Executive Summary

CACI delivered a strong Q1 FY26: revenue $2,287.6 million (+11.2% YoY), EBITDA margin 11.7%, adjusted EPS $6.85 (+15.5% YoY) and free cash flow $142.96 million; management reaffirmed full-year FY26 guidance and highlighted resilience despite a federal shutdown .
Significant commercial momentum: $5.0 billion in awards (book-to-bill 2.2x), funded backlog up 25.6% YoY to $5.4 billion; total backlog reached $33.9 billion (+4.6% YoY) .
Versus Wall Street, CACI beat consensus on revenue ($2,287.6mm vs $2,253.8mm*) and EPS ($6.85 vs $6.15*), with CFO attributing margin strength to mix and timing of higher-margin software-defined technology deliveries .
Stock reaction catalysts: robust bookings and backlog growth, reaffirmed guidance in a shutdown environment, and growing demand for EW/counter‑UAS, network modernization and digital application modernization (e.g., Merlin C‑UAS, TIGS/RMT counter‑space, SuperMod, Beagle, JTMS) .

What Went Well and What Went Wrong

What Went Well

Strong topline and profitability: revenue up 11.2% YoY; adjusted EPS up 15.5% YoY; EBITDA margin 11.7% (up ~120 bps YoY per CFO) .
Bookings strength and visibility: $5.0B awards, 2.2x book-to-bill; funded backlog +25.6% YoY to $5.4B; management: “Our $5 billion of contract awards and growth in both total and funded backlog demonstrate our focus on critical, well-funded national security priorities.” .
Strategic wins and differentiation: network modernization, counter‑UAS and counter‑space progress; CEO: “Merlin’s counter‑UAS capabilities…detection range of up to 75 kilometers…industry‑leading wireless capabilities that address…cellular networks.” .

What Went Wrong

Working capital friction from shutdown: CFO cited “slight…cash collections disruption” and “administrative sluggishness,” with collections 10–15% off and de minimis revenue impact in single‑digit millions expected to be recovered .
DSO increased YoY to 56 days (from 47 days YoY), reflecting collections dynamics; MARPA impact excluded (7 vs 6 days) .
Elevated interest expense: interest expense and other nearly doubled YoY to $46.2mm, partially offsetting operating strength .

Financial Results

Headline Metrics vs Prior Quarters (USD Millions unless noted)

Metric	Q3 FY25 (3/31/2025)	Q4 FY25 (6/30/2025)	Q1 FY26 (9/30/2025)
Revenues	$2,166.98	$2,304.14	$2,287.62
Income from operations	$196.37	$206.68	$212.28
Net income	$111.86	$157.86	$124.81
Diluted EPS ($)	$5.00	$7.14	$5.63
Adjusted net income	$139.34	$185.81	$151.74
Adjusted diluted EPS ($)	$6.23	$8.40	$6.85
EBITDA	$253.51	$264.54	$268.61
EBITDA margin (%)	11.7%	11.5%	11.7%
Free Cash Flow	$187.93	$139.11	$142.96
DSO (days)	55	56	56

Notes: Q1 YoY change: revenue +11.2%; adjusted EPS +15.5%; EBITDA +24.4% .

Revenue Mix – Customer Type (Q1 FY26 vs Q1 FY25)

Customer	Q1 FY25 (9/30/2024)	Q1 FY26 (9/30/2025)	YoY Change
Department of Defense	$1,087.29	$1,179.63	+$92.34 (+8.5%)
Intelligence Community	$534.34	$596.43	+$62.09 (+11.6%)
Federal civilian agencies	$352.22	$411.73	+$59.51 (+16.9%)
Commercial and other	$83.04	$99.84	+$16.80 (+20.2%)
Total	$2,056.89	$2,287.62	+$230.73 (+11.2%)

Revenue Mix – Contract Type (Q1 FY26 vs Q1 FY25)

Contract Type	Q1 FY25	Q1 FY26	YoY Change
Cost‑plus‑fee	$1,280.01	$1,382.63	+$102.62 (+8.0%)
Fixed‑price	$475.26	$611.49	+$136.24 (+28.7%)
Time‑and‑materials	$301.62	$293.50	−$8.12 (−2.7%)
Total	$2,056.89	$2,287.62	+$230.73 (+11.2%)

Revenue Mix – Expertise vs Technology (Q1 FY26 vs Q1 FY25)

Category	Q1 FY25	Q1 FY26	YoY Change
Expertise	$988.27	$986.89	−$1.37 (−0.1%)
Technology	$1,068.62	$1,300.73	+$232.11 (+21.7%)
Total	$2,056.89	$2,287.62	+$230.73 (+11.2%)

Operating KPIs and Backlog

KPI	Q3 FY25	Q4 FY25	Q1 FY26
Contract awards ($mm)	$2,496.25	$2,637.34	$4,998.68
Book‑to‑bill (x)	1.2x	N/A	2.2x
Total backlog ($B)	$31.4	$31.4	$33.9
Funded backlog ($B)	$4.2	$4.2	$5.4
Net cash from ops excl. MARPA ($mm)	$204.17	$167.07	$159.97

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenues ($B)	FY26	$9.2–$9.4	$9.2–$9.4	Maintained
Adjusted net income ($mm)	FY26	$605–$625	$605–$625	Maintained
Adjusted diluted EPS ($)	FY26	$27.13–$28.03	$27.13–$28.03	Maintained
Diluted weighted avg shares (mm)	FY26	22.3	22.3	Maintained
Free cash flow ($mm)	FY26	≥$710	≥$710	Maintained; includes ~$50mm Section 174 benefit and ~$40mm cash tax refund assumptions

