CACI Stock Gains as Q1 Earnings and Revenues Surpass Estimates

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]