Caci International Inc /De/ (CACI) Stock Analysis and Metrics

Caci International

NYSE: CACI

$487.17 ▲ +6.56 (+1.36%)

At close: Jul 24, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap10.62 Bn

P/E19.79

P/S1.16

Div. Yield0.00

ROIC (Qtr)0.03

Total Debt (Qtr)5.18 Bn

Revenue Growth (1y) (Qtr)8.49

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About

CACI International Inc is a holding company whose operations are conducted through subsidiaries primarily located in the United States and Europe. The company provides distinctive expertise and differentiated technology to customers in support of national security within the intelligence defense and federal civilian sectors both domestically and internationally. Its offerings combine skilled personnel with advanced solutions such as agile software development data platforms artificial intelligence enterprise resource planning electromagnetic spectrum capabilities photonics and network modernization. CACI International Inc was founded in 1962 as a simulation technology company and has evolved into a leading provider of mission critical services for government and commercial clients. The firm’s focus is on delivering tailored expertise and technology that address complex national security challenges.

CACI International Inc generates revenue by selling its expertise and technology solutions to government and commercial clients. Revenue is derived from providing talent with technical and functional knowledge including software development data analysis operations support naval architecture engineering life cycle support intelligence and special operations support and network exploitation analysis. Additionally the company offers technology products such as agile software development using open modern architectures and DevSecOps advanced data platforms augmented by artificial intelligence enterprise resource planning systems electromagnetic spectrum capabilities photonics and network modernization. The firm invests ahead of customer need with research and development to create unique and differentiated technology addressing critical national security needs. Its primary customers are agencies and departments of the U. S. government foreign governments and commercial enterprises. Revenue is also earned through long term contracts task orders and vehicle agreements that span multiple years and domains.

CACI International Inc operates in a highly competitive industry that includes many firms some larger with greater financial resources. No single competitor dominates the markets for expertise and technology that the company serves. The company holds a relatively small share of the addressable market and seeks to grow organically and through strategic acquisitions. Its competitive advantages stem from a strong record of program delivery long term customer relationships deep domain knowledge of agency policies and a market focused business development organization that pursues major program opportunities. Additionally its investment in research and development creates differentiated technology that addresses evolving national security needs. The firm also benefits from past performance evaluations responsiveness to proposal requirements and pricing considerations that influence government contract awards.

CACI International Inc serves primarily agencies and departments of the U. S. government across defense intelligence and civilian functions. It also contracts with foreign governments and commercial enterprises particularly in the United Kingdom and continental Europe. The company’s client base includes organizations seeking command control communications intelligence cyber digital solutions enterprise IT mission and engineering support space and spectrum superiority capabilities. Specific customer names are not disclosed in the filing but the firm works with dozens of federal agencies and numerous international partners. Its contracts support missions ranging from battlefield communications to satellite data analysis and infrastructure modernization.

