Description
CACI International Raised Guidance To 10.1% Growth But 4.2x Leverage Demands Attention!
CACI International’s third quarter fiscal 2026 results reflected continued growth and operational strength amid evolving market dynamics and strategic acquisitions. The company reported revenue of $2.4 billion, marking an 8.5% year-over-year increase driven by 6.8% organic growth, supported in part by the acquisition of ARKA. The adjusted EBITDA margin expanded by 60 basis points to 12.3%, despite incurring $17 million in transaction costs related to ARKA. Free cash flow reached $221 million, highlighting effective cash management and profitability, although this was reduced by around $20 million due to acquisition-related fees. Adjusted diluted earnings per share grew 17% year-over-year to $7.27, with gains balancing higher interest expenses and tax provisions. CACI’s backlog stood at $33.4 billion, up 6% year-over-year, with a funded backlog increase of 19%, reflecting healthy organic growth when excluding ARKA’s contribution. The company maintained a long weighted average backlog duration of over six years, offering multi-year revenue visibility.
