RESTON, Va.--(BUSINESS WIRE)--CACI International Inc (NYSE: CACI) announced today that it has been awarded a five-year task order valued at up to $180 million to deliver continuous, secure, and stable network operations across the Pacific theater to the Air Force – Pacific Air Forces (PACAF) in support of U.S. Indo- Pacific Command (INDOPACOM). CACI's efforts will modernize the Air Force information technology (IT) infrastructure to strengthen mission readiness, defend against cyber threats, and. ...

CACI International Inc. (NYSE:CACI) is one of the best IT stocks to invest in according to hedge funds. On August 25, CACI International announced it was awarded 2 contracts with the Canadian Armed Forces/CAF. These contracts are part of the second phase of the Counter Uncrewed Aircraft System/C-UAS Urgent Operational Requirement/UOR. The contracts, with a total value of ~$124 million, will provide a light-armored tactical C-UAS vehicle platform and up to 10 years of support. The new technology aims to pr ...

Group 1: Industry Overview - The U.S. government's push for military strength is creating investment opportunities for defense contractors, with over $150 billion allocated for defense projects in the One Big Beautiful Bill Act [1] - Analysts expect companies like CACI International, Booz Allen, and Viasat to benefit from this funding and achieve growth [1] Group 2: CACI International - CACI has quickly become a favored defense stock on Wall Street, with Goldman Sachs upgrading its rating to "Buy" and raising the target price from $407 to $544 [2] - The company has a strong relationship with the U.S. Department of Defense, which accounts for 75% of its revenue, and it is expected to outpace peers in growth due to its shift towards advanced technologies [2] - CACI's proprietary anti-drone systems differentiate it from competitors, with an estimated 26% of its revenue coming from these solutions [2] - CACI's stock has risen 21% year-to-date, with a 13% year-over-year revenue increase to $2.3 billion, surpassing expectations [2] Group 3: Booz Allen - Booz Allen, one of the oldest defense consulting firms, has seen its stock decline 15% this year and nearly 28% over the past 12 months [3] - The company faced contract terminations, with 97 agreements canceled by the Department of Defense, impacting its performance [3] - However, market sentiment is shifting, and analysts predict Booz Allen could rebound, with a focus on its core businesses in AI, cybersecurity, software development, and data analytics [3] - The latest financial report showed a slight revenue decline of 0.6% to $2.9 billion, but adjusted earnings per share increased by 7.2% to $1.48, exceeding expectations [3] Group 4: Viasat - Viasat is gaining attention as a potential high-growth stock, with analysts noting significant upside potential despite recent stock price increases [4] - Potential catalysts include management's consideration of an IPO or spin-off of its defense technology business and expected cash inflow of $568 million from a spectrum agreement with Ligado [4] - The company anticipates positive free cash flow in the second half of the year, boosting investor confidence [4] - Viasat's stock has surged over 200% year-to-date, with a 4% revenue increase to $1.17 billion, although net losses widened from $33 million to $56 million [5]

PART I [Business](index=5&type=section&id=Item%201.%20Business) CACI provides specialized expertise and technology to U.S. government agencies, with 97% domestic revenue and growth from acquisitions - **CACI provides expertise and technology to national security customers in intelligence, defense, and federal civilian sectors**[22](index=22&type=chunk) Revenue by Operation Segment (FY2023-2025) | Segment | FY2025 Revenue % | FY2024 Revenue % | FY2023 Revenue % | | :--- | :--- | :--- | :--- | | Domestic Operations | 97.0% | 97.0% | 97.2% | | International Operations | 3.0% | 3.0% | 2.8% | - **Top ten contracts generated $4.0 billion, representing 46.4% of fiscal 2025 revenues**[39](index=39&type=chunk) - **CACI employed approximately 25,000 full and part-time employees as of June 30, 2025**[42](index=42&type=chunk) - **Seven acquisitions completed over the past three fiscal years expanded offerings and customer presence**[40](index=40&type=chunk)[50](index=50&type=chunk) [Risk Factors](index=8&type=section&id=Item%201A.%20Risk%20Factors) CACI faces material risks from heavy reliance on U.S. federal government contracts, competitive pressures, and debt management - **Federal government contracts accounted for 95.7% of fiscal 2025 revenue, with Department of Defense contracts comprising 75.4%**[59](index=59&type=chunk) - **Government contract procurement processes, including bid protests, pose risks of project delays and increased expenses**[60](index=60&type=chunk) - **Fixed-price contracts, representing 26.3% of FY2025 revenue, carry cost overrun and potential loss risks**[90](index=90&type=chunk) - **Goodwill from prior acquisitions totaled $5.0 billion as of June 30, 2025, subject to impairment risk**[96](index=96&type=chunk) - **Debt instruments, including the Credit Facility and Term Loan B, impose operating and financial restrictions, with non-compliance risking default**[97](index=97&type=chunk)[98](index=98&type=chunk) [Unresolved Staff Comments](index=16&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - **None**[114](index=114&type=chunk) [Cybersecurity](index=16&type=section&id=Item%201C.