fiscal 2027 first quarter
Filed Oct 21, 2026Fiscal 2027 first-quarter revenues of $2.5 billion, up 8.2% YoY; adjusted diluted EPS of $7.66, up 11.8% YoY; fiscal year 2027 revenue and earnings guidance raised.
Revenue, operating income, adjusted net income, adjusted diluted EPS, EBITDA, EBITDA margin, funded backlog, and technology revenue increased year over year, while the company raised fiscal year 2027 revenue, adjusted net income, and adjusted diluted EPS guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended 9/30/2026GAAP | $2.47B | – | 8.2% |
| Revenue organic growth, three months ended 9/30/2026other | 2.1% | – | – |
| Direct costs, three months ended 9/30/2026GAAP | $1.60B | – | 3.3% |
| Indirect costs and selling expenses, three months ended 9/30/2026GAAP | $550.1M | – | 16.1% |
| Depreciation and amortization, three months ended 9/30/2026GAAP | $79.27M | – | 46.0% |
| Total costs of revenues, three months ended 9/30/2026GAAP | $2.23B | – | 7.3% |
| Income from operations, three months ended 9/30/2026GAAP | $247.5M | – | 16.6% |
| Interest expense and other, net, three months ended 9/30/2026GAAP | $73.24M | – | 58.6% |
| Income before income taxes, three months ended 9/30/2026GAAP | $174.3M | – | 4.9% |
| Income taxes, three months ended 9/30/2026GAAP | $43.92M | – | 6.4% |
| Net income, three months ended 9/30/2026GAAP | $130.4M | – | 4.5% |
| Basic earnings per share, three months ended 9/30/2026GAAP | $5.90 | – | 4.1% |
| Diluted earnings per share, three months ended 9/30/2026GAAP | $5.84 | – | 3.7% |
| Weighted-average basic shares outstanding, three months ended 9/30/2026GAAP | 22,100 | – | 0.5% |
| Weighted-average diluted shares outstanding, three months ended 9/30/2026GAAP | 22,316 | – | 0.7% |
| Adjusted net income, three months ended 9/30/2026non-GAAP | $171.0M | – | 12.7% |
| Adjusted diluted EPS, three months ended 9/30/2026non-GAAP | $7.66 | – | 11.8% |
| EBITDA, three months ended 9/30/2026non-GAAP | $328.8M | – | 22.4% |
| EBITDA margin, three months ended 9/30/2026non-GAAP | 13.3% | – | – |
| Net cash provided by operating activities, three months ended 9/30/2026GAAP | $161.3M | – | – |
| Net cash provided by operating activities excluding MARPA, three months ended 9/30/2026non-GAAP | $144.8M | – | (9.5)% |
| Capital expenditures, three months ended 9/30/2026GAAP | −$11.36M | – | – |
| Free cash flow, three months ended 9/30/2026non-GAAP | $133.5M | – | (6.6)% |
| Days sales outstanding, three months ended 9/30/2026other | 59 | – | – |
| Contract awards, three months ended 9/30/2026other | $4.83B | – | (3.4)% |
| Book-to-bill, first quarter of fiscal year 2027other | 2.0x | – | – |
| Total backlog as of September 30, 2026other | $34B | – | 0.3% |
| Funded backlog as of September 30, 2026other | $6.2B | – | 14.8% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Department of War54.8% of revenues. | $1.35B | – | 14.8% |
| Intelligence Community24.7% of revenues. | $612.0M | – | 2.6% |
| Federal civilian agencies16.0% of revenues. | $396.4M | – | (3.7)% |
| Commercial and other4.5% of revenues. | $112.0M | – | 12.1% |
| Cost-plus-fee52.8% of revenues by contract type. | $1.31B | – | (5.5)% |
| Fixed-price33.2% of revenues by contract type. | $821.8M | – | 34.4% |
| Time-and-materials14.0% of revenues by contract type. | $346.5M | – | 18.0% |
| Prime Contractor89.3% of revenues by prime or subcontractor. | $2.21B | – | 6.4% |
| Subcontractor10.7% of revenues by prime or subcontractor. | $265.4M | – | 25.9% |
| Technology58.6% of revenues by technology or expertise. | $1.45B | – | 11.4% |
| Expertise41.4% of revenues by technology or expertise. | $1.03B | – | 3.9% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal Year 2027 outlook
- Revenue$10,700 - $10,900
- NoteAdjusted net income, a non-GAAP measure: $740 - $760
- NoteAdjusted diluted earnings per share, a non-GAAP measure: $33.18 - $34.08
- NoteDiluted weighted average shares: 22.3
- NoteFree cash flow, a non-GAAP measure: At least $900
- NoteNet income: $579 --- $599
- NoteDiluted EPS: $25.96 --- $26.86
- NoteNet cash provided by operating activities: $1,015
- NoteCash provided by MARPA: —
- NoteNet cash provided by operating activities excluding MARPA: $1,015
- NoteCapital expenditures: $(115)
Capital returns
- Repurchases of common stock: $(4,406)
- Proceeds from employee stock purchase plans: $4,031
- Payment of taxes for equity transactions: $(71)
What drove it
- Revenue increased 8.2% year-over-year, including 2.1% organic growth.
- The increase in income from operations was driven by higher revenues and gross profit.
- Growth in diluted earnings per share and adjusted diluted earnings per share was driven by higher income from operations, partially offset by higher interest expense and a higher tax provision.
- Technology revenue increased 11.4%, while expertise revenue increased 3.9%.
- Fixed-price revenue increased 34.4% and time-and-materials revenue increased 18.0%, while cost-plus-fee revenue decreased 5.5%.
