CACI International (CACI) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue grew 8.5% year-over-year to $2.4 billion, with 6.8% organic growth and net income of $130.4 million, up 16.6%.

• Adjusted diluted EPS increased 17% year-over-year to $7.27, with strong profitability and free cash flow of $221 million.

• Completed the $2.6 billion ARKA acquisition, expanding technology capabilities in space, EO/IR, and AI, and integrating under ARKA's former CEO.

• Raised FY2026 revenue and EBITDA margin guidance, reflecting ARKA's contribution and strong organic margin performance.

• Maintained robust free cash flow and strong backlog, positioning for continued growth.

Financial highlights

• Q3 revenue reached $2.4 billion, up 8.5% year-over-year, with 6.8% organic growth.

• EBITDA margin improved to 12.3%, up 60 basis points year-over-year, despite $17 million in ARKA transaction costs.

• Adjusted diluted EPS was $7.27, up 17% year-over-year; net income was $130.4 million, up 16.6%.

• Free cash flow for the quarter was $221 million, with DSO at 55 days.

• Book-to-bill was 0.9x for the quarter and 1.2x on a trailing 12-month basis; total backlog reached $33.4 billion, up 6% year-over-year.

Outlook and guidance

• FY2026 revenue guidance increased to $9.5–$9.6 billion, representing 10.1%–11.3% growth, including $150 million from ARKA.

• EBITDA margin guidance raised to 11.8%–11.9%.

• Adjusted net income guidance set at $615–$630 million; adjusted EPS guidance at $27.70–$28.38, up 5%–7%.

• Free cash flow guidance reaffirmed at at least $725 million, representing 65% growth in free cash flow per share over FY2025.

• Expect leverage to return to low threes within six quarters post-ARKA acquisition.