%20Cybersecurity) CACI's cybersecurity program, managed by the CISO and overseen by the Audit and Risk Committee, aligns with NIST standards - **The cybersecurity program is managed by the CISO and integrated into the company's overall risk management framework**[116](index=116&type=chunk) - **The program aligns with NIST standards and complies with U.S. government cybersecurity regulations**[117](index=117&type=chunk) - **The Audit and Risk Committee of the Board of Directors oversees cybersecurity risks and incidents**[119](index=119&type=chunk) - **No cybersecurity threats have materially affected business operations or financial condition as of the report date**[120](index=120&type=chunk) [Properties](index=17&type=section&id=Item%202.%20Properties) CACI leases 3.7 million square feet across 136 U.S. locations and 0.1 million square feet internationally - **The company leases approximately 3.7 million square feet in 136 U.S. locations and 0.1 million square feet internationally**[121](index=121&type=chunk) [Legal Proceedings](index=17&type=section&id=Item%203.%20Legal%20Proceedings) CACI is appealing a **$42 million** jury award in the Al Shimari case, with the Abbass case stayed pending its outcome - **In the Al Shimari case, a jury awarded $3 million in compensatory and $11 million in punitive damages per plaintiff, with CACI appealing the decision**[136](index=136&type=chunk)[137](index=137&type=chunk) - **The Abbass v. CACI case, with similar allegations, is stayed pending the Al Shimari appeal outcome**[138](index=138&type=chunk)[139](index=139&type=chunk)[143](index=143&type=chunk) - **CACI is vigorously defending these legal proceedings, believing the lawsuits are without merit**[140](index=140&type=chunk) [Mine Safety Disclosures](index=20&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not Applicable**[144](index=144&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=21&type=section&id=Item%205.%20Market%20for%20the%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) CACI common stock trades on NYSE, has never paid dividends, and repurchased **11,558 shares** in Q4 FY2025 - **The company retains earnings for business expansion and has never paid a cash dividend**[148](index=148&type=chunk) Share Repurchases (Quarter Ended June 30, 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Remaining for Purchase | | :--- | :--- | :--- | :--- | | April 2025 | 11,558 | $394.95 | 494,741 | | May 2025 | — | — | 494,741 | | June 2025 | — | — | 494,741 | - **CACI's five-year cumulative total return was 119.8%, outperforming the Russell 1000 Index at 112.8%**[151](index=151&type=chunk) [Management's Discussion and Analysis of Financial Condition & Results of Operations](index=22&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20%26%20Results%20of%20Operations) FY2025 revenue grew **12.6% to $8.63 billion**, with net income up **19.0%**, supported by strong backlog Fiscal 2025 vs. 2024 Results of Operations (in thousands) | Metric | FY 2025 | FY 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $8,627,824 | $7,659,832 | $967,992 | 12.6% | | Income from operations | $764,185 | $649,708 | $114,477 | 17.6% | | Net income | $499,830 | $419,924 | $79,906 | 19.0% | - **Revenue increase primarily driven by 7.2% organic growth from new contract awards and existing programs**[164](index=164&type=chunk) - **Effective income tax rate decreased from 22.9% to 17.4% in FY2025 due to a federal income tax audit resolution**[169](index=169&type=chunk) - **Total contract backlog was $31.4 billion as of June 30, 2025, with funded backlog at $4.2 billion**[170](index=170&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $547,009 | $497,331 | | Net cash used in investing activities | $(1,758,943) | $(151,952) | | Net cash provided by (used in) financing activities | $1,177,881 | $(326,895) | [Quantitative and Qualitative Disclosure About Market Risk](index=28&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) CACI manages market risk from variable-rate debt interest changes and foreign currency fluctuations - **Interest rate risk is managed through floating-to-fixed interest rate swap agreements totaling $1.0 billion notional amount**[199](index=199&type=chunk) - **A one percent interest rate fluctuation would change annual interest expense on variable-rate debt by approximately $15.7 million**[199](index=199&type=chunk) - **International operations, 3.0% of FY2025 revenues, expose the company to