Investment Thesis

▲ Bull case

CACI International is positioned to capitalize on the accelerating demand for space-based sensing and agentic AI capabilities following the ARKA acquisition, which management highlighted as providing "another $2 billion of noncompetitive franchise programs" not yet reflected in backlog, creating significant future revenue visibility that the market is underestimating. The integration of ARKA’s exquisite space-based imaging sensor technology with CACI’s legacy space portfolio under unified leadership enables cross-selling opportunities across the national security apparatus, particularly for high-priority missions like Golden Dome and INDOPACOM support, where the company’s combined capabilities in hyperspectral imaging, missile detection, and autonomous ground processing software address evolving threats in contested environments. This strategic fit is reinforced by the CEO’s confirmation that the space segment now exceeds $1 billion in annual revenue post-acquisition, with additional growth expected into fiscal year 2027, driven by software-defined technology investments that align with administration priorities for speed, agility, and mission proximity. The market may be overlooking how ARKA’s technology barriers to entry and decades of customer relationships create a durable competitive moat in a domain where federal funding is structurally increasing due to bipartisan support for space superiority and counter-space programs, which are explicitly called out as growth areas in the evolving FY 2027 budget request.
The company’s investments in software-defined technology across electronic warfare and counter-UAS are generating structural tailwinds that are not fully appreciated, as evidenced by the SPECTRAL program achieving Milestone C and initiating low-rate initial production for shipboard signals intelligence, which management described as a "defining step" toward delivering critical EW technology to over 100 combatant ships, with scalability enhanced by open architectures and FMS opportunities. Similarly, the Merlin counter-UAS system is seeing accelerated orders and deployment via U.S. Army Task Force 59, DIANA 401, and CENTCOM, leveraging nearly two decades of investment to provide economically sustainable nonkinetic effects with unique cellular detection capabilities—capabilities that are directly tied to administration priorities for border security and homeland defense, where reconciliation funding is flowing and expanding the TAM to $300 billion. These initiatives represent repeatable, ahead-of-need investments that establish differentiated positions in enduring national security priorities, and the CFO’s note that funded backlog increased 19% year-over-year (with organic growth at 10%) despite a sluggish award environment suggests that payment processing and program execution remain strong, indicating that the slowdown in awards is a timing issue rather than a demand problem, which should resolve as the government returns to historical award timelines of 100–300 days from planning.
CACI’s financial trajectory is underpinned by predictable, long-duration backlog and improving operational efficiency, with the weighted average duration of backlog remaining above six years and total backlog reaching $33.4 billion (up 6% year-over-year), providing exceptional revenue visibility where 98% of fiscal 2026 revenue is expected from existing programs. The company’s focus on free cash flow per share as the ultimate value creation metric is supported by guidance projecting approximately 65% year-over-year growth in free cash flow per share for fiscal 2026 versus 2025, driven by strong profitability, good working capital management (DSO improved to 55 days), and the accretive impact of ARKA on both growth and margins. Management’s expectation to return pro forma net debt to trailing twelve-month EBITDA to the low threes within six quarters—despite current leverage at 4.2x—reflects a proven track record of rapid deleveraging post-acquisition, underscoring disciplined capital deployment and access to capital. The market may be underestimating how the combination of mission proximity (1,400+ employees embedded in combatant commands), software-defined technology leadership, and strategic acquisitions in high-barrier domains creates a self-reinforcing cycle of customer trust, recompete success (already >90% in 2026), and margin expansion, all of which support the raised FY 2026 EBITDA margin guidance of 11.8%–11.9% and the potential for sustained multiple expansion as the company evolves into a higher-growth, higher-margin technology-driven national security leader.

CACI International is positioned to capitalize on the accelerating demand for space-based sensing and agentic AI capabilities following the ARKA acquisition, which management highlighted as providing "another $2 billion of noncompetitive franchise programs" not yet reflected in backlog, creating significant future revenue visibility that the market is underestimating. The integration of ARKA’s exquisite space-based imaging sensor technology with CACI’s legacy space portfolio under unified leadership enables cross-selling opportunities across the national security apparatus, particularly for high-priority missions like Golden Dome and INDOPACOM support, where the company’s combined capabilities in hyperspectral imaging, missile detection, and autonomous ground processing software address evolving threats in contested environments. This strategic fit is reinforced by the CEO’s confirmation that the space segment now exceeds $1 billion in annual revenue post-acquisition, with additional growth expected into fiscal year 2027, driven by software-defined technology investments that align with administration priorities for speed, agility, and mission proximity. The market may be overlooking how ARKA’s technology barriers to entry and decades of customer relationships create a durable competitive moat in a domain where federal funding is structurally increasing due to bipartisan support for space superiority and counter-space programs, which are explicitly called out as growth areas in the evolving FY 2027 budget request.
The company’s investments in software-defined technology across electronic warfare and counter-UAS are generating structural tailwinds that are not fully appreciated, as evidenced by the SPECTRAL program achieving Milestone C and initiating low-rate initial production for shipboard signals intelligence, which management described as a "defining step" toward delivering critical EW technology to over 100 combatant ships, with scalability enhanced by open architectures and FMS opportunities. Similarly, the Merlin counter-UAS system is seeing accelerated orders and deployment via U.S. Army Task Force 59, DIANA 401, and CENTCOM, leveraging nearly two decades of investment to provide economically sustainable nonkinetic effects with unique cellular detection capabilities—capabilities that are directly tied to administration priorities for border security and homeland defense, where reconciliation funding is flowing and expanding the TAM to $300 billion. These initiatives represent repeatable, ahead-of-need investments that establish differentiated positions in enduring national security priorities, and the CFO’s note that funded backlog increased 19% year-over-year (with organic growth at 10%) despite a sluggish award environment suggests that payment processing and program execution remain strong, indicating that the slowdown in awards is a timing issue rather than a demand problem, which should resolve as the government returns to historical award timelines of 100–300 days from planning.
CACI’s financial trajectory is underpinned by predictable, long-duration backlog and improving operational efficiency, with the weighted average duration of backlog remaining above six years and total backlog reaching $33.4 billion (up 6% year-over-year), providing exceptional revenue visibility where 98% of fiscal 2026 revenue is expected from existing programs. The company’s focus on free cash flow per share as the ultimate value creation metric is supported by guidance projecting approximately 65% year-over-year growth in free cash flow per share for fiscal 2026 versus 2025, driven by strong profitability, good working capital management (DSO improved to 55 days), and the accretive impact of ARKA on both growth and margins. Management’s expectation to return pro forma net debt to trailing twelve-month EBITDA to the low threes within six quarters—despite current leverage at 4.2x—reflects a proven track record of rapid deleveraging post-acquisition, underscoring disciplined capital deployment and access to capital. The market may be underestimating how the combination of mission proximity (1,400+ employees embedded in combatant commands), software-defined technology leadership, and strategic acquisitions in high-barrier domains creates a self-reinforcing cycle of customer trust, recompete success (already >90% in 2026), and margin expansion, all of which support the raised FY 2026 EBITDA margin guidance of 11.8%–11.9% and the potential for sustained multiple expansion as the company evolves into a higher-growth, higher-margin technology-driven national security leader.

