CACI’s Fiscal 2026 Encore: Backlog Robust, EPS Up, and a Clear Path to 2027 Revenue Growth

Key numbers at a glance

• Revenue for the year: $9.6 billion, up 10.9% year over year; fourth-quarter revenue: $2.709 billion.
• Net income (fiscal 2026): $535.8 million.
• EPS: Diluted EPS of $24.16 for the year; Adjusted diluted EPS of $29.83.
• Free cash flow: Management highlighted a 66% increase in free cash flow in fiscal 2026.
• EBITDA: $1,173.9 million; EBITDA margin: 12.3%.
• Backlog and awards: Annual contract awards of $10.2 billion; book-to-bill ratio of 1.1x.

Fourth-quarter narrative and the cash-flow cadence

In a prepared statement, John Mengucci, CACI President and Chief Executive Officer, framed the 2026 results as a testament to the company’s differentiated, technology-first approach to national security. He noted that the team grew free cash flow, delivered high-single-digit organic revenue growth, and expanded EBITDA margin to 12.3%, all while continuing to invest in talent and capabilities.

“CACI’s outstanding fiscal year 2026 performance demonstrates the power of our differentiated strategy, our relentless focus on execution, and underscores the technology-first national security company we have become,” Mengucci said. “We delivered this strong financial performance while continuing to invest across our business. These investments position us exceptionally well for continued success in fiscal 2027 and beyond.”

Guidance for fiscal 2027 and what it means for the sector

The company reaffirmed its expectation of strong cash flow in fiscal 2027, driven by continued revenue growth, margin expansion, and efficient working capital management. While the release stops short of a precise revenue forecast in the excerpt, the tone is clearly aimed at sustaining the momentum built in 2026, anchored by a healthy backlog and steady contract awards.

For sector peers, the message is nuanced but constructive: backlogs remain a reliable barometer of demand, and disciplined execution can translate into meaningful cash generation even in a competitive awards arena. A book-to-bill of 1.1x signals a pipeline that’s not just existing in rumor mill chatter but backed by real orders, which matters in a capital-intensive, project-driven space.

Takeaways for EPS, revenue forecasts, and earnings expectations

From an earnings-analysis perspective, the mix of GAAP and adjusted metrics continues to serve as a bridge between reported profitability and cash-generation capability. The reported EPS of $24.16 for the year, alongside an adjusted EPS of $29.83, provides a basis for analysts’ EPS consensus revisions for 2027. The absence of a dramatic earnings surprise in the release suggests investors should expect more of a steady, confidence-building trajectory than a dramatic swing in expectations.

The emphasis on free cash flow, a solid EBITDA figure, and a book-to-bill above 1x implies that the revenue forecast for 2027 could be supported by both top-line growth and improving margins. For competitors and investors alike, the state of the order book and the company’s capital discipline will be key to how aggressively CACI can pursue pricing and portfolio balance in a budget-constrained environment.

Implications for peers and the broader sector

CACIs’ results illustrate a sector where disciplined execution, a robust backlog, and cash-generation discipline can translate into a credible growth story, even when large government programs and competitive bidding cycles create noise. Peers will likely feel compelled to demonstrate similar trajectories in backlog stability and operating leverage, or face valuation questions if the market interprets 2026’s performance as an outlier.

In short, the 2026 numbers tell a story of a business that has aligned its growth engine with its capital allocator mindset. If the sector can keep a similar cadence—order intake that translates into revenue, margins that scale with volume, and cash flow that funds forward investments—the bar for earnings expectations may rise in a manner that feels less like fireworks and more like a well-timed relay.