The quarter beat the market’s earnings bar by a wide margin. Reported diluted EPS was $7.05, but the more relevant adjusted EPS was $8.91, versus a published consensus near $7.26 — roughly a 23% beat. Revenue reached $2.71 billion, up 17.6%, although no reliable public revenue consensus was available for comparison.
| Metric | Q4 FY26 | Q4 FY25 / expectation | Read |
|---|---|---|---|
| Revenue | $2,709.1 million | $2,304.1 million | +17.6% year over year (Financial Highlights) |
| Adjusted diluted EPS | $8.91 | $8.40 / consensus near $7.26 | +6.1% year over year; well above consensus (Adjusted EPS reconciliation) |
| EBITDA margin | 13.0% | 11.5% | +150 basis points (EBITDA reconciliation) |
| Free cash flow | $232.9 million | $139.1 million | +67.4% (Cash Flow reconciliation) |
| Funded backlog | $5.4 billion | $4.2 billion | +28.6% (Backlog discussion) |
Underlying operating performance was better than the headline GAAP EPS suggests. Net income fell 0.7% and GAAP EPS declined 1.3%, but that was largely the mechanical result of substantially higher intangible amortization, interest expense, and taxes following the ARKA acquisition. Adjusted EPS still rose 6.1%, while EBITDA grew 33.5% and the margin expanded to 13.0% (Income Statement; Adjusted EPS reconciliation; EBITDA reconciliation).
The new FY27 outlook is above the standing earnings expectation. Guidance calls for $32.96–$33.86 of adjusted EPS, compared with a published consensus near $31.28, implying the midpoint is about 7% above expectations. The revenue range of $10.65–$10.85 billion implies roughly 12% growth from FY26, while free cash flow of at least $900 million would be more than 22% above FY26’s $735.4 million (FY27 Guidance).
Cash generation and demand visibility are the strongest parts of the release. FY26 free cash flow rose 66.2% to $735.4 million, DSO improved to 55 days, and funded backlog grew much faster than revenue. The backlog mix is especially important: technology revenue grew 16.9% for the year versus only 3.5% for expertise, supporting the company’s higher-margin technology transition (Cash Flow reconciliation; Financial Highlights; Revenue by Offering).
The main qualification is higher leverage, not weaker demand. CACI spent $2.64 billion on acquisitions and ended the year with $4.90 billion of long-term debt, up from $2.85 billion a year earlier. Interest expense consequently rose 35.6% for the year and 57.7% in the quarter, partially offsetting stronger operating income (Cash Flow statement; Balance Sheet; Income Statement). Netting the whole filing, the earnings beat, margin expansion, cash-flow acceleration, and above-consensus FY27 outlook outweigh the acquisition-related financing drag.
Read the original 8-K on SEC EDGAR ↗