▼ Bear case

CACI International faces significant near-term headwinds from the persistently sluggish award environment, which management acknowledged as being driven by "short-term factors behind the slow award decision-making" and described as "lumpy," with the book-to-bill ratio at 0.9x for the quarter indicating that awards are not keeping pace with revenue recognition, a trend that could persist if government procurement delays from acquisition organization changes and reconciliation funding complexities continue to disrupt decision timelines, potentially compressing near-term revenue growth despite the strong backlog. The company’s reliance on existing programs for 98% of fiscal 2026 revenue visibility leaves it vulnerable to any disruption in those programs, and while funded backlog increased 19% year-over-year, the organic component was only 10%, suggesting that much of the growth is acquisition-driven (ARKA contributed $422 million to funded backlog), raising concerns about the sustainability of organic momentum if the award environment does not improve, especially given that the civil segment’s 7% year-over-year growth was partially offset by modest DHS headwinds, highlighting sensitivity to budget fluctuations in non-defense markets.
The integration of ARKA introduces execution and margin volatility risks that management acknowledged but did not fully quantify, with the CFO noting that quarter-to-quarter margins can be lumpy due to technology business dynamics, where "increasing our margin performance for the year probably means some lumpiness in the fourth quarter that goes the other way," and the CEO emphasizing that revenue is not linear because "you make deliveries; you book revenue," which could lead to unpredictable quarterly performance that frustrates investors seeking consistent execution, particularly as the company absorbs nearly $50 million in transaction-related costs and incremental capital expenditures against a free cash flow guidance reaffirmed at a minimum of $725 million—leaving little room for error if integration synergies or ARKA’s expected financial contribution accretive to revenue growth and margin fail to materialize on schedule, especially since the ARKA contribution to the fourth quarter margin is described as "pretty consistent with expectations" but still subject to three- to four-point swings around quarterly averages are possible, creating uncertainty in near-term earnings predictability.
Despite the optimistic outlook on national security priorities, CACI International’s growth is increasingly dependent on continued federal spending in specific domains like space, electronic warfare, and counter-UAS, which, while currently supported by bipartisan backing, remain vulnerable to shifts in political priorities or budget reallocations—especially as the company acknowledged that it is "in the very early innings" of ARKA integration, having only just completed the acquisition on April 1, and the CEO’s comment that ARKA is a "long-term play" implies that the full benefits may not be realized until fiscal year 2027 or later, meaning that near-term performance could be weighed down by integration costs and execution risks without the offsetting upside of matured synergies, while the company’s $300 billion TAM expansion relies heavily on reconciliation funding flowing into areas like Golden Dome and border security, which, if delayed or reduced due to legislative gridlock or changing threat perceptions, could constrain the addressable market and limit the upside from new business opportunities, of which the pipeline shows $4 billion under evaluation (over 80% for new business) but has not yet converted to awards at a sufficient rate to offset the sluggish book-to-bill ratio.

