CACI Reports Strong Q2 Revenue Amid Market Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy CACI?
Source: Businesswire
CACI International's stock fell 5.06% as it crossed below the 5-day SMA, reflecting a challenging market environment despite positive earnings news.
The company reported $2.2 billion in revenue for Q2 2026, with a 5.7% year-over-year growth and an EBITDA margin of 11.8%. However, it missed revenue expectations by $60 million, indicating intensified market competition and project delays. Additionally, CACI announced the acquisition of ARKA, which is expected to enhance its competitive position in the national security market. Management also raised fiscal 2026 revenue guidance to between $9.3 billion and $9.5 billion, reflecting confidence in future opportunities.
Despite the stock's decline, CACI's strong financial performance and upward guidance revision suggest a solid foundation for future growth, although market conditions remain challenging.
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Analyst Views on CACI
Wall Street analysts forecast CACI stock price to rise
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 564.530
Low
675.00
Averages
737.25
High
800.00
Current: 564.530
Low
675.00
Averages
737.25
High
800.00
About CACI
CACI International Inc (CACI) is a holding company, which operates through its subsidiaries located in the United States and Europe. It is a provider of expertise and differentiated technology to customers in support of national security in the intelligence, defense, and federal civilian sectors. Its segments include Domestic Operations and International Operations. The Domestic Operations segment provides expertise and technology to U.S. federal government agencies. The International Operations segment provides expertise and technology to international government and commercial customers. It provides a diverse mix of IT services and proprietary data and software products, serving commercial and government customers throughout the United Kingdom, continental Europe and around the world. Its software offerings consist of signals intelligence (SIGINT), electronic warfare (EW), and intelligence, surveillance, and reconnaissance (ISR), across multiple domains, platforms, and customer sets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Acquisition Strategy Advancement: CACI announced the acquisition of ARKA as the latest step in its technology-driven portfolio evolution, expected to further strengthen its competitive position in the national security market and drive future revenue growth.
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- Employees Working Without Pay: Although most DHS employees are deemed essential, they will be forced to work without pay during the shutdown, which could strain frontline enforcement personnel and impact their morale and efficiency.
- Negotiation Stalemate: Significant disagreements persist between Democrats and the White House over immigration enforcement terms, with Democrats pushing for new restrictions on agents, including body cameras and judicial warrants for arrests, while the White House rejects changes that could hinder its enforcement agenda, slowing negotiations.
- Impact of Congressional Recess: With Congress entering a week-long recess, if an agreement is not reached during this period, the DHS shutdown will continue, and many lawmakers will be in Germany for the Munich Security Conference, further delaying potential solutions.
See More
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- Executive Engagement: CACI President and CEO John Mengucci, along with CFO Jeff MacLauchlan, will engage in a fireside chat on February 12, sharing insights on company strategy and industry trends, which is likely to bolster investor confidence.
- Live Webcast: The event will feature a live audio webcast available on CACI's investor relations website, with a replay accessible for 90 days post-event, ensuring that investors unable to attend in real-time can still access critical information.
- Company Overview: CACI, a national security firm with 26,000 employees, focuses on delivering differentiated technology and expertise to drive innovation and efficiency, further solidifying its position within the Fortune 500 rankings.
See More
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- Growth in Real Estate Investment Trust: Equity LifeStyle Properties reported strong business performance in January, leading analysts to upgrade the stock from neutral to buy, as its age-restricted mobile home portfolio benefits from demographic trends, with steady rent increases contributing to an 8% rise in stock price this year.
- Turning Point for Teledyne: Teledyne exceeded revenue expectations in January, with analysts noting that short-cycle recovery will drive margin expansion, while strong growth in the drone market is anticipated, resulting in a 27% increase in stock price since the beginning of the year.
- Boot Barn's Sustained Growth: Boot Barn continues to show consistent sales momentum, with analysts reiterating a buy rating, arguing that its 21x P/E ratio does not fully reflect its best-in-class growth profile, as third-quarter results aligned with prior expectations, indicating strong market performance.
See More
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- Consecutive Honor: CACI has been named a Fortune World's Most Admired Company for the ninth consecutive year, marking a testament to its outstanding performance and employee commitment, further solidifying its leadership in national security.
- Employee-Driven Success: The dedication of CACI's 26,000 employees is recognized as the cornerstone of the company's success, showcasing a strong corporate culture that enables it to stand out in a competitive environment.
- Innovation and Leadership: CACI received high accolades for its innovation, leadership, and financial soundness, particularly through its #MakingMoves initiative, which enhances employee skills and internal mobility to maintain competitiveness in a rapidly changing industry.
- Strategic Investment Returns: CACI's advancement to sixth place in its category reflects its strategic focus on flexible capital deployment and informed investments, which have expanded its technology portfolio and enhanced its competitive differentiation from peers.
See More
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- Task Order Value: CACI International has been awarded a five-year task order valued at up to $250 million to enhance spectrum dominance for the U.S. Army, demonstrating the company's strong competitive position in the defense sector.
- Integration Expertise: CACI will leverage its intrinsic knowledge to provide comprehensive integration and sustainment of technology, advancing the Army's multi-domain electronic warfare and spectrum dominance capabilities, thereby solidifying its market position.
- Financial Outlook Upgrade: With the expansion of its technology portfolio, CACI has raised its 2026 free cash flow guidance to $725 million and expects revenue growth of 8% to 10%, reflecting the company's robust growth potential.
- Strategic Implications: This task order not only enhances CACI's influence in defense technology but also lays a solid foundation for future business development, indicating the company's ongoing investment and commitment to national security.
See More
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- Increased Free Cash Flow: The company generated $138 million in free cash flow during the second quarter with a DSO of 57 days, showcasing ongoing improvements in cash management and operational efficiency that enhance financial flexibility and investment capacity.
- Acquisition Strategy Advancement: CACI announced the acquisition of ARKA as the latest step in its technology-driven portfolio evolution, expected to further strengthen its competitive position in the national security market and drive future revenue growth.
- Upward Guidance Revision: Management raised fiscal 2026 revenue guidance to between $9.3 billion and $9.5 billion, with EBITDA margin expectations between 11.7% and 11.8%, reflecting confidence in future market opportunities and a positive growth outlook.
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