CACI International Q3 Earnings Beat Estimates, Revenues Rise Y/Y

CACI InternationalCACI reported third-quarter fiscal 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.

CACI reported third-quarter fiscal 2026 non-GAAP earnings of $7.27 per share, which beat the Zacks Consensus Estimate by 5.4%. The bottom line increased 16.7% on a year-over-year basis, primarily driven by higher revenues and operating income, partially offset by higher tax provisions and higher interest expenses.

In the third quarter of fiscal 2026, CACI reported revenues of $2.4 billion, which surpassed the consensus mark by 0.21%. The top line increased 8.5% from the prior-year quarter.

The better-than-expected results pushed CACI stock up 0.54% in the premarket hours on Thursday. CACI shares have soared 21% in the past year, outperforming the Computer - Services industry’s decline of 4.7%.

CACI’s Q3 FY26 Details

In the third quarter of fiscal 2026, contract awards totaled $2.2 billion, reflecting continued strong demand and a healthy pipeline. The company reported a book-to-bill ratio of 0.9x for the quarter and 1.2x on a trailing 12-month basis, with a weighted average contract duration of more than six years.

Total backlog was $33.4 billion, marking a 6.4% year-over-year increase, representing approximately 3.6 years of annualized revenue visibility. Funded backlog grew even faster, increasing 19% year over year, reflecting solid near-term revenue support.

From a revenue composition perspective, CACI continues to derive the vast majority of its business from existing programs, which accounted for 98% of revenues, while recompetes and new business each contributed about 1%, reflecting a highly stable and recurring revenue base.

Profitability remained healthy, supported by execution and mix benefits. Adjusted EBITDA margin expanded to 12.3%, up 60 basis points year over year, while adjusted EPS grew 17% year over year. Operating income growth was driven by higher revenues, improved execution and lower share count, partially offset by higher interest expense and taxes.

CACI’s Balance Sheet & Cash Flow

As of March 31, 2026, CACI had cash and cash equivalents of $158 million compared with the previous quarter’s $423 million.

The company continues to maintain a solid financial position, though leverage increased to approximately 4.2x (pro forma) following the ARKA acquisition. Management expects leverage to return to the low 3x range within six quarters, supported by strong cash flow generation.

CACI’s operating cash flow was $504 million, and free cash flow was $221 million in the third quarter of fiscal 2026.

CACI Updates Fiscal 2026 Guidance

Buoyed by strong execution and demand visibility, CACI raised its fiscal 2026 revenue guidance to be in the band of $9.5-$9.6 billion, up from the prior range of $9.3-$9.5 billion, implying 10% to 11% growth. The Zacks Consensus Estimate for CACI’s fiscal 2026 revenues is pegged at $9.49 billion, indicating year-over-year growth of 9.96%.

However, due to acquisition-related costs and higher interest expenses, the company lowered adjusted net income guidance to $615-$630 million from the earlier projection of $630-$645 million.

Adjusted EPS is now expected in the range of $27.70-$28.38 compared with the earlier guidance of $28.25-$28.92. The Zacks Consensus Estimate for CACI’s fiscal 2026 earnings is pegged at $28.32, indicating a year-over-year growth of 6.9%.

CACI reaffirmed its free cash flow guidance of $725 million, despite higher capital expenditures (~$95 million) and integration costs, highlighting the strength of its cash-generating model.

Zacks Rank and Stocks to Consider

Currently, CACI carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Zacks Computer and Technology sector are Arista NetworksANET, Advanced EnergyAEIS and Applied MaterialsAMAT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Arista Networks have gained 17.8% year-to-date. The Zacks Consensus Estimate for ANET’s 2026 earnings is pegged at $3.53 per share, up by a penny over the past 30 days, indicating an increase of 18.5% year over year.

Shares of Advanced Energy have gained 78.8% year-to-date. The Zacks Consensus Estimate for AEIS’ 2026 earnings is pegged at $8.32 per share, down a penny over the past 60 days, indicating a rise of 29.8% year over year.

Applied Materials shares have surged 53.4% year-to-date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $11.10 per share, up 7 cents over the past 30 days, indicating an increase of 17.8% year over year.

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This article originally published on Zacks Investment Research (zacks.com).

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