- Department of War revenue increased 14.8%; federal civilian agencies revenue decreased 3.7%.
- Approximately 61% of $4.8 billion of contract awards was for new business to CACI.
Concerns
- Interest expense and other, net increased 58.6% to $73,240.
- Net cash provided by operating activities excluding MARPA decreased 9.5% to $144,848, driven primarily by higher working capital.
- Free cash flow decreased 6.6% to $133,489.
- Contract awards decreased 3.4% to $4,828,329.
- Total backlog increased 0.3% to $34.0 billion.
- Federal civilian agencies revenue decreased 3.7% and cost-plus-fee revenue decreased 5.5%.
What to watch
- Execution against fiscal year 2027 revenue guidance of $10,700 - $10,900.
- Execution against fiscal year 2027 adjusted net income guidance of $740 - $760 and adjusted diluted EPS guidance of $33.18 - $34.08.
- Free cash flow delivery of at least $900, including net cash provided by operating activities excluding MARPA of $1,015 and capital expenditures of $(115).
- Funded backlog growth following the reported $6.2 billion balance and 14.8% increase.
- Cash conversion and working-capital trends after the decrease in net cash provided by operating activities excluding MARPA.
Balance sheet and cash flow
- Cash and cash equivalents as of 9/30/2026: $279,389; as of 6/30/2026: $191,756
- Accounts receivable, net as of 9/30/2026: $1,722,873; as of 6/30/2026: $1,705,087
- Current portion of long-term debt as of 9/30/2026: $46,750; as of 6/30/2026: $46,750
- Long-term debt, net of current portion as of 9/30/2026: $4,789,313; as of 6/30/2026: $4,854,759
- Total assets as of 9/30/2026: $11,947,535; as of 6/30/2026: $11,819,644
- Total liabilities as of 9/30/2026: $7,320,844; as of 6/30/2026: $7,356,947
- Total shareholders’ equity as of 9/30/2026: $4,626,691; as of 6/30/2026: $4,462,697
- Proceeds from borrowings: $1,211,500; prior year: $541,000
- Principal payments on borrowings: $(1,278,188); prior year: $(682,688)
- Net cash used in financing activities: $(67,134); prior year: $(142,238)
- Net change in cash and cash equivalents: $87,633; prior year: $26,839
Analysis
CACI reported fiscal 2027 first-quarter revenue of $2,474,597, up 8.2%, including 2.1% organic growth. Income from operations increased 16.6% to $247,528, outpacing revenue growth. Net income increased 4.5% to $130,367, while adjusted net income increased 12.7% to $170,957 and adjusted diluted EPS increased 11.8% to $7.66. The release attributes EPS growth to higher income from operations, partly offset by higher interest expense and a higher tax provision.
Mix favored technology and fixed-price work. Technology revenue increased 11.4% to $1,449,336, compared with 3.9% growth in expertise revenue to $1,025,261. Fixed-price revenue rose 34.4% to $821,826 and time-and-materials revenue rose 18.0% to $346,464, while cost-plus-fee revenue declined 5.5% to $1,306,307. Department of War revenue increased 14.8% to $1,354,257, whereas federal civilian agencies revenue declined 3.7% to $396,398.
Profit conversion strengthened on the reported measures. EBITDA increased 22.4% to $328,828 and EBITDA margin rose to 13.3% from 11.7%. Depreciation and amortization increased 46.0% to $79,267, while interest expense and other, net increased 58.6% to $73,240. Cash conversion was softer: net cash provided by operating activities excluding MARPA declined 9.5% to $144,848 and free cash flow declined 6.6% to $133,489, with the release citing higher working capital.
Demand indicators were constructive despite a year-over-year decline in awards. Contract awards were $4,828,329, down 3.4%, but book-to-bill was 2.0x and approximately 61% of awards were for new business to CACI. Total backlog was $34.0 billion, up 0.3%, while funded backlog increased 14.8% to $6.2 billion. Management raised fiscal year 2027 guidance for revenue to $10,700 - $10,900, adjusted net income to $740 - $760, and adjusted diluted EPS to $33.18 - $34.08, while maintaining free cash flow guidance at at least $900.
The balance sheet showed cash and cash equivalents of $279,389 as of 9/30/2026 and long-term debt, net of current portion, of $4,789,313. During the quarter, the company reported $1,211,500 of proceeds from borrowings and $(1,278,188) of principal payments on borrowings. Repurchases of common stock were $(4,406). The central figures to monitor are delivery against the increased revenue and earnings outlook, free-cash-flow execution, funded backlog growth, and the effect of higher interest expense and working capital on earnings and cash generation.
Management, verbatim
Our first quarter results represent a strong start to fiscal year 2027, highlighted by revenue and EBITDA growth, strong EBITDA margin, and healthy free cash flow. We also delivered a 2.0x book-to-bill and another quarter of double-digit funded backlog growth. Our mission proximity, software-defined approach, ability to invest ahead of customer need, and superior execution continue to differentiate CACI and drive our performance.
John Mengucci, CACI President and Chief Executive Officer
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. We remain confident in our ability to drive long-term growth in free cash flow per share and deliver exceptional value for our customers and shareholders.
John Mengucci, CACI President and Chief Executive Officer
Not in the filing
stated, not guessed- GAAP gross margin was not reported.
- Non-GAAP gross margin was not reported.
- Operating expense guidance was not reported.
- Tax rate guidance was not reported.
- Prior-quarter comparisons for reported first-quarter metrics were not reported.
- A previous earnings release outlook was not provided for comparison with actual results.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.