CACI International Inc Reports 5.7% Revenue Growth to $2.22 Billion in Q2 FY 2026

CACI International Inc reported a notable increase in financial performance for the second quarter of fiscal year 2026, ending December 31, 2025. The company achieved revenues of $2.22 billion, a 5.7% increase from $2.10 billion in the same period last year. For the first half of the fiscal year, revenues rose to $4.51 billion, up 8.4% from $4.16 billion in the prior year. Net income for the quarter was $123.86 million, reflecting a 12.7% increase compared to $109.94 million in the previous year, while net income for the six-month period reached $248.67 million, an 8.1% increase from $230.12 million.

The company's operational costs also saw significant changes, with total costs of revenues increasing to $2.01 billion for the quarter, up from $1.92 billion a year earlier. Direct costs rose by 6.6% to $1.50 billion, while indirect costs and selling expenses decreased slightly by 0.4% to $464.59 million. The increase in costs was primarily driven by higher revenues, with direct costs as a percentage of revenue remaining relatively stable at 67.3% for the quarter. The company reported an increase in income from operations to $206.47 million, a 13.9% rise from $181.30 million in the prior year.

Strategically, CACI has been active in expanding its capabilities through acquisitions. Notably, the company announced its intention to acquire ARKA Group L.P. for approximately $2.6 billion, which is expected to enhance its technology offerings in the national security sector. This acquisition is anticipated to close in fiscal year 2026 and will be funded through cash on hand and debt financing. Additionally, CACI completed the acquisition of Azure Summit Technology in October 2024, which has contributed to the company's growth in the technology domain.

Operationally, CACI reported a total backlog of $32.8 billion as of December 31, 2025, a 3.1% increase from $31.8 billion a year prior. The funded backlog was $4.4 billion, indicating a solid pipeline of future revenue. The company also noted an increase in cash and cash equivalents to $422.98 million, up from $106.18 million at the end of the previous fiscal year. This increase in liquidity is attributed to improved cash flows from operations, which amounted to $325.26 million for the six months ended December 31, 2025, compared to $160.70 million in the same period last year.

Looking ahead, CACI remains optimistic about its growth prospects, citing a stable-to-higher U.S. government budget environment, particularly in defense and national security spending. The company plans to continue aligning its capabilities with government priorities and investing in advanced technologies to meet evolving customer needs. However, CACI acknowledges potential risks, including changes in government funding and procurement processes, which could impact future performance.