CACI International (CACI) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 results with 5.7% year-over-year revenue growth to $2.22 billion, 4.5% organic growth, and 14% higher adjusted EPS, driven by technology portfolio expansion and disciplined execution.

• Net income rose 12.7% to $123.9 million, with diluted EPS up to $5.59 and adjusted EPS at $6.81, both up over 14% year-over-year.

• Technology now comprises nearly 60% of total revenue, with significant positions in electronic warfare, agile software, and space markets.

• Announced $2.6 billion acquisition of ARKA Group to strengthen technology-driven growth and space/intelligence capabilities.

• Raised FY26 guidance across all metrics, reflecting robust first-half performance, increased visibility, and business momentum.

Financial highlights

• Q2 revenue reached $2.22 billion, up 5.7% year-over-year, with 4.5% organic growth.

• EBITDA margin was 11.8%, a 70 basis point increase year-over-year; EBITDA grew 12.8% to $262.6 million.

• Adjusted diluted EPS was $6.81, up 14.5% from the prior year.

• Free cash flow for the quarter was $138 million, more than doubling year-over-year; DSO was 57 days.

• Book-to-bill was 0.65x for Q2, 1.4x for the first half, and 1.3x on a trailing 12-month basis; backlog reached $33 billion, up 3% year-over-year.

Outlook and guidance

• FY26 revenue guidance raised to $9.3–$9.5 billion, representing 7.8%–10.1% growth.

• EBITDA margin guidance increased to 11.7%–11.8%; adjusted net income expected between $630–$645 million; adjusted EPS $28.25–$28.92.

• Free cash flow guidance raised to at least $725 million, with a three-year target to exceed $1.6 billion.

• Guidance does not include any benefit from the ARKA acquisition.

• Tax rate expected at 23.0%–24.0%; capital expenditures projected at ~$85 million for FY26.