The CACI upgrade by Jefferies on October 26, 2026, moved the national security technology company from Hold to Buy and raised its share-price target to $725. The rating change followed CACI International’s fiscal first-quarter results, which showed higher revenue and earnings and prompted management to increase its fiscal 2027 outlook.

Key Takeaways

  • Jefferies analyst Sheila Kahyaoglu highlighted CACI’s positioning in technology-focused national security work.
  • First-quarter revenue rose 8.2%, including 2.1% organic growth, while EBITDA margin reached 13.3%.
  • CACI raised its fiscal 2027 revenue and adjusted earnings guidance but left its free-cash-flow forecast unchanged.

CACI upgrade reflects confidence in technology strategy

Kahyaoglu’s positive assessment centered on CACI’s strategic positioning and growth opportunities in technology-focused national security projects. The company supplies capabilities including cyber solutions, command and control, and enterprise IT modernization to U.S. government customers.

The $725 target represents Jefferies’ assessment of the shares, not a company earnings forecast or an assured future trading price. The supplied upgrade details do not identify the previous price target.

CACI’s recent operating developments include the opening of a defense electronics manufacturing center in the Greater Rochester, New York, area. The additional 61,000-square-foot facility supports development, testing, assembly and delivery of electronic warfare technologies.

ItemDetails
Fiscal 2027 revenue guidance$10.700 billion–$10.900 billion, previously $10.650 billion–$10.850 billion.
Fiscal 2027 adjusted net income guidance$740 million–$760 million, previously $735 million–$755 million; non-GAAP.
Fiscal 2027 adjusted diluted EPS guidance$33.18–$34.08, previously $32.96–$33.86; non-GAAP.

Quarterly results show growth, with cash flow lower

CACI’s fiscal 2027 first-quarter results, released on October 21, cover the three months ended September 30, 2026. Revenue reached $2.475 billion, up 8.2% from a year earlier. Organic growth was 2.1%, distinguishing underlying expansion from the total reported revenue increase.

Net income rose 4.5% to $130.4 million, and diluted earnings per share increased 3.7% to $5.84. Adjusted diluted earnings per share, a non-GAAP measure, increased 11.8% to $7.66. EBITDA, also a non-GAAP measure, reached $328.8 million, with a margin of 13.3%.

Cash generation was weaker despite the earnings gains. Free cash flow declined 6.6% to $133.5 million. CACI attributed the decline in operating cash flow excluding its receivables purchase agreement primarily to higher working capital.

Contract awards totaled $4.8 billion, approximately 61% of which represented new business to CACI. Funded backlog reached $6.2 billion, up 14.8% year over year, while total backlog increased just 0.3% to $34.0 billion.

Management raises fiscal 2027 outlook

Chief Executive Officer John Mengucci cited quarterly performance, backlog and the company’s pipeline when announcing the higher annual outlook. The updated forecasts are management guidance rather than completed results.

CACI increased its revenue and adjusted earnings ranges while maintaining its forecast for at least $900 million in full-year free cash flow.

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