CACI International NYSE: CACI reported record revenue, EBITDA margin and free cash flow for its fiscal 2026 fourth quarter and full year, while issuing fiscal 2027 guidance that calls for continued double-digit revenue growth and at least $900 million in free cash flow.
For fiscal 2026, the national security technology company generated $9.6 billion in revenue, up 10.9% from the prior year, including 7.2% organic growth. EBITDA margin rose 110 basis points to 12.3%, while adjusted diluted earnings per share increased 12.7% to $29.83. Free cash flow totaled $735 million, and the company said free cash flow per share rose 68%.
Fourth-quarter revenue was $2.7 billion, an increase of 17.6% year over year, including 11.6% organic growth. Quarterly EBITDA margin reached 13%, up 150 basis points from a year earlier. The company said a gain from a minor divestiture in its U.K. business added about 30 basis points to fourth-quarter margin. Adjusted diluted EPS was $8.91, up 6.1%, and quarterly free cash flow was $233 million.
Fiscal 2027 Outlook
CACI forecast fiscal 2027 revenue of $10.65 billion to $10.85 billion, representing growth of 11.3% to 13.4%, including about $500 million of acquired revenue. The company expects EBITDA margin in the high 12% range, adjusted diluted EPS of $32.96 to $33.86, and free cash flow of at least $900 million.
Chief Financial Officer Jeff MacLauchlan said the free-cash-flow outlook includes a delayed $40 million tax refund and a $115 million cash benefit related to changes in the Section 174 research-and-development tax credit. CACI expects free cash flow per share to grow about 22% in fiscal 2027 and expects adjusted net income conversion of at least 100% for a second consecutive year.
MacLauchlan said organic growth is expected to be stronger in the second half of fiscal 2027 than in the first half, with first-quarter organic growth anticipated to be in the low single digits. He also described the company’s historical revenue cadence as approximately 45% in the first half and 55% in the second half, while cash flow has tended to be more heavily weighted toward the second half.
Technology Programs and Market Demand
President and Chief Executive Officer John Mengucci said the company’s growth strategy centers on software-defined technologies for national security missions, supported by its operational workforce and investments made ahead of customer demand.
In electronic warfare, Mengucci said CACI’s Spectral program reached Milestone C and is moving into low-rate initial production, with deployment expected to begin in the second half of fiscal 2027. The company’s SkyValor counter-unmanned aircraft system was selected for southern-border homeland-defense work, and CACI recently received a separate $500 million Domestic Shield award.
Mengucci said the company sees growing demand for counter-UAS systems and described the market as a long-term growth opportunity. He said CACI has received export approval for most or all of its systems and has delivered variations of those systems to 17 countries.
In space, CACI completed the integration of ARKA, which it acquired to combine sensing and AI-enabled analytics with CACI’s existing technology and customer presence. Mengucci said the combined business recently received an award supporting the U.S. Space Force against adversarial threats, its first award leveraging both legacy CACI and ARKA capabilities. The company also cited a classified counterspace win, progress to Phase 3 of the Space Force’s Enterprise Space Terminal program, and technology supporting NASA’s Artemis II mission.
The company also highlighted technology modernization programs for U.S. Transportation Command, the Office of Personnel Management, the U.S. Air Force, the U.S. Army and the Defense Intelligence Agency. CACI said it is using AI across software development to reduce development time, improve quality and increase delivered capability.
Backlog, Awards and Capital Structure
CACI recorded more than $10 billion in fiscal 2026 contract awards, representing a book-to-bill ratio of 1.1 times. The weighted average duration of those awards was nearly six years. Total backlog exceeded $32 billion, up 2% year over year, while funded backlog increased 29%.
MacLauchlan said approximately 83% of fiscal 2027 revenue is expected to come from existing programs, with recompetes accounting for 9% and new business accounting for 8%. The company had nearly $11 billion in bids under evaluation at year-end, about 75% of which represented new business, and expects to submit another $22 billion in bids over the following two quarters.
Management said nontraditional procurement methods, including other transaction authorities, commercial solutions openings and commercial acquisitions, are becoming more prevalent. Mengucci said CACI’s fiscal 2026 OTA award value was more than double the combined value of fiscal 2024 and fiscal 2025. He said smaller OTA awards can move more quickly into larger production programs, making traditional award metrics less directly comparable over time.
Following the ARKA acquisition, CACI ended the quarter with pro forma leverage of 3.7 times, down by half a turn during the quarter. The company now expects leverage to return to the low-3-times range by June 2027, one quarter earlier than previously projected.
Progress Against Long-Term Targets
Management said the fiscal 2027 outlook puts CACI on track to meet or exceed the three-year financial goals it established at its November 2024 investor day. The company now expects to generate at least $2.1 billion of free cash flow over the three-year period, compared with its prior $1.6 billion target. It also expects three-year EBITDA margin of 11.9% to 12%, above its prior mid-11% target.
Mengucci said CACI’s emphasis on operational support will remain part of its model even as the company expands its technology portfolio. He said more than 1,400 employees are embedded across combatant commands globally, providing mission insight that helps inform technology investments and product development.
About CACI International (NYSE:CACI)
CACI International Inc is a leading provider of information solutions and services to the U.S. federal government, with a primary focus on defense, intelligence, homeland security and federal civilian agencies. The company delivers advanced technology and domain expertise to support mission-critical operations, offering capabilities in areas such as data analytics, cyber security, network integration, enterprise IT modernization and logistics support. By integrating software, hardware and professional services, CACI helps clients enhance situational awareness, improve decision making and maintain critical infrastructure resilience.
Founded in 1962 and headquartered in Arlington, Virginia, CACI has evolved from a small consulting operation into a global enterprise.
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