CACI International, Inc. (CACI) Business Profile

What it does

CACI International provides technology and specialist personnel primarily to U.S. government agencies involved in defense, intelligence and civilian missions. Founded in 1962 and headquartered in Arlington County, the company is led by Chief Executive Officer John S. Mengucci. CACI is a holding company, with operations conducted through subsidiaries primarily in the United States and Europe.

Its technology work ranges from modernizing government software and networks to developing systems for cyber operations, space sensing and the use of the electromagnetic spectrum. That spectrum work includes technologies that help customers detect signals, conduct electronic warfare and communicate securely. CACI also develops data platforms and applications that use artificial intelligence, and supplies photonics and space-based sensors.

The company calls its other main offering Expertise: people with technical or functional skills who support customer operations. Their work includes software development, engineering, intelligence analysis, naval architecture, logistics and special operations support. CACI can provide people and technology together on a program or deliver particular capabilities to meet a customer’s needs.

Internationally, CACI offers IT services and proprietary data and software products to commercial and government customers. The company also invests in research and development ahead of customer demand and acquires businesses to add capabilities and customer access. As of June 30, 2026, it employed approximately 27,000 full- and part-time people.

How it makes money

Revenue was $9.6 billion for fiscal 2026 and $2.7 billion for the fourth quarter of fiscal 2026.

CACI earns revenue by delivering technology and services under customer contracts. It reports two operating segments, Domestic Operations and International Operations, and also groups its offerings into Technology and Expertise. In fiscal 2026, Technology generated $5.6 billion of revenue, while Expertise generated $4.0 billion. Domestic Operations generated $9.3 billion and International Operations generated $307.5 million.

Much of the company’s business is won through formal bids. Customers typically consider past performance, the response to their requirements, price and other factors. CACI can bid directly for government work or support another bidder. Contracts may contain multiple task orders, and the company performs work on existing programs as well as seeking new awards and renewals.

The contract terms determine how CACI is paid. Cost-plus-fee contracts reimburse allowable direct and allocated indirect costs and add a negotiated fee, which may depend on performance. Fixed-price contracts specify the price for the work; CACI bears the risk if its costs exceed its estimate. Time-and-materials contracts pay fixed hourly rates for defined labor categories and reimburse billable materials and other direct costs. In fiscal 2026, 56.0% of revenue came from cost-plus-fee contracts and 13.6% from time-and-materials contracts.

Revenue is generally recognized over the period in which services are performed. Existing contracts can include future options, but options and unfunded work do not assure future revenue. As of June 30, 2026, total backlog was $32.0 billion, including $5.4 billion of funded backlog. CACI also receives income under agreements involving third-party software, data and technology.

Customers and how it sells

CACI’s customers are primarily U.S. government agencies and departments, alongside foreign governments and commercial enterprises. Its government work supports defense, intelligence and federal civilian missions. Federal civilian customers include the Departments of Homeland Security, Justice, Agriculture, Health and Human Services, and State.

In fiscal 2026, Domestic Operations accounted for 96.8% of revenue. CACI says 78% of its revenue comes from Department of War and intelligence community customers. Its top ten revenue-producing contracts accounted for 22.5% of revenue in fiscal 2026; many of those contracts consist of multiple task orders.

Domestic work spans cyber, digital systems, enterprise IT, mission and engineering support, space, communications and intelligence, and electromagnetic spectrum capabilities. CACI designs, implements, protects and manages enterprise IT for approximately 50 federal agencies. It reaches customers through direct bids and can also support other bidders pursuing government contracts.

International Operations accounted for 3.21% of fiscal 2026 revenue. They operate primarily through European subsidiaries, CACI Limited and CACI BV, and are headquartered in London. The business serves government and commercial customers throughout the U.K., continental Europe and elsewhere. Its international commercial customers are primarily large enterprises in the U.K.; offerings include IT consultancy, proprietary data and software. Commercial contract terms are frequently negotiated around matters such as delivery, specifications and payment.

Suppliers and costs

CACI’s direct costs include employee labor, subcontractors, materials and other costs incurred on customer work. Indirect costs and selling expenses include fringe benefits and overhead associated with its workforce, as well as acquisition-related expenses. Direct costs were 66.8% of revenue in fiscal 2026, while indirect costs and selling expenses were 21.0%.

The company competes for skilled employees and says its ability to recruit, train and retain people is important to its operations. Some government contracts require staff with security clearances, specified education and work experience. Clearances can be difficult and time-consuming to obtain.

