Core Viewpoint - CACI International has shown a positive performance with a 1.8% increase in shares since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Financial Performance - CACI reported Q1 fiscal 2026 non-GAAP earnings of $6.85 per share, exceeding the Zacks Consensus Estimate by 10.48%, with a year-over-year increase of 15.5% driven by higher revenues and efficient cost management [2] - Revenues for the first quarter reached $2.29 billion, surpassing the consensus mark by 1.66%, and reflecting an 11.2% increase from the prior year, primarily due to 5.5% organic growth [3] Contract Awards and Backlog - In Q1, CACI secured contract awards totaling $5 billion, with approximately 60% attributed to new business [4] - The total backlog as of September 30, 2025, was $31.4 billion, a 9.8% increase from $28.6 billion a year ago, while the funded backlog rose 31.3% to $4.2 billion from $3.2 billion [5] Revenue Breakdown - The Department of Defense contributed 51.5% to total revenues, with the Intelligence Community at 26.1%, Federal Civilian Agencies at 18%, and Commercial and other customers at 4.4%. Revenue growth from these segments was 8.5%, 11.6%, 16.9%, and 20.2%, respectively [6] - Prime Contractor and Subcontractor revenues accounted for 90.8% and 9.2% of total revenues, with increases of 10.4% and 19.4%, respectively [7] Contract Types and Revenue Segments - Revenue contributions by contract type were 60.5% from cost-plus-fee-type, 26.7% from fixed-price, and 12.8% from time and material-type contracts. Cost-plus-fee-type and fixed-price contracts grew by 8% and 28.7%, while time and material-type contracts saw a decline of 2.7% [8] - Expertise and Technology segments accounted for 43.1% and 56.9% of total revenues, with Technology revenues increasing by 21.7% while Expertise revenues slightly declined by 0.1% [8] Operating Income and Cash Flow - Operating income for the quarter was $212.3 million, reflecting an 18% year-over-year increase, with an operating margin expansion of 60 basis points to 9.3% [9] - Adjusted EBITDA rose 24.4% year over year to $268.6 million, with an adjusted EBITDA margin increase of 120 basis points to 11.7% [9] - As of September 30, 2025, CACI had cash and cash equivalents of $133 million, an increase from $106.2 million in the previous quarter, and total long-term debt decreased to $2.71 billion from $2.85 billion [10] Fiscal Guidance - CACI maintains its fiscal 2026 revenue guidance between $9.2 billion and $9.4 billion, with adjusted net income projected between $605 million and $625 million, and non-GAAP earnings per share expected in the range of $27.13 to $28.03 [12] Market Outlook - Estimates for CACI have been trending upward, indicating a positive outlook, with the stock currently holding a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [15]

Market Performance - Major U.S. indexes showed mixed performance last week, with the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average declining by 2.7%, 1.4%, and 0.5% respectively [1] - Investors are shifting focus from high-valuation technology and AI stocks to more defensive sectors due to market volatility [1] Federal Reserve and Economic Data - The end of a 43-day government standoff has reduced political risks, but delays in key economic data releases have created uncertainty for the Federal Reserve and investors [2] - The Fed is balancing economic growth and inflation, with inflation remaining above the 2% target and a resilient labor market casting doubt on December rate cut expectations [2] Zacks Research Performance - Zacks Research has provided guidance that led to significant stock performance, with Macy's shares increasing by 14.9% since its upgrade to Zacks Rank 1 on September 18, outperforming the S&P 500's 2.2% increase [3][4] - Fresnillo plc also saw a 7.2% return since its upgrade to Zacks Rank 1 on September 19, compared to the S&P 500's 1.8% increase [4] Zacks Model Portfolio Returns - A hypothetical portfolio of Zacks Rank 1 stocks returned +8.64% in 2025 through September 1, outperforming the S&P 500's +7.60% [4] - The Zacks Model Portfolio has outperformed the S&P 500 index by over 12 percentage points since 1988, with an annualized average return of +23.8% compared to +11.3% for the S&P 500 [5] Specific Stock Performances - United Natural Foods, Inc. (UNFI) shares increased by 32.4% after its Zacks Recommendation was upgraded to Outperform [7] - Caterpillar Inc. (CAT) gained 35.9% over the past 12 weeks, while CACI International Inc. (CACI) returned 20.1% during the same period [10] Earnings Certain Admiral Portfolio (ECAP) - The ECAP returned -1.30% in Q3 2025, underperforming the S&P 500's +8.1% gain, and +2.72% year-to-date compared to the S&P 500's +14.84% [15] - The portfolio aims to minimize capital loss by holding shares of companies with a proven track record of earnings stability [16] Earnings Certain Dividend Portfolio (ECDP) - Johnson & Johnson (JNJ) returned 10.9% over the past 12 weeks, while UnitedHealth Group (UNH) increased by 5.9% [18] - The ECDP returned -0.01% in Q3 2025, underperforming the S&P 500's +8.1% gain [20] Top 10 Stock Portfolio - MasTec, Inc. (MTZ) has jumped 41.2% year-to-date, outperforming the S&P 500's 14.7% increase [22] - The Top 10 portfolio has produced a cumulative return of +2,553.1% since 2012, significantly outperforming the S&P 500's +545.2% [24]

