CACI Raises Fiscal 2026 Guidance After Q2 Revenue Grows 5.7% and EPS Jumps 14.5%
CACI reported Q2 revenues of $2.2201B, up 5.7% year-over-year, and adjusted EPS of $6.81, a 14.5% increase. The company raised its fiscal 2026 revenue guidance to $9.3-9.5B, announced a $2.6B ARKA Group acquisition and secured $1.4B in Q2 contract awards.
1. Truist Financial Lifts Price Target to $800
On January 22, 2026, Truist Financial analyst Tobey Sommer raised CACI’s 12-month price target to $800, implying a 22.3% upside from the company’s closing valuation prior to the call. Sommer cited CACI’s expanding presence in electronic warfare and Agile software development, as well as the recently announced ARKA Group acquisition, as key drivers of long-term revenue growth and margin enhancement.
2. Q2 Fiscal 2026 Results Exceed Prior Year Across Key Metrics
For the quarter ended December 31, 2025, CACI reported revenues of $2.22 billion, up 5.7% year-over-year, driven by 4.5% organic growth. Net income rose 12.7% to $123.9 million, while adjusted diluted EPS climbed 14.5% to $6.81 from $5.95 in Q2 2025. Free cash flow more than doubled to $138.2 million, and operating cash flow excluding MARPA contributions increased 102.9% to $154.2 million, underscoring efficient working capital management.
3. Robust Backlog and Upgraded Full-Year Guidance Support Growth Outlook
CACI ended Q2 with a total backlog of $32.8 billion, a 3.1% increase year-over-year, including $4.4 billion of funded backlog, up 7.3%. New contract awards totaled $1.4 billion, with 70% attributable to first-time business. The company raised its fiscal 2026 guidance, now forecasting revenues of $9.3–9.5 billion (versus $9.2–9.4 billion prior), adjusted net income of $630–645 million, and adjusted diluted EPS of $28.25–28.92, reflecting confidence in backlog conversion and margin expansion.