CACI uses software, data and technology supplied by third parties and enters agreements to distribute and receive income from them. It works with SAP and AWS on a transportation management modernization program and with Oracle on a shared human-resources service for the Office of Personnel Management. CACI says some government customers also buy enterprise software licenses directly from original equipment manufacturers, while CACI partners on implementation.

The company develops hardware as well as software, including space sensors, electronic warfare technology and photonics. It invests in research and development ahead of customer needs. Its contract mix affects cost exposure: under fixed-price work, CACI bears the risk of overruns; under time-and-materials work, labor and allocated indirect costs can exceed the fixed hourly rate.

Competitive position

CACI competes for government and commercial contracts through proposals submitted in response to customer requests. Buyers generally receive proposals from other firms and assess factors including price, past performance and responsiveness to their requirements. Some competitors are larger and have greater financial resources. Nontraditional companies have established positions in areas including cloud computing, cyber, satellite operations and business systems; government agencies also perform some similar services themselves.

No competitor is named in the available descriptions of CACI’s competitive markets. CACI says no single competitor dominates its technology fields and that it has a relatively small share of its addressable market.

The company uses its knowledge of agency operations and its record on prior programs when seeking work. It also invests in research and development, maintains proprietary rights and trade secrets, and provides personnel with specialized qualifications. Many federal contracts require security clearances, which can take time to obtain.

Our reading: Agency knowledge and past performance can help CACI compete for repeat work, but customers still solicit rival proposals and consider price. Our reading: Cleared personnel and specialized technology provide some barriers to entry, although competition for those people is intense and CACI says its services are generally not substantially dependent on intellectual-property protection. Our reading: Contract relationships are not permanent protection because government customers can terminate contracts and awards are subject to competition.

Growth opportunities

CACI seeks to grow through new and existing contracts and strategic acquisitions. Revenue growth in fiscal 2026 included 7.2% organic growth, including new contract awards and growth on existing programs. The company completed two acquisitions during fiscal 2026, adding capabilities in space technology and specialist data and cloud migration services.

The company says its addressable market exceeds $300 billion. It identifies cyber, space, electromagnetic spectrum operations, counter-missile and counter-drone defense, artificial intelligence, and network and application modernization among the trends influencing government spending in its markets. It invests ahead of customer demand to develop technology for national security work.

CACI says its Spectral electronic warfare program reached Milestone C and is moving into low-rate initial production, with deployment to begin in the second half of fiscal 27. It also says its Sky Valor counter-drone system was selected for southern-border homeland defense and that it received a separate $500 million Domestic Shield award. In space, the company says it won a classified counter-space program combining software with mission hardware.

For fiscal 27, CACI expects revenue between $10.65 and $10.85 billion, including approximately $500 million of acquired revenue, and free cash flow of at least $900 million. It expects approximately 83% of revenue to come from existing programs, 9% from re-competes and 8% from new business. CACI cautions that growing use of nontraditional acquisition methods may change how metrics such as book-to-bill, contract duration and pipeline should be interpreted.

Structural risks

• Government funding and contract rights. CACI generates substantially all of its revenue from federal government contracts. Government customers can terminate contracts for convenience or cancel multiyear work if funding becomes unavailable. Continuing resolutions can delay new programs, awards and customer decisions.

• Bidding and execution. Competitive bids require spending and management time without an assured award. CACI may be unable to estimate the resources and costs needed to perform a contract, and work bid before its design is complete can encounter technical difficulties and cost overruns. Fixed-price contracts leave the company bearing overrun risk.

• Workforce and security. CACI competes for skilled personnel, including people with required security clearances. It must comply with government acquisition and security rules, including requirements to prevent unauthorized access to classified and other protected information. Its operations also rely on its own and third parties’ information systems.

• Acquisitions and debt. Acquisitions may be difficult to identify or complete on favorable terms, and due diligence may fail to uncover liabilities. Borrowing to finance acquisitions contributed to higher interest expense in fiscal 2026. Debt instruments also restrict certain actions, including some acquisitions, investments and distributions.

• Backlog is not guaranteed revenue. Backlog includes unfunded contract value and unexercised options. It can change through modifications, government deobligations and early terminations, and not all potential contract value will necessarily become revenue.

Bottom line

Our reading

CACI combines government technology development with specialist personnel working on customer missions. Its agency knowledge, cleared workforce and existing programs support its ability to compete, but awards remain contested and government customers retain termination rights (item1; item7). Growth in technology and acquisitions adds capabilities, while funding decisions, contract execution and debt remain important exposures; backlog is not a guarantee of future revenue (item1a; item7).