Defense, intelligence, and IT solutions provider CACI International (NYSE: CACI) met Wall Street’s revenue expectations in Q1 CY2026, with sales up 8.5% year on year to $2.35 billion. The company’s outlook for the full year was close to analysts’ estimates with revenue guided to $9.55 billion at the midpoint. Its non-GAAP profit of $7.27 per share was 5% above analysts’ consensus estimates.

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“CACI delivered another outstanding quarter, reflecting the strength of our strategy and our continued ability to win in the market with differentiated capabilities and exceptional execution. Closing the ARKA Group acquisition represents another significant strategic step in advancing our ability to address our customers’ most critical missions in high‑growth, high-demand markets,” said John Mengucci, CACI President and Chief Executive Officer.

Company Overview

Founded to commercialize SIMSCRIPT, CACI International (NYSE: CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, CACI’s 8.9% annualized revenue growth over the last five years was decent. Its growth was slightly above the average industrials company and shows its offerings resonate with customers.

Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. CACI’s annualized revenue growth of 11.8% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

This quarter, CACI grew its revenue by 8.5% year on year, and its $2.35 billion of revenue was in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 13.9% over the next 12 months, an improvement versus the last two years. This projection is healthy and implies its newer products and services will fuel better top-line performance.

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Operating Margin

Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.

CACI has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 8.6%, higher than the broader industrials sector.

Looking at the trend in its profitability, CACI’s operating margin rose by 1.3 percentage points over the last five years, as its sales growth gave it operating leverage.

This quarter, CACI generated an operating margin profit margin of 9.7%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

CACI’s EPS grew at 12.5% compounded annual growth rate over the last five years, higher than its 8.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into CACI’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, CACI’s operating margin was flat this quarter but expanded by 1.3 percentage points over the last five years. On top of that, its share count shrank by 11.9%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For CACI, its two-year annual EPS growth of 21.8% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.

In Q1, CACI reported adjusted EPS of $7.27, up from $6.23 in the same quarter last year. This print beat analysts’ estimates by 5%. Over the next 12 months, Wall Street expects CACI’s full-year EPS of $29.33 to grow 6.4%.

Key Takeaways from CACI’s Q1 Results

We enjoyed seeing CACI beat analysts’ adjusted operating income expectations this quarter. We were also glad its EBITDA outperformed Wall Street’s estimates. On the other hand, its full-year EPS guidance slightly missed and its revenue was in line with Wall Street’s estimates. Overall, this print was mixed but still had some key positives. The stock traded up 1.2% to $518.39 immediately after reporting.

So should you invest in CACI right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).