CACI International's third quarter performance was shaped by a modest shortfall in revenue versus Wall Street expectations, despite continued year-on-year growth. Management attributed the quarter’s results primarily to a higher mix of technology-driven contracts and successful execution on major awards, such as the Apollo and SOF-TOPS II programs. CEO John Mengucci pointed to “superior execution and a higher mix of differentiated technology” as key factors supporting margins and free cash flow. The company’s ability to maintain a double-digit operating margin and grow its backlog reflected ongoing demand across national security and intelligence customers.
Is now the time to buy CACI? Find out in our full research report (it’s free for active Edge members).
CACI (CACI) Q3 CY2026 highlights:
- Revenue: $2.47 billion vs analyst estimates of $2.51 billion (8.2% year-on-year growth, 1.4% miss)
- Adjusted EPS: $7.66 vs analyst estimates of $6.60 (16% beat)
- Adjusted EBITDA: $328.8 million vs analyst estimates of $292.2 million (13.3% margin, 12.6% beat)
- The company slightly lifted its revenue guidance for the full year to $10.8 billion at the midpoint from $10.75 billion
- Management slightly raised its full-year Adjusted EPS guidance to $33.63 at the midpoint
- Operating Margin: 10%, in line with the same quarter last year
- Backlog: $34 billion at quarter end, in line with the same quarter last year
- Market Capitalization: $13.68 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from CACI’s Q3 earnings call
- Sheila Karin Kahyaoglu (Jefferies) asked about the drivers behind CACI’s above-peer growth and margin strength. CEO John Mengucci credited “intentional leadership, disciplined execution, and investing ahead of need,” while highlighting the company’s unique positioning and long-term strategy.
- Gavin Parsons (UBS Financial) sought insight into the payback period for technology investments, specifically SkyValor. Mengucci stressed that investments are focused on long-term capability rather than quarterly results, saying, “We’re not going to invest for the next quarter. We’re going to invest for the next decade.”
- John Godin (Citi) queried whether recent margin improvements were sustainable and asked about the growth-versus-margin tradeoff. CFO Jeffrey MacLauchlan responded that CACI continues to see “opportunities for continued modest margin improvement” while investing for growth.
- Matt Martolo (Melius Research) questioned how CACI is handling supply chain inflation and lead times. Mengucci pointed to proactive design adjustments and early investment in high-risk components, while MacLauchlan highlighted frequent pricing opportunities due to contract structure.
- Seth Seifman (JPMorgan) explored the impact of increased fixed-price contract work and recent executive hires. Mengucci explained that fixed-price contracts are pursued when technical risk is well understood and that new executive talent is helping scale production and drive growth in technology segments.
Catalysts in upcoming quarters
Going forward, our analysts will be watching (1) the scale-up of new manufacturing centers and their impact on delivery speed and cost efficiency, (2) the conversion of major contract wins like Apollo and SOF-TOPS II into revenue and margin contributions, and (3) the company’s ability to manage supply chain challenges while sustaining margin expansion. Progress in space and electronic warfare product lines will also be key indicators of execution.
CACI currently trades at $618.87, in line with $623.90 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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