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CACI Stock Is Soaring On War Spending—Is It Time To Buy Or Bail?

CACI International is emerging as a key beneficiary of the growing global focus on electronic warfare and counter-drone defense. In its fiscal Q1 2026, CACI reported 11.2% revenue growth to $2.29 billion and a 189% year-over-year surge in free cash flow to $143 million. These gains come as the U.S. Department of Defense and international allies ramp up investments in software-defined systems capable of countering advanced drone and space-based threats. The company’s backlog grew 4.6% to a record $34 billion—equivalent to nearly four years of revenue—underpinning long-term visibility. Meanwhile, CACI’s $2.6 billion acquisition of ARKA Group, a provider of space sensors and agentic AI capabilities, strategically expands its national security technology stack but also raises net leverage to 4.3x EBITDA.