foreign currency risk, mitigated by local currency contracts**[200](index=200&type=chunk) [Financial Statements and Supplementary Data](index=28&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents CACI's audited consolidated financial statements for FY2025, including balance sheets and cash flow [Consolidated Balance Sheets](index=31&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | $1,779,945 | $1,374,529 | | Goodwill | $5,021,805 | $4,154,844 | | Total assets | $8,647,598 | $6,796,101 | | **Liabilities & Equity** | | | | Total current liabilities | $1,208,106 | $1,078,260 | | Long-term debt, net | $2,849,190 | $1,481,387 | | Total liabilities | $4,753,653 | $3,277,894 | | Total shareholders' equity | $3,893,945 | $3,518,207 | [Consolidated Statements of Operations](index=32&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | Revenues | $8,627,824 | $7,659,832 | $6,702,546 | | Income from operations | $764,185 | $649,708 | $567,500 | | Net income | $499,830 | $419,924 | $384,735 | | Diluted earnings per share | $22.32 | $18.60 | $16.43 | [Consolidated Statements of Cash Flows](index=34&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $547,009 | $497,331 | $388,056 | | Net cash used in investing activities | $(1,758,943) | $(151,952) | $(75,717) | | Net cash provided by (used in) financing activities | $1,177,881 | $(326,895) | $(316,108) | | Net change in cash and cash equivalents | $(27,780) | $18,185 | $972 | | Cash and cash equivalents, end of year | $106,181 | $133,961 | $115,776 | [Notes to the Consolidated Financial Statements](index=36&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) - **Note 4 - Acquisitions: CACI completed three acquisitions in FY2025, including Applied Insight for $314.2 million and Azure Summit Technology for $1.31 billion**[271](index=271&type=chunk)[272](index=272&type=chunk)[276](index=276&type=chunk) - **Note 5 - Revenues: Remaining performance obligations totaled $12.1 billion as of June 30, 2025, with 44% expected in 12 months**[286](index=286&type=chunk) - **Note 8 - Goodwill and Intangible Assets: Goodwill increased from $4.15 billion to $5.02 billion in FY2025, primarily due to acquisitions**[292](index=292&type=chunk)[293](index=293&type=chunk) - **Note 12 - Debt: Total long-term debt principal outstanding was $2.94 billion as of June 30, 2025, up from $1.55 billion**[302](index=302&type=chunk) - **Note 16 - Income Taxes: Effective tax rate for FY2025 was 17.4%, down from 22.9% in FY2024 due to a tax audit resolution**[335](index=335&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=58&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes or disagreements with its accountants on accounting or financial disclosure - **None**[353](index=353&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of June 30, 2025 - **Management concluded disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025**[356](index=356&type=chunk) - **Management concluded internal control over financial reporting was effective as of June 30, 2025, based on the COSO framework**[359](index=359&type=chunk) [Other Information](index=59&type=section&id=Item%209B.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements in Q4 FY2025 - **No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025**[361](index=361&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=59&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - **Not Applicable**[362](index=362&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=60&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated from the 2025 Proxy Statement - **Required information is incorporated by reference from the 2025 Annual Meeting of Stockholders Proxy Statement**[365](index=365&type=chunk) - **The company adopted a code of ethics, "Standards of Ethics and Business Conduct," applicable to principal officers**[366](index=366&type=chunk) [Executive Compensation](index=60&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information is incorporated by reference from the 2025 Proxy Statement - **Required information is incorporated by reference from the 2025 Annual Meeting of Shareholders Proxy Statement**[369](index=369&type=chunk) [Security Ownership of Certain Beneficial Owners and Management](index=60&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management) Security ownership information is incorporated by reference from the 2025 Proxy Statement - **Required information is incorporated by reference from the 2025 Annual Meeting of Shareholders Proxy Statement**[370](index=370&type=chunk) [Certain Relationships and Related Transactions](index=60&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions) Information on certain relationships and related transactions is incorporated from the 2025 Proxy Statement - **Required information is incorporated by reference from the 2025 Annual Meeting of Shareholders Proxy Statement**[371](index=371&type=chunk) [Principal Accountant Fees and Services](index=60&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Principal accountant fees and services information is incorporated from the 2025 Proxy Statement - **Required information is incorporated by reference from the 2025 Annual Meeting of Shareholders Proxy Statement**[372](index=372&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=61&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements, schedules, and exhibits filed with the Form 10-K - **This section lists all financial statements and exhibits filed with the Annual Report, with schedules omitted as not applicable**[376](index=376&type=chunk) [Form 10-K Summary](index=65&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for its Form 10-K - **None**[379](index=379&type=chunk)

