CACI’s second quarter results were well received by the market, reflecting strong momentum in its software-driven national security solutions and robust execution across strategic contracts. Management credited demand for its electromagnetic spectrum and counter-drone technologies as primary growth drivers, emphasizing successful fielding of the TLS Manpack system and expansion into vehicle-mounted variants. CEO John Mengucci highlighted that, “Our investments ahead of customer need led to the development of the TLS Manpack, which integrates signals intelligence and electronic warfare,” enabling CACI to deliver rapid solutions to evolving military requirements. Additionally, new wins in enterprise software modernization and steady execution on NASA’s NCAPS program contributed to performance.
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CACI (CACI) Q2 CY2025 Highlights:
- Revenue: $2.30 billion vs analyst estimates of $2.29 billion (13% year-on-year growth, 0.5% beat)
- Adjusted EPS: $8.40 vs analyst estimates of $6.58 (27.7% beat)
- Adjusted EBITDA: $264.5 million vs analyst estimates of $261.6 million (11.5% margin, 1.1% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $27.58 at the midpoint, beating analyst estimates by 0.9%
- Operating Margin: 9%, in line with the same quarter last year
- Backlog: $31.4 billion at quarter end, in line with the same quarter last year
- Market Capitalization: $10.5 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From CACI’s Q2 Earnings Call
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Scott Stephen Mikus (Melius Research): asked about the mix of pipeline bids between new program launches and incumbent takeaways. CEO John Mengucci clarified that most pipeline growth is from new customer work, with CACI focusing on differentiated, value-driven bids rather than volume.
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Colin Michael Canfield (Cantor): inquired about the impact of government funding timing on guidance. CEO Mengucci explained that quicker budget approvals could push results to the higher end of guidance, but a full-year continuing resolution would bias outcomes toward the lower end.
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Gavin Eric Parsons (UBS): questioned the effect of fewer government contracting officers on award timing. Mengucci noted modest delays but emphasized that CACI’s business model and contract extensions mitigate risks from lumpy award activity.
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Peter J. Arment (Baird): sought updates on CACI’s investments in space and optical terminals, particularly regarding Golden Dome initiatives. Mengucci reported progress overcoming supply chain issues and highlighted new opportunities with the U.S. Space Force.
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Jonathan Siegmann (Stifel): asked about the impact of Department of Defense software acquisition directives on CACI’s business. Mengucci described accelerating demand for software modernization and consolidation, especially as government customers prioritize mission-driven custom solutions.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will focus on (1) CACI’s execution and award pace in high-priority software and electromagnetic spectrum programs, (2) progress in scaling outcome-based contract models and margin expansion initiatives, and (3) the effect of federal budget cycles and funding timing on backlog and new business wins. Additionally, developments in space and counter-UAS technology adoption will be key to tracking growth opportunities.
CACI currently trades at $477, in line with $476.50 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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