61. Free cash flow was robust at $187.3 million. Compared to the same quarter last year, the company demonstrated healthy revenue growth. CACI's total assets reached $8.93 billion against liabilities of $4.8 billion, showing a sturdy equity position with minimal net debt of $41.7 million. Free cash flow generation is strong, supporting past debt repayments totaling $191.6 million. The company did not issue dividends but focused on optimizing its capital structure. Currently, analyst price targets suggest a potential upside to $752 from relative valuation on January 23, 2026.

AI Score Breakdown

Revenue Growth — Score: 8/10

CACI's revenue growth was solid, driven by its vast portfolio of services in defense and IT sectors, marking it as a consistent performer in stable industries.

Profitability — Score: 8/10

Strong profitability with a net margin of approximately 5.6%. The operating income and EPS trends reflect efficient management and operational scalability.

Cash Flow Quality — Score: 8/10

Strong free cash flow exceeding $187 million. The company efficiently manages its capital expenditures and has ample operational cash to support future investments despite no current dividend distribution.

Leverage & Balance Sheet — Score: 8/10

With an equity value of $4.14 billion and minimal net debt of $41.7 million, CACI demonstrates financial resilience and prudent leverage management.

Shareholder Returns — Score: 7/10

While no dividends were paid, and buybacks were minimal, the strong market valuation indicates appreciation potential. Analyst price targets up to $752 suggest further value upside.

Analyst Sentiment & Valuation — Score: 9/10

Analyst targets suggest substantial upside potential relative to current prices, implying the stock may be undervalued at current levels. The sentiment remains positive with high price targets.

⚠ AI-generated — informational only, not financial advice.

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