Financial Data and Key Metrics Changes - For fiscal year 2025, the company achieved revenue growth of 16% on an underlying basis, with an EBITDA margin of 11.2% and free cash flow of $442 million, reflecting a 16% increase in free cash flow per share [9][24][26] - In Q4, revenue reached $2.3 billion, representing a 13% year-over-year growth, with an EBITDA margin of 11.5% [22][24] - Adjusted diluted earnings per share for Q4 were $8.4, a 27% increase from the previous year [22] Business Line Data and Key Metrics Changes - The company won $10 billion in contract awards for the year, resulting in a book-to-bill ratio of 1.1x [10][32] - The company reported 10% organic growth for the full year, driven by strong customer demand for its differentiated technology [24][26] Market Data and Key Metrics Changes - The company generates 90% of its revenue from national security customers, benefiting from government funding initiatives such as the One Big Beautiful Bill Act, which allocates over $150 billion for defense [18][32] - The company has a healthy pipeline with $16 billion in bids under evaluation, 80% of which are for new business [34] Company Strategy and Development Direction - The company has positioned itself in well-funded areas aligned with national security priorities, focusing on software-based capabilities and modernization [11][19] - The company anticipates revenue growth of nearly 8% for fiscal year 2026, with an EBITDA margin in the mid-11% range and free cash flow per share growth of over 60% [19][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current operating environment, highlighting strong customer demand and a robust pipeline of opportunities [17][19] - The company is closely monitoring the fiscal year 2026 budget process, indicating comfort in operating under a continuing resolution if necessary [18][19] Other Important Information - The company completed three strategic acquisitions and repurchased $150 million of shares during the year [28] - The company has a modest leverage ratio of 2.9x net debt to trailing twelve-month EBITDA, providing significant optionality for future capital deployment [28] Q&A Session Summary Question: Concerns about the competitive landscape and pipeline - Management clarified that the majority of their $16 billion pipeline consists of new work to CACI, with over half being new customer work, indicating a focus on value bids rather than traditional government services [41][44] Question: Impact of ceiling reduction on iTask program - Management confirmed that the ceiling reduction from $5.7 billion to $5 billion does not impact revenue or margins, and the program continues to execute well [47][49] Question: Budget outlook and potential for organic growth - Management indicated that a quicker budget process could lead to achieving the higher end of organic growth guidance, emphasizing a robust process for setting guidance [54][56] Question: Award environment and contracting officer availability - Management noted some modest impacts on award decisions but emphasized their ability to operate effectively in the current environment, with expectations of extended current work due to tighter procurement bandwidth [68][70] Question: Updates on space optical terminals and Golden Dome initiative - Management reported strong demand for their technology and ongoing success in the space optical terminal market, with investments on track despite some production delays [78][80] Question: Federal civilian exposure and budget outlook - Management stated that only 6% of revenue comes from federal civilian work, with a strategic focus on defense and intelligence sectors, minimizing exposure to federal civilian budget fluctuations [92][94]

Key Takeaways CACI International Inc.'s (CACI) shares gained 3.5% during Wednesday's extended trading session after the company reported better-than-expected results for the fourth quarter of fiscal 2025. CACI reported fourth-quarter non-GAAP earnings of $8.40 per share, which beat the Zacks Consensus Estimate by 28.4%. The bottom line increased 27.1% on a year-over-year basis, primarily driven by higher revenues, increased operating income, lower taxes and a reduction in the share count, partially offset b ...

