CACI International (CACI) Financials

CACI International’s latest results show strong operating momentum, but the company’s acquisition-driven expansion has materially increased leverage. Q4 fiscal 2026 revenue rose to $2.71 billion, up approximately 17.6% from $2.30 billion in Q4 fiscal 2025. Operating income increased 31.7% to $272.2 million, while the operating margin improved to approximately 10.0% from 9.0%.

Net income was $156.8 million, slightly below the $157.9 million reported in Q4 fiscal 2025. The comparison was affected by an unusually low tax expense in the prior-year quarter. Diluted EPS declined modestly to $7.06 from $7.11, despite higher operating income, as interest expense increased and the share count was broadly stable.

Cash generation improved substantially. Q4 operating cash flow reached $378.3 million, compared with $156.0 million in Q4 fiscal 2025 and $183.2 million in Q3 fiscal 2026. The improvement reflected stronger earnings, noncash expenses and a $113.9 million benefit from operating working capital in Q4.

The balance sheet reflects the impact of major acquisitions. At March 31, 2026, total assets were $11.6 billion, up from $8.9 billion at December 31, 2025. Goodwill increased to $6.47 billion from $5.02 billion, while intangible assets more than doubled to $2.16 billion. These assets can support future earnings growth, but they also increase impairment risk if acquired businesses underperform.

• Revenue growth accelerated: Quarterly revenue increased from $1.36 billion in Q4 fiscal 2022 to $2.71 billion in Q4 fiscal 2026, supported by organic growth and acquisitions.
• Operating profitability improved: Q4 fiscal 2026 operating income reached $272.2 million, and the operating margin expanded to approximately 10.0% from about 9.0% a year earlier.
• Operating cash flow strengthened: Q4 operating cash flow of $378.3 million was more than double the prior-year figure, providing greater internal funding for investment and debt reduction.
• Working-capital cash conversion improved in the latest quarter: Operating assets and liabilities contributed $113.9 million of cash in Q4, reversing the $26.7 million use of cash in Q3.
• Share dilution remained limited: Weighted average diluted shares were 22.18 million in Q4 fiscal 2026, only modestly above the basic share count and below the 22.39 million reported in Q4 fiscal 2025.
• Equity increased: Total common equity rose to $4.28 billion at March 31, 2026, from $3.72 billion at March 31, 2025, helped by retained earnings and acquisition-related balance-sheet growth.
• Acquisition activity is now a central growth driver: CACI spent $2.64 billion on acquisitions in Q3 fiscal 2026, followed by $10.8 million in Q4. Investors will need to monitor whether acquired operations deliver sufficient returns.
• Cash balances remain positive but volatile: Cash and equivalents declined from $423.0 million at December 31, 2025, to $158.0 million at March 31, 2026, before Q4 cash flow produced a $33.8 million quarterly increase.
• Debt increased sharply: Long-term debt climbed to $5.13 billion at March 31, 2026, from $2.92 billion at December 31, 2025. Total liabilities reached $7.32 billion, making balance-sheet deleveraging an important investor focus.
• Interest costs are rising: Q4 interest expense increased to $72.1 million from $45.7 million a year earlier, while cash interest paid reached $77.1 million. Higher financing costs could limit future earnings growth if debt remains elevated.

Overall, CACI’s recent financial statements point to a growing and increasingly profitable business with improving cash conversion. However, the investment case now depends heavily on successful integration of acquisitions, sustained operating-margin gains and the company’s ability to reduce the higher debt burden without slowing growth.