Given the transformation towards a defense tech hardware business and recent executive hires with hardware/Space backgrounds, will CACI further accelerate towards being a software-defined hardware company, potentially deemphasizing the 'expertise' side?

John Mengucci confirmed the strategic talent acquisition to scale the business, particularly in manufacturing and EW. He emphasized that 'expertise' (now called operational support or deeply embedded mission support) will always be part of the company, providing critical mission knowledge that informs technology investments. The goal is to build software-based technology and support for an ever-changing battlefield, with the new executives enabling conversion of demand into stronger financial results. “We're always going to have expertise in this company, okay? We like to call it operational support. We like to call it deeply embedded with the mission because at the end of the day, folks you want us to have the knowledge of where the mission is going long ahead of where everybody else does.”

With book-to-bill potentially not being the right metric due to non-traditional procurement, what are the expectations for funded bookings in the guide, and what is the current status of funded bookings?

Jeff MacLauchlan highlighted the 29% year-over-year increase in funded backlog (sixth double-digit increase in 7 quarters) and the growth in bids under evaluation from $4 billion to nearly $11 billion, while expected submissions remained stable at $22 billion. John Mengucci added that non-traditional methods like OTAs (over double FY24/FY25 combined in FY26) impact award values but lead to faster conversion of lower-dollar OTAs into larger production programs, positively impacting company value and future growth. “While these methods continue to be very beneficial to CACI, metrics like book-to-bill, contract duration and pipeline may need to be considered differently as these methods become more prevalent.”

Fixed price revenue is almost 35% of the mix; is this expected to continue climbing? Also, what is the expected EBITDA cadence for FY27, given the historical second-half weighting?

John Mengucci confirmed that fixed-price work is expected to continue climbing, aligning with CACI's 'Invest ahead of customer need' strategy and agile software development. He noted that OTAs drive this trend, leading to higher EBITDA margins and free cash flow growth. Jeff MacLauchlan outlined FY27 cadence: revenue distribution of roughly 45% H1 / 55% H2, cash flow of 1/3 H1 / 2/3 H2, and margin variability of 150-200 bps over the year, with a heavier back half. “I honestly believe that firm fixed price works fantastically for a customer and it works just as equally fantastic for us. So if you look at OTAs, that is going to continue to drive that work. So I don't think quarter 4 is an anomaly. I think we're just hitting our stride.”

CACI

CACI (CACI) Q4 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q4 FY26)· Information Technology· Aug 6, 2026

Source: earnings call transcript

Executive summary

CACI Q4 FY26 — Record Revenue, EBITDA, and Free Cash Flow with Strong FY27 Outlook

CACI International delivered a strong Q4 and full FY26, surpassing all financial expectations with record revenue, EBITDA, and free cash flow. The company's technology-first national security strategy, focusing on enduring priorities and software-defined solutions, is driving accelerated organic growth and margin expansion. Management provided an optimistic FY27 outlook, projecting continued double-digit revenue growth and significant free cash flow generation, positioning CACI to outperform its 3-year targets.

Highlights

Full year FY26 revenue grew 11% to $9.6 billion, exceeding expectations.
Full year FY26 EBITDA margin increased 110 basis points to 12.3%, reaching nearly $1.2 billion annually.
Full year FY26 free cash flow surged 68% per share to $735 million, exceeding initial guidance.
Q4 FY26 revenue grew 17.6% year-over-year (11.6% organic) to $2.7 billion.
Q4 FY26 EBITDA margin was 13%, 150 basis points higher than last year.

Concerns

Slower Award Environment
Additional Interest and Tax Expense
Government Shutdowns and Budget Uncertainty

Guidance & targets

Category	Target	Timeline	Confidence
FY27 Revenue	$10.65B - $10.85B high materiality	FY27	High
FY27 EBITDA Margin	high 12% range high materiality	FY27	High
FY27 Adjusted Net Income	$735M - $755M medium materiality	FY27	High
FY27 Adjusted Diluted EPS	$32.96 - $33.86 high materiality	FY27	High
FY27 Free Cash Flow	at least $900M high materiality	FY27	High
FY27 Free Cash Flow per share growth	approximately 22% medium materiality	FY27	High
Leverage Ratio	low 3s medium materiality	by June of 2027 · FY27	High
First Quarter Organic Growth	low single digits medium materiality	Q1 · FY27	Medium
3-year Free Cash Flow Target (FY25-FY27)	at least $2.1B high materiality	FY25-FY27	High
3-year EBITDA Margin Target (FY25-FY27)	11.9% to 12% high materiality	FY25-FY27	High
3-year Revenue Target (FY25-FY27)	meeting or exceeding high end of high single-digit annual growth rate high materiality	FY25-FY27	High

CACI operating KPIs by quarter

CACI operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q3 FY26	This call Jun 2026 Q4 FY26	Change vs prior quarter
Employees	27K As is always the case, our success is driven by our now 27,000 employees who are ever vigilant and expanding the elements of national security. Source: earnings call transcript	27K As is always the case, our success is driven by our 27,000 employees who are ever vigilant in expanding our limits of national security. Source: earnings call transcript	0%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Total Backlog $32M Q4 FY26

up 2% YoY

Funded Backlog not stated Q4 FY26

up 29% YoY

Sixth time in the last 7 quarters with double-digit year-over-year growth.