Financial Data and Key Metrics Changes - For fiscal year 2025, the company achieved revenue growth of 16% on an underlying basis, with an EBITDA margin of 11.2% and free cash flow of $442 million, reflecting a growth of over 16% per share [8][25][30] - In the fourth quarter, revenue reached $2.3 billion, representing a 13% year-over-year growth, with an EBITDA margin of 11.5% [23][25] - Adjusted diluted earnings per share for the fourth quarter were $8.4, a 27% increase from the previous year [23] Business Line Data and Key Metrics Changes - The company won $10 billion in contract awards for the fiscal year, resulting in a book-to-bill ratio of 1.1x [8][33] - The fiscal year 2025 saw a 10% organic growth in revenue, driven by strong customer demand for differentiated technology and expertise [25][30] Market Data and Key Metrics Changes - The company generates 90% of its revenue from national security customers, benefiting from favorable government funding trends, including $150 billion allocated for defense [18][30] - The company has a healthy pipeline with $16 billion in bids under evaluation, 80% of which are for new business [33] Company Strategy and Development Direction - The company has positioned itself in well-funded areas aligned with national security priorities, focusing on software-based capabilities and modernization [10][17] - The strategy emphasizes bidding on high-value opportunities rather than competing aggressively on price, with a focus on differentiated capabilities [44][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal year 2026 guidance, expecting revenue growth of nearly 8% and free cash flow per share growth of over 60% [20][30] - The company is closely monitoring the government fiscal year 2026 budget process, indicating resilience in operating under a continuing resolution [19][60] Other Important Information - The company completed three strategic acquisitions and repurchased $150 million of shares during the year [29] - The effective tax rate in the fourth quarter benefited from a $28 million tax resolution, which will positively impact future tax liabilities [23][27] Q&A Session Summary Question: Concerns about the competitive landscape and takeaway work - Management clarified that the majority of their pipeline consists of new work, with a focus on differentiated solutions rather than traditional government services [41][44] Question: Impact of ceiling reduction on iTask program - Management confirmed that the ceiling reduction does not affect revenue, margins, or guidance, and the program continues to execute well [48][50] Question: Outlook on federal civilian budget exposure - The company has minimal exposure to federal civilian work, focusing primarily on defense and intelligence sectors, which are more stable [98][100] Question: Software acquisition directive and its implications - Management views the software acquisition directive positively, anticipating increased opportunities for software solutions in government contracts [109][111] Question: Pipeline characterization and outcome-based pricing - Management indicated that their pipeline includes both new work to the market and new work to CACI, emphasizing their focus on delivering better solutions than competitors [116][118]

CACI International Inc Q4 FY25 Earnings Conference Call August 7, 2025 EXPERTISE and TECHNOLOGY 1 | CACI Proprietary Information EXPERTISE and TECHNOLOGY for National Security for National Security Forward-looking statements 2 | CACI Proprietary Information On today's call John Mengucci President and Chief Executive Officer Jeff MacLauchlan Chief Financial Officer and Treasurer 3 | CACI Proprietary Information Honoring the Legacy of Mike Daniels There are statements made herein that do not address historica ...

Core Insights - CACI International reported revenue of $2.3 billion for the quarter ended June 2025, reflecting a 13% increase year-over-year and a slight surprise of +0.34% over the Zacks Consensus Estimate [1] - Earnings per share (EPS) reached $8.40, significantly higher than the $6.61 reported in the same quarter last year, resulting in an EPS surprise of +28.44% compared to the consensus estimate of $6.54 [1] Revenue Performance - Total revenue organic growth year-over-year was 5.3%, slightly below the estimated 6% by analysts [4] - Revenue from Expertise was reported at $962.64 million, compared to the average estimate of $1.01 billion, marking a +5.5% year-over-year change [4] - Revenue from Technology reached $1.34 billion, exceeding the estimated $1.3 billion, with a +19.2% change year-over-year [4] - Revenue from the Commercial and other customer group was $114.43 million, significantly lower than the estimated $206.09 million, but still showing a +19% year-over-year change [4] - Revenue from Federal Civilian Agencies was $447.46 million, slightly above the average estimate of $445.3 million, representing a +9.2% year-over-year change [4] - Revenue from the Department of Defense was reported at $1.74 billion, surpassing the estimated $1.66 billion, with a +13.7% year-over-year change [4] Stock Performance - CACI International's shares have returned -3.6% over the past month, contrasting with the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Group 1: Earnings Performance - CACI International reported quarterly earnings of $8.4 per share, exceeding the Zacks Consensus Estimate of $6.54 per share, and up from $6.61 per share a year ago, representing an earnings surprise of +28.44% [1] - The company posted revenues of $2.3 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.34%, and an increase from $2.04 billion year-over-year [2] - CACI has surpassed consensus EPS estimates in all four of the last quarters [2] Group 2: Stock Performance and Outlook - CACI shares have increased approximately 16.7% since the beginning of the year, compared to a 7.1% gain in the S&P 500 [3] - The company's earnings outlook will be crucial for future stock movements, with current consensus EPS estimates at $6.56 for the coming quarter and $27.01 for the current fiscal year [4][7] - The estimate revisions trend for CACI was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Computer - Services industry, to which CACI belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]