CACI International Inc (NYSE:CACI) Reports Strong Fiscal 2025 Earnings but Faces Growth Concerns for 2026

CACI International Inc (NYSE:CACI) reported its fiscal 2025 fourth-quarter and full-year results, delivering revenue and earnings that largely exceeded analyst expectations. However, the market reaction has been mixed, with shares declining in recent weeks amid broader concerns about growth deceleration in fiscal 2026.

Earnings Performance vs. Estimates

• Q4 Revenue: $2.30 billion, up 13% year-over-year but slightly below the consensus estimate of $2.33 billion.
• Q4 Adjusted EPS: $8.40, significantly surpassing the $6.72 analyst forecast, marking a 27.1% increase from the prior year.
• Full-Year Revenue: $8.63 billion, a 12.6% increase, driven by strong organic growth (7.2%).
• Full-Year Adjusted EPS: $26.48, up 25.8% year-over-year.

Despite the earnings beat, CACI’s stock has underperformed in recent weeks, declining 2.1% over the past month. This could be attributed to Jefferies' recent downgrade, citing concerns over slowing growth projections for fiscal 2026.

Fiscal 2026 Guidance vs. Analyst Expectations

CACI provided its fiscal 2026 outlook, projecting:

• Revenue: $9.2 billion to $9.4 billion (vs. analyst consensus of $9.43 billion).
• Adjusted EPS: $27.13 to $28.03 (vs. consensus of $27.90).
• Free Cash Flow: At least $710 million.

While the midpoint of CACI’s revenue guidance aligns closely with expectations, the lower end suggests potential caution. The company’s adjusted EPS forecast is in line with estimates, but investors may be weighing the deceleration in growth compared to fiscal 2025.

Key Highlights from the Earnings Release

• Strong Contract Wins: Q4 awards totaled $2.6 billion, including a $855 million U.S. Army INSCOM contract and a $616 million intelligence community deal.
• Backlog Stability: Total backlog remains robust at $31.4 billion, with funded backlog up 11% to $4.2 billion.
• Capital Deployment: The company repurchased $150 million in shares and continues to pursue strategic acquisitions.
• Fortune 500 Recognition: CACI was named to the Fortune 500 list for the first time, reflecting its growing scale in the defense and IT services sector.

Market Sentiment & Analyst Concerns

Recent headlines highlight investor unease, particularly around:

• Growth Deceleration: Fiscal 2026 revenue growth is expected to slow to 4-6%, down from 9% organic growth in fiscal 2025.
• Contract Risks: Jefferies cited "moderate contract risk" tied to CACI’s Enterprise IT as a Service (EITaaS) offerings.

Conclusion

CACI’s Q4 earnings demonstrated resilience, with strong profitability and contract momentum. However, the market’s muted reaction suggests caution around future growth prospects, particularly in light of analyst downgrades and a more conservative fiscal 2026 outlook.

For more detailed earnings estimates and historical performance, visit CACI’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.