Core Insights - Optimove is enhancing its partnership with CACI, integrating CACI as an official Solution Partner to leverage data-driven marketing and technology solutions [1][2] Partnership Benefits - The collaboration combines Optimove's AI-powered Positionless Marketing Platform with CACI's expertise in customer experience and data challenges, enabling brands to unlock greater value and accelerate CRM strategies [2][6] - CACI's DataHub solution will improve data quality and reliability, essential for effective customer marketing strategies [5] Strategic Approach - CACI emphasizes a collaborative approach to understand unique business challenges, creating strategic blueprints that align people, processes, and technology [3] - The partnership has already seen success with Entain, addressing technology complexity and operational inefficiencies, leading to accelerated CRM transformation [3][4] Technology and Innovation - Optimove's platform enhances marketing capabilities through AI, allowing for personalized customer experiences at scale [3][6] - The Positionless Marketing concept has shown to improve campaign efficiency by 88%, enabling marketers to engage customers more effectively [7] Industry Recognition - Optimove has been recognized as a Visionary in Gartner's Magic Quadrant for Multichannel Marketing Hubs for two consecutive years, highlighting its AI-driven decision-making and campaign orchestration capabilities [8] CACI's Expertise - CACI specializes in data and technology consultancy, helping brands utilize first-party data effectively and providing insights into customer demographics and behaviors [11][12][13][14]

Group 1 - CACI International Inc. has faced significant challenges due to government cutbacks in spending and the recent government shutdown, which have negatively impacted investor sentiment [1] - The market appears to have stabilized recently, suggesting a potential recovery for CACI International Inc. [1] Group 2 - The company is characterized by a focus on high-quality stocks and businesses that are managed by disciplined capital allocators, which is a favorable investment philosophy [1]

Core Insights - Zonte Metals Inc. has made significant advancements in its Cross Hills Copper Project, including the discovery of copper and silver mineralization at the N Dunns target and the progression of multiple large-scale IOCG targets towards drill testing [1][7]. Exploration Progress - Over the past seven years, Zonte has transformed the Cross Hills Copper Project from an early-stage property into a district-scale IOCG system with nine large, drill-ready targets [2]. - Approximately $5 million has been invested in systematic exploration, including geophysics, geochemistry, and geological mapping, enhancing the project's attractiveness to mining companies [4]. Geophysical Findings - Recent high-resolution gravity surveys have identified strong, deep-seated anomalies that may represent mineralized systems, with dimensions reaching up to 3,300 meters in length, 600 meters wide, and 1,000 meters in depth [3]. - The N Dunns target, a large geophysical anomaly, measures up to 3,300 meters in length and 400-600 meters wide, with IOCG-style mineralization observed at the surface [5]. Mineralization Discovery - Surface copper-silver mineralization was found in narrow veins (2-15 cm wide) at the N Dunns target, with assay results showing 0.5% Cu and 14.3 g/t Ag [5]. - The presence of new surface drill hole discoveries confirms a fertile, copper-bearing hydrothermal system [8]. Future Plans - The N Dunns target will advance to the drill stage, with further exploration planned to include infill and extensions to both soil and gravity grids [6]. - The CEO of Zonte Metals emphasized the project's IOCG potential and the importance of transitioning into the drill phase to unlock the value of this underexplored district [7].