Book-to-bill ratio 1.1x FY26

Product announcements

Product	Type	Timeline
Spectral Program	milestone	H2 FY27 for low rate digital production
SkyValor Counter-UAS System	launch	—
Domestic Shield Program	launch	—
Classified Counter Space Program	launch	—
Enterprise-Based Terminal (EST) Program	milestone	—
Artemis II Mission Support	milestone	—

Deals & partnerships

ARKA Integration of ARKA's sensing and AI-enabled analytics with CACI's technology to create a leader in multi-source intelligence.

Completed the integration of ARKA. Andreas Nonnenmacher, former CEO of ARKA, now leads combined space capabilities.

SAP and AWS Partnering to deliver an integrated solution for the Joint Transportation Management System modernization program.

Ramping up the Joint Transportation Management System modernization program (U.S. Transcom), replacing fragmented logistics and financial systems.

Oracle Partnering to deliver an integrated HR shared service solution to the Office of Personnel Management.

Solution will support 2 million users across 96 federal agencies.

Risks & headwinds

Slower Award Environment Past few years

Extended slower award environment over the past few years.

Mitigation:Focus on enduring national security priorities, differentiated capabilities, and long-duration work. Increased use of non-traditional procurement methods (CSOs, OTAs) which convert faster.

Additional Interest and Tax Expense FY26

$120M

Mitigation:Robust operational execution and continued strength of the business allowed for 12.7% adjusted diluted EPS growth despite this headwind.

Government Shutdowns and Budget Uncertainty Past few years

Multiple lengthy government shutdowns, changes to government acquisition process.

Mitigation:Strategy built on serving enduring national security priorities and delivering differentiated technology, not on an easy operating environment. Long contract durations (3 to 6 years) provide stability.

What to watch in Q1 FY27

Q1 FY27 Organic Growth

Q1 FY27

Current 11.6% (Q4 FY26 organic)

Target low single digits

Why it matters

This will indicate the near-term organic growth trajectory and the expected first-half slowdown before a stronger second half.

In addition to our expectation of stronger organic growth in the second half versus the first half, we expect first quarter organic growth to be in the low single digits.

Find out whether CACI delivers this. Inve re-checks your case every morning.

Q&A highlights

What factors have allowed CACI's organic growth to accelerate and diverge from the industry average in recent years, especially since 2024?

Management attributed the acceleration to a clear strategic plan initiated in 2019, focusing on technology and expertise interplay, a business development reset to bid larger programs, deep mission understanding from embedded personnel, and significant investment in a differentiated software-based technology portfolio. This priming period from 2019-2023 led to an 'explosion' of growth from 2024 onwards, driven by longer contract durations (6 years vs. 3), commercially available tech, and workforce reshaping.

“It's all around differentiating. It's all around, unfortunately, continually being compared against companies who have very little in common with.”

asked by Gavin Parsons · answered by John Mengucci

2 min read 6 chapters

Detailed narrative

Strategic Evolution and Technology-First Approach

CACI has transformed into a technology-first national security company, focusing on enduring national security priorities with narrow, deep funding streams. This strategy involves deep mission knowledge, delivering software-defined technology with speed and agility, and investing ahead of customer needs. The company's financial results in FY26, including 11% revenue growth and 12.3% EBITDA margin, are attributed to this strategic execution, demonstrating durability even in slower award environments.

Key Accomplishments in Electronic Warfare and Space

In Electronic Warfare, CACI's Spectral program achieved Milestone-C and is moving into low-rate digital production, expected in H2 FY27. The SkyValor counter-UAS system was selected by the Department of War for homeland defense, securing a $500 million award for the Domestic Shield program.

In Space, the integration of ARKA was completed, leading to a significant classified counter space program win against traditional primes and advancement to Phase 3 of the Space Force's enterprise-based terminal program. These wins leverage adaptable software and purpose-built hardware.

Digital Network Technology and Operational Support

CACI is ramping up the Joint Transportation Management System modernization program for U.S. Transcom, partnering with SAP and AWS. They are also delivering an integrated HR shared service solution with Oracle for the Office of Personnel Management, supporting 2 million users.

Modernization efforts for critical national security networks continue with the Air Force, Army, and DIA. The mission-aligned operational support business, with over 1,400 embedded employees globally, provides intelligence analysis and mission planning, offering differentiated insight into customer needs.

AI Integration and Leadership Strengthening

The company is actively leveraging AI tools across its software development lifecycle to reduce development time, improve quality, and enhance program profitability. AI-developed solutions from ARKA are being extended to additional national security missions for processing massive amounts of sensitive data.

CACI has also strengthened its leadership team with key hires, including Dr. Dave Young as COO, Tom Kirkand leading the EW business, and Chris Monoski as EVP of Manufacturing, to scale the technology-first business.

Market Demand and Procurement Trends

CACI operates in a total addressable market exceeding $300 billion, concentrated on well-funded national security priorities. Customers are increasingly using non-traditional procurement methods like CSOs, OTAs, and FAR Part 12 commercial acquisitions, which aligns with CACI's strategy of investing ahead of need and delivering adaptable technology quickly.

The company's OTA award value in FY26 more than doubled the combined values of FY24 and FY25, indicating a significant shift in procurement.

Balance Sheet and Capital Structure

Following the ARKA acquisition, CACI made rapid progress in reducing leverage, ending Q4 FY26 at 3.7x pro forma leverage, a full turn reduction in one quarter. The company now expects to reach leverage in the low 3s by June 2027, a quarter sooner than originally communicated. This deleveraging is consistent with CACI's track record after major acquisitions, reflecting strong profitability and working capital management.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.