CACI International Inc Reports 11.2% Revenue Growth to $2.29 Billion for Q3 2025

CACI International Inc reported a significant increase in financial performance for the three months ended September 30, 2025, with revenues reaching $2.29 billion, a rise of 11.2% from $2.06 billion in the same period last year. The company's net income also saw a modest increase, rising to $124.81 million from $120.18 million, translating to basic earnings per share of $5.67, up from $5.39. The growth in revenue was attributed to organic growth of 5.5%, driven by new contract awards and expansion of existing programs.

The company's costs of revenues increased to $2.08 billion, up from $1.88 billion, primarily due to higher direct costs associated with increased revenues. Direct costs as a percentage of revenue decreased slightly to 67.6% from 68.8%, indicating improved cost efficiency. Indirect costs and selling expenses also rose, reflecting a higher labor base and increased fringe benefit expenses, but remained stable as a percentage of revenue. The increase in depreciation and amortization expenses was largely due to the amortization of intangible assets acquired in fiscal 2025.

Strategically, CACI has made notable acquisitions, including the purchase of Identity E2E Limited for $58.9 million and Azure Summit Technology for approximately $1.31 billion. These acquisitions are expected to enhance CACI's capabilities in providing expertise and technology solutions to its government clients. The company reported a total backlog of $33.9 billion as of September 30, 2025, a 4.6% increase from the previous year, indicating a strong pipeline of future revenue opportunities.

Operationally, CACI's customer base remains robust, with significant contributions from the Department of Defense, which accounted for $1.18 billion in revenue, an 8.5% increase year-over-year. The Intelligence Community and federal civilian agencies also showed growth, with revenues increasing by 11.6% and 16.9%, respectively. The company continues to focus on maintaining a competitive edge in the market, particularly in areas such as cybersecurity and advanced technologies, which are expected to see increased government spending.

Looking ahead, CACI remains optimistic about its growth prospects, bolstered by a stable U.S. government budget environment and ongoing investments in national security. The company is well-positioned to capitalize on emerging opportunities in defense and intelligence sectors, despite potential challenges posed by government procurement processes and economic uncertainties. CACI's management believes that its strategic initiatives and strong financial position will support continued growth in the coming quarters.