Additional qualitative guidance: CFO expects Q2 EBITDA margin “about 11%,” and sees a smaller H2 margin step-up than recent years given strong Q1 mix timing .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 FY25 and Q4 FY25)	Current Period (Q1 FY26)	Trend
Mix shift toward technology	Tech grew faster than expertise; EBITDA margin 11.7% (Q3) and 11.5% (Q4); FY26 guide set	Tech margins strong; timing of higher‑margin software‑defined deliveries drove margin; revenue +11.2%, organic +5.5%	Improving margin quality; technology mix rising
Bookings/backlog visibility	Q3 awards $2.5B; Q4 awards $2.6B; backlog ~$31.4B; funded backlog +11% YoY (Q4)	Awards $5.0B; book‑to‑bill 2.2x; total backlog $33.9B; funded backlog $5.4B (+25.6% YoY)	Strengthening demand and visibility
Counter‑UAS/EW	Continued awards and portfolio investment noted in Q3	CEO detailed Merlin (75km detection, cellular network capability); international orders (Canada); EW portfolio ~$2B revenue p.a.	Expanding capability and demand
Counter‑space	Space terminal and TIGS mentioned around FY25	TIGS award ($240mm) and Space Force RMT initial production order post‑quarter	Building program base
Network modernization	Persistent theme; enterprise modernization (Q4 awards)	~$400mm Air Force task orders; SuperMod CSFC authorization; IBS network award ($73mm)	Accelerating awards and execution
Digital application modernization	Beagle program and platform-scale modernization	Won $1.6B JTMS using SAP S/4HANA; expanding AI tools in agile development	Scaling programs with AI/tooling
Shutdown impact	Not applicable in Q3/Q4	Minor collections/revenue disruptions; guidance reaffirmed; funded backlog prepared ahead of shutdown	Well‑managed; limited impact

Management Commentary

CEO framing: “CACI’s exceptional start to fiscal year 2026 underscores our differentiated position…strong financial results across the board, including robust free cash flow driven by double‑digit revenue growth and strong profitability.”
Strategic positioning: “Our performance…gives us increased confidence…deliver on our fiscal year 2026 commitments, achieve our three‑year financial targets.”
Counter‑UAS differentiation: “Merlin’s…non‑kinetic capabilities…detection range of up to 75 kilometers…industry‑leading wireless capabilities that address…cellular networks.”
Network modernization: “Without modernized networks, DOD priorities like NGC2 and JADC2 either won’t be as effective or just won’t be possible…task orders…represent approximately $400 million of awards.”
Margin drivers: “EBITDA margin of 11.7%…driven primarily by strong program execution, timing of some higher margin software‑defined technology deliveries, and overall mix.”

Q&A Highlights

Government shutdown: CFO/CEO indicated de minimis revenue impact (single‑digit millions) and 10–15% collections slowdown; reaffirmed FY26 guidance with ranges encompassing outcomes; expectation to make up activity over the year .
Bookings cadence: Strong Q1 win rate; pipeline dynamics are inherently lumpy; submitted pipeline down amid strong awards; near‑term awards pace may moderate during shutdown, but TTM book‑to‑bill is 1.3x .
Counter‑UAS market size/funding: CEO sees “burgeoning market” with Golden Dome/DHS funds likely “multiples of billions”; EW portfolio ~$2B annual revenue; differentiation via deployed, proven systems .
Technology margins/mix: Technology not monolithic; segment mix drove strong margins; second‑half step‑up expected smaller given strong Q1 .
International opportunity: Expansion from 5 to 15 NATO countries; pursuing direct commercial sales, licensing/co‑production to satisfy local content preferences .
Hiring environment: Applicant volume at all‑time highs (~500k FY25); 40% hires from referrals; continued hiring on wins .

Estimates Context

Q1 FY26 vs S&P Global consensus: Revenue $2,287.6mm vs $2,253.8mm*; EPS (Adjusted/Normalized) $6.85 vs $6.15*; both beats. Number of estimates: 13 for revenue and EPS*.
CFO commentary supports the beat: margin mix and timing of software‑defined deliveries, strong program execution .

Metric	Q1 FY26 Actual	Q1 FY26 Consensus*	# of Estimates*	Result
Revenue ($mm)	$2,287.62	2,253.79*	13*	Beat
Adjusted/Normalized EPS ($)	$6.85	6.15*	13*	Beat

Values retrieved from S&P Global.*

Where estimates may adjust: Raised confidence in tech mix/margins and stronger bookings could drive upward revisions to FY26 margin trajectory and outer‑year revenue for EW/counter‑UAS, network modernization and application modernization .

Key Takeaways for Investors

Q1 FY26 execution was robust across revenue, margins and cash flow; reaffirmed FY26 guidance amidst a shutdown indicates resilient portfolio and strong funded backlog .
Demand is broad‑based: Technology mix rising (+21.7% YoY), fixed‑price revenue up 28.7% YoY; healthy awards across DOD, IC, DHS and international partners .
Bookings momentum and backlog provide visibility: $5.0B awards (2.2x B2B), total backlog $33.9B with funded backlog +25.6% YoY, duration >6 years for Q1 awards .
Margin quality improving: CFO highlighted mix/timing advantages; guides Q2 EBITDA margin ~11% with less pronounced H2 step‑up versus recent years .
Strategic catalysts: Merlin counter‑UAS, TIGS/RMT counter‑space, SuperMod CSFC authorization, IBS and JTMS modernization—positioned for Golden Dome/DHS reconciliation funding ramps .
Near‑term trading: Positive estimate revisions likely after beats; backlog/bookings strength and shutdown‑resilient guide are supportive for sentiment .
Medium‑term thesis: Software‑defined EW/counter‑UAS and network/application modernization at scale underpin sustained growth, mix‑driven margins and FCF compounding .

CACI INTERNATIONAL INC /DE/ (CACI)·Q1 2026 Earnings Summary