CACI earnings increased in the first quarter of fiscal 2027, prompting the national security technology company to raise its full-year revenue and adjusted profit guidance. In results announced on October 21, 2026, CACI reported revenue of $2.47 billion and adjusted diluted earnings per share of $7.66 for the quarter ended September 30.
Key Takeaways
- Revenue increased 8.2%, while adjusted diluted earnings per share rose 11.8%.
- Contract awards totaled $4.8 billion, with approximately 61% representing new business.
- CACI raised its fiscal 2027 revenue and adjusted earnings outlook but maintained its free cash flow target.
Table of Contents
- CACI earnings grow faster than revenue
- Contract awards strengthen funded backlog
- Higher annual guidance leaves cash flow target unchanged
- Conclusion
CACI earnings grow faster than revenue
CACI’s fiscal 2027 first-quarter results showed net income rising 4.5% to $130.4 million. GAAP diluted earnings per share increased 3.7% to $5.84, while adjusted net income rose 12.7% to $171.0 million. The adjusted earnings measures exclude intangible amortization expense and the related tax impact.
Revenue growth included 2.1% organic growth. Operating income increased 16.6% to $247.5 million, supported by higher revenue and gross profit. CACI said higher interest expense and a higher tax provision partly offset the improvement in operating income.
Cash generation moved in the opposite direction. Free cash flow, a non-GAAP measure, declined 6.6% to $133.5 million. Operating cash flow excluding the company’s receivables purchase agreement fell 9.5% to $144.8 million, primarily because of higher working capital.
| Item | Details |
|---|---|
| Fiscal 2027 revenue guidance | $10.70–$10.90 billion, up from $10.65–$10.85 billion |
| Fiscal 2027 adjusted net income guidance | $740–$760 million, up from $735–$755 million |
| Fiscal 2027 adjusted diluted EPS guidance | $33.18–$34.08, up from $32.96–$33.86 |
| Fiscal 2027 free cash flow guidance | At least $900 million, unchanged |
Contract awards strengthen funded backlog
Quarterly contract awards reached $4.8 billion, producing a book-to-bill ratio of 2.0 times. That means awards were roughly twice quarterly revenue, although awards do not represent revenue already earned.
Funded backlog increased 14.8% from a year earlier to $6.2 billion, while total backlog rose just 0.3% to $34.0 billion. The contrast shows stronger growth in funded work than in the overall backlog.
Major awards included support for U.S. Central Command and a task order for the U.S. Army Special Operations Command. CACI recognized $1.2 billion in award and backlog value for each, based on current requirements, rather than their full contract ceilings.
Higher annual guidance leaves cash flow target unchanged
Management raised its fiscal 2027 revenue, adjusted net income and adjusted diluted EPS guidance. Chief Executive Officer John Mengucci cited the quarterly results, backlog and pipeline in explaining the increase.
The updated outlook leaves the annual free cash flow target unchanged despite the first-quarter decline. These figures remain management forecasts, not completed results.
Conclusion
CACI entered fiscal 2027 with higher earnings and stronger funded backlog, though quarterly cash flow declined. Management’s next scheduled discussion of the results and operating trends is its October 22, 2026, conference call at 8:00 a.m. Eastern time.
Read More News
Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