Market Overview - The Thai stock market showed strong performance, with the Benchmark Thai Index SET gaining 2.3% to close at 1,344.46 points, marking its highest level since January 30 [3][9]. - JPMorgan has adjusted target prices for several key companies, indicating a bullish sentiment in the market [8][10]. Regional Developments - The Prime Minister of Malaysia proposed the establishment of a medical supply reserve among ASEAN+3 member states to enhance regional public health preparedness [4][9]. International Relations - Brazilian President Luiz Inácio Lula da Silva expressed optimism about reaching a deal with the U.S. and emphasized the importance of improving product quality for exports [5][9]. - The EU's Costa called for concrete progress in relations with China, urging assistance to end Russia's war against Ukraine and addressing concerns over China's export controls on key raw materials [6][7][9].

Core Insights - CACI International Inc. is a significant player in the information technology and services sector, primarily serving the U.S. government with IT solutions and professional services [1] - UBS has maintained a "Buy" rating for CACI and increased the price target to $759, while the current stock price is $585.37 [1] - CACI's stock price has shown a slight increase of approximately 0.78% during the Q1 2026 earnings call [2] Financial Performance - During the Q1 2026 earnings call, key executives provided insights into the company's financial performance and strategic plans [2] - CACI's stock price is currently $589.11, reflecting a $4.54 increase from the previous price [2] - The trading range for CACI today is between $570 and $589.53, indicating some volatility [3] Market Position - CACI's market capitalization is approximately $12.96 billion, showcasing its substantial presence in the market [3] - Over the past year, CACI's stock has experienced a high of $596.95 and a low of $318.6, indicating significant growth [3] - Today's trading volume for CACI is 27,005 shares, reflecting investor interest and market activity [4]

Group 1 - CACI International's fiscal 2026 started strong with a revenue increase of 11% year over year, reaching $2.29 billion, and a nearly 14% rise in non-GAAP net income to just below $152 million ($6.85) [2][6] - The company exceeded the consensus analyst estimate for revenue of $2.26 billion and significantly outperformed the expected adjusted per-share profitability of $6.14 [3][6] - CACI secured $5 billion in contract awards during the quarter, contributing to growth in both total and funded backlog [3] Group 2 - CACI maintained its revenue guidance for fiscal 2026, projecting between $9.2 billion and $9.4 billion, with adjusted net income expected to be between $605 million and $625 million, translating to $27.13 to $28.03 per share [4]

