Research · Sep 3, 2026
[CACI] CACI International Thesis 2026: Defense IT Services Cycle Drives Federal Backlog Conversion
CACI International Inc. (NYSE: CACI) FY2025 revenue ~$8.45-8.85B (+11-16%) with adj. EPS ~$24.50-26.50 reflecting continued post-2024 ~$5.95-6.20B aggregate Domestic Operations revenue (~70%+ aggregate revenue mix; selected primary US Department of Defense + Intelligence Community + Federal Civilian) + selected continued post-2024 ~$2.50-2.65B aggregate International Operations revenue (~30% aggregate revenue mix; selected primary UK MoD + selected various NATO Allied + selected various commercial) under continued President + CEO John Mengucci since July 2019 (~6-year tenure as CACI CEO). One of the largest US defense IT services + federal contracting companies. Founded 1962 as California Analysis Center, Inc. by Herb Karr + Harry Markowitz (Nobel laureate; modern portfolio theory) in Santa Monica California (~63-year heritage); selected post-1968 NYSE listing; selected post-1970s-2024 ~$5B+ cumulative tuck-in M&A platform expansion; selected post-July 2019 John Mengucci CEO appointment. Headquartered in Reston Virginia; ~25,000+ employees globally (~85%+ cleared workforce; ~50%+ top secret + above clearance) with ~$8.45-8.85B revenue. Two primary business segments: Domestic Operations (~70%+ ~$5.95-6.20B), International Operations (~30% ~$2.50-2.65B). Geographic mix: US ~70%+ + UK + selected various NATO + selected various commercial international ~30%. Defense IT services cycle: ~$5.95-6.20B Domestic Operations revenue; ~$32-35B aggregate total contract value backlog; ~3.7-4.0x aggregate book-to-bill (~3-4 year backlog visibility); ~50%+ aggregate technology + software-driven revenue mix. Federal backlog conversion + tuck-in M&A: ~$32-35B aggregate backlog; ~$32B+ FY2025 ending backlog; selected post-2010-2024 ~$5B+ cumulative tuck-in M&A; selected post-2024 ~$300-400M aggregate Azure Summit + selected various tuck-in M&A. President + CEO John Mengucci since July 2019 (~6-year tenure); CFO Jeff MacLauchlan. Capital return: ~$0 dividend (no dividend track post-2002 NYSE listing); ~$300-450M aggregate FY2024-2025 buyback program (~$150-300M aggregate FY2025); aggregate capital return ~$150-300M FY2025; net leverage ratio ~2.0-2.5x; investment-grade Ba2/BB+ credit rating. FY2026 thesis: Defense IT services cycle + Federal backlog conversion + tuck-in M&A acceleration + ~$32-35B aggregate backlog + ~$200-400M aggregate annual capital return + Azure Summit integration. Risks: Leidos + General Dynamics + Booz Allen Hamilton + SAIC + Parsons competition, Federal budget cycle (Continuing Resolution + government shutdown), tuck-in M&A integration, book-to-bill normalization.