Why Is CACI International (CACI) Up 1.8% Since Last Earnings Report?

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]