CACI International faces significant near-term headwinds from the persistently sluggish award environment, which management acknowledged as being driven by "short-term factors behind the slow award decision-making" and described as "lumpy," with the book-to-bill ratio at 0.9x for the quarter indicating that awards are not keeping pace with revenue recognition, a trend that could persist if government procurement delays from acquisition organization changes and reconciliation funding complexities continue to disrupt decision timelines, potentially compressing near-term revenue growth despite the strong backlog. The company’s reliance on existing programs for 98% of fiscal 2026 revenue visibility leaves it vulnerable to any disruption in those programs, and while funded backlog increased 19% year-over-year, the organic component was only 10%, suggesting that much of the growth is acquisition-driven (ARKA contributed $422 million to funded backlog), raising concerns about the sustainability of organic momentum if the award environment does not improve, especially given that the civil segment’s 7% year-over-year growth was partially offset by modest DHS headwinds, highlighting sensitivity to budget fluctuations in non-defense markets.
The integration of ARKA introduces execution and margin volatility risks that management acknowledged but did not fully quantify, with the CFO noting that quarter-to-quarter margins can be lumpy due to technology business dynamics, where "increasing our margin performance for the year probably means some lumpiness in the fourth quarter that goes the other way," and the CEO emphasizing that revenue is not linear because "you make deliveries; you book revenue," which could lead to unpredictable quarterly performance that frustrates investors seeking consistent execution, particularly as the company absorbs nearly $50 million in transaction-related costs and incremental capital expenditures against a free cash flow guidance reaffirmed at a minimum of $725 million—leaving little room for error if integration synergies or ARKA’s expected financial contribution accretive to revenue growth and margin fail to materialize on schedule, especially since the ARKA contribution to the fourth quarter margin is described as "pretty consistent with expectations" but still subject to three- to four-point swings around quarterly averages are possible, creating uncertainty in near-term earnings predictability.
Despite the optimistic outlook on national security priorities, CACI International’s growth is increasingly dependent on continued federal spending in specific domains like space, electronic warfare, and counter-UAS, which, while currently supported by bipartisan backing, remain vulnerable to shifts in political priorities or budget reallocations—especially as the company acknowledged that it is "in the very early innings" of ARKA integration, having only just completed the acquisition on April 1, and the CEO’s comment that ARKA is a "long-term play" implies that the full benefits may not be realized until fiscal year 2027 or later, meaning that near-term performance could be weighed down by integration costs and execution risks without the offsetting upside of matured synergies, while the company’s $300 billion TAM expansion relies heavily on reconciliation funding flowing into areas like Golden Dome and border security, which, if delayed or reduced due to legislative gridlock or changing threat perceptions, could constrain the addressable market and limit the upside from new business opportunities, of which the pipeline shows $4 billion under evaluation (over 80% for new business) but has not yet converted to awards at a sufficient rate to offset the sluggish book-to-bill ratio.

Segments Breakdown of Revenue (2025)

Peer Comparison

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3	GDS	GDS Holdings Ltd	50.55 Bn	126.44	29.45	-
4	INFY	Infosys Ltd	44.05 Bn	0.29	0.05	-
5	GIB	Cgi Inc	41.25 Bn	0.32	3.47	2.65 Bn
6	FIS	Fidelity National Information Services, Inc.	20.63 Bn	134.81	1.80	16.99 Bn
7	CTSH	Cognizant Technology Solutions Corp	20.39 Bn	9.24	0.95	0.57 Bn
8	WIT	Wipro Ltd	18.65 Bn	12.56	1.80	1.88 Bn

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Investment Thesis

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer Comparison

Research Tools

Developers

About

Investment Thesis

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer Comparison

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