Revenue and Growth - Revenues for the three months ended September 30, 2025, were $2,287,623, representing an increase of 11.2% compared to $2,056,889 in 2024[68] - The Department of Defense (DoD) revenues increased by 8.5% to $1,179,626, while Intelligence Community (IC) revenues rose by 11.6% to $596,429[69] - The total backlog as of September 30, 2025, was $33.9 billion, an increase of 4.6% from $32.4 billion a year ago, with a funded backlog of $5.4 billion[75] Cost Efficiency - Direct costs as a percentage of revenue decreased from 68.8% in 2024 to 67.6% in 2025, indicating improved cost efficiency[70] - Indirect costs and selling expenses were 20.7% of revenue in 2025, slightly down from 20.8% in 2024, driven by cost efficiencies[71] Net Income and Taxation - Net income for the three months ended September 30, 2025, was $124,810, reflecting a 3.9% increase from $120,177 in 2024[68] - The effective income tax rate increased to 24.9% in 2025 from 22.9% in 2024, primarily due to state income taxes and research and development tax credits[74] Market Position and Outlook - The company anticipates continued bipartisan support for defense and national security spending, particularly in the current global threat environment[60] - The company is well-positioned to win new business in its addressable market, which is expected to grow due to increased government spending in national security areas[66] Liquidity and Cash Flow - The company’s liquidity is supported by cash and cash equivalents, operations-generated cash, and a revolving credit facility allowing borrowings of up to $1,975 million[77] - The Company has a $3,200.0 million senior secured credit facility, including a $1,225.0 million term loan facility, with no outstanding borrowings under the Revolving Facility as of September 30, 2025[78] - Net cash provided by operating activities increased by $136.4 million to $171,065 thousand for the three months ended September 30, 2025, compared to $34,661 thousand for the same period in 2024[79] - Net cash used in investing activities decreased by $10.5 million to $(1,214) thousand for the three months ended September 30, 2025, primarily due to refunds from acquisitions[80] - Net cash used in financing activities decreased by $421.6 million to $(142,238) thousand for the three months ended September 30, 2025, mainly due to a decrease in net borrowings[80] International Operations - Approximately 3.4% of the Company's total revenues during the three months ended September 30, 2025, were generated from International Operations, compared to 2.9% in 2024[86] Interest Rate Management - The Company has entered into floating-to-fixed interest rate swap agreements for an aggregate notional amount of $900.0 million to manage interest rate fluctuations[85] - With every one percent fluctuation in the applicable interest rate, interest expense on the Company's variable rate debt would have fluctuated by approximately $2.5 million for the three months ended September 30, 2025[85] Currency Holdings - As of September 30, 2025, the Company held approximately $70.2 million in pounds sterling and euros, which are generally available to fund ordinary business operations[86] Financial Policies - The Company believes that internally generated funds, available bank borrowings, and cash and cash equivalents will provide the necessary liquidity for ongoing operations over the next twelve months[81] - There have been no significant changes to the Company's critical accounting policies as disclosed in the Annual Report for the year ended June 30, 2025[83]

Core Insights - CACI International Inc. reported better-than-expected results for Q1 of fiscal 2026, with shares increasing by 1.7% in after-hours trading [1] - The company achieved non-GAAP earnings of $6.85 per share, exceeding the Zacks Consensus Estimate by 10.48% and reflecting a year-over-year increase of 15.5% [1][10] - Revenues for the quarter reached $2.29 billion, surpassing the consensus mark by 1.66% and showing an 11.2% increase from the previous year, driven by 5.5% organic growth [2][10] Financial Performance - CACI's operating income for Q1 was $212.3 million, representing an 18% year-over-year increase, with an operating margin of 9.3% [8] - Adjusted EBITDA rose 24.4% year-over-year to $268.6 million, with an adjusted EBITDA margin of 11.7% [8] - The company generated operating cash flow of $160 million, up 162.8% from the previous year, and free cash flow of $143 million, significantly higher than $49.4 million in the year-ago quarter [11] Contract Awards and Backlog - Total contract awards in Q1 amounted to $5 billion, with approximately 60% attributed to new business [3][10] - The total backlog as of September 30, 2025, was $31.4 billion, a 9.8% increase from $28.6 billion a year ago, while the funded backlog rose 31.3% to $4.2 billion [4] Customer and Revenue Breakdown - The Department of Defense contributed 51.5% of total revenues, with the Intelligence Community at 26.1%, Federal Civilian Agencies at 18%, and Commercial and other customers at 4.4% [5] - Revenue growth from various segments included an 8.5% increase from the Department of Defense and a 20.2% increase from Commercial and other customers [5] Contract Types and Revenue Sources - Revenue contributions by contract type included 60.5% from cost-plus-fee-type contracts, 26.7% from fixed-price contracts, and 12.8% from time and material-type contracts [7] - Revenues from cost-plus-fee-type contracts grew 8%, while fixed-price contracts surged 28.7%, although time and material-type contracts saw a decline of 2.7% [7] Guidance for Fiscal 2026 - CACI anticipates revenues between $9.2 billion and $9.4 billion for fiscal 2026, with a midpoint estimate of $9.3 billion, indicating an 8.1% year-over-year increase [12] - Adjusted net income is projected between $605 million and $625 million, with non-GAAP earnings per share expected in the range of $27.13 to $28.03 [13]