CACI raises fiscal 2027 revenue and adjusted EPS guidance after 8.2% sales growth

CACI International reported fiscal first-quarter revenue of $2.47 billion, up 8.2% from a year earlier, and raised the revenue and adjusted profit ranges it had given for fiscal 2027 — a raise of $50 million at each end of the sales range, delivered in a quarter when free cash flow fell 6.6% to $133.5 million and days sales outstanding stretched to 59 from 56.

CACI International, the Reston, Virginia-based national security contractor, reported fiscal first-quarter revenue of $2.47 billion for the three months ended September 30, 2026, an 8.2% increase that included 2.1% organic growth. Income from operations was $247.5 million against $212.3 million a year earlier, a 16.6% increase, and adjusted diluted earnings per share reached $7.66 against $6.85 a year earlier. The company also lifted its full-year revenue and adjusted earnings ranges, while reaffirming free cash flow guidance of at least $900 million.

A $50 million raise that leaves little room

Fiscal 2027 revenue guidance now runs from $10.7 billion to $10.9 billion, against $10.65 billion to $10.85 billion previously. Adjusted net income guidance moved to $740 million to $760 million from $735 million to $755 million, and adjusted diluted earnings per share guidance to $33.18 to $34.08 from $32.96 to $33.86. At the midpoint, revenue rises to $10.8 billion from $10.75 billion — $50 million, or 0.47%, more. The assumed diluted share count stayed at 22.3 million.

Those adjusted figures exclude intangible amortization expense and its tax effect. The release's own reconciliation implies GAAP net income of $579 million to $599 million and GAAP diluted EPS of $25.96 to $26.86 for the year, with $215 million of amortization added back. Chief Executive John Mengucci tied the raise to demand: “Based on our results, large and growing backlog, and healthy pipeline, we are raising our fiscal year 2027 revenue and earnings profit outlook while reaffirming guidance for other financial metrics.”

Operating profit outran net income as interest costs climbed

Operating income grew far faster than the bottom line. Net income rose 4.5% to $130.4 million and diluted EPS 3.7% to $5.84, held back below the operating line: interest expense reached $73.24 million, up 58.6% from $46.17 million, and the tax provision rose 6.4% to $43.92 million. Diluted shares averaged 22.32 million against 22.17 million a year earlier.

Adjusted net income rose 12.7% from a year earlier to $171.0 million, helped by adding back $54.31 million of intangible amortization, the item the company excludes because it swells with acquisitions. EBITDA rose 22.4% to $328.8 million and the EBITDA margin widened to 13.3% from 11.7%.

The revenue mix moved toward fixed-price work, which grew 34.4% from a year earlier. Cost-plus-fee revenue declined 5.5% from a year earlier. Department of War revenue rose 14.8% and intelligence community revenue 2.6% from a year earlier, while federal civilian agency revenue declined 3.7%.

Book-to-bill of 2.0x on a lower awards base

Contract awards totaled $4.8 billion, 3.4% below the prior-year quarter, with about 61% of the total for new business. Measured against quarterly revenue, that is a book-to-bill ratio of 2.0x. Funded backlog was $6.2 billion, up 14.8% from $5.4 billion, while total backlog of $34.0 billion compared with $33.9 billion a year earlier, a 0.3% increase.

The quarter's largest bookings were a U.S. Central Command award with a $1.5 billion ceiling, of which CACI recognized $1.2 billion of award and backlog value, and a five-year, $1.6 billion U.S. Army Special Operations Command task order, of which it recognized $1.2 billion.

Cash conversion slipped as receivables stretched

Free cash flow fell 6.6% to $133.5 million from $143.0 million, and net cash provided by operating activities excluding the company's receivables purchase agreement fell 9.5% to $144.8 million. Days sales outstanding rose to 59 from 56. CACI said the decrease in cash from operations was driven primarily by higher working capital; capital expenditures were $11.36 million against $17.01 million a year earlier.

That is the tension in the quarter. The raise is small relative to the year — 0.47% at the revenue midpoint — reported profit growth trails operating growth because of interest and tax, and the cash line moved the other way while the release described free cash flow as healthy. The reaffirmed target of at least $900 million of free cash flow for fiscal 2027 now rests on converting more cash in the second half than the first quarter produced.

The October 22 call and what the release leaves out

Management scheduled a call for 8:00 a.m. Eastern time on Thursday, October 22, 2026, with slide exhibits on the investor relations site, where questions about the cash trajectory and the interest burden are likely to land. The release carries no analyst estimates, so nothing here compares results with consensus; the benchmarks used are CACI's own prior-year quarter and its prior guidance.

It also gives no segment operating profit, no second-quarter outlook, and no detail on why days sales outstanding lengthened beyond the working-capital explanation. The next hard datapoint is the fiscal 2027 second-quarter release, which will show whether funded backlog growth of 14.8% converts into revenue and whether the interest line keeps climbing at its current pace.