$CACI · CACI INTERNATIONAL INC /DE/
CACI International filed its 10-Q for Q1 FY2027 (ended September 30, 2026), reporting revenue of $2.475B (+8.2% YoY), net income of $130.4M (+4.5%), and diluted EPS of $5.84 vs. $5.63. Organic growth was 2.1%, with the remainder from acquisitions including the $2.64B ARKA Group deal closed in March 2026. Interest expense rose sharply to $73.2M from $46.2M a year ago, reflecting debt incurred for the ARKA acquisition.
- Revenue rose 8.2% YoY to $2.475B, with organic growth of 2.1% and the rest from acquisitions.
- Diluted EPS of $5.84 vs. $5.63 a year ago; net income $130.4M, up 4.5%.
- Interest expense jumped 58.6% to $73.2M, driven by debt taken on for the $2.64B ARKA Group acquisition.
- Department of War revenues surged 14.8% to $1.35B; federal civilian agencies declined 3.7%.
- Operating margin compressed to 10.0% from 9.3% a year ago, but D&A rose 46% on acquisition intangibles.
Shares fell 1.76% since filing to $614.58. The market appears to be digesting the sharp rise in interest costs and margin pressure from the ARKA integration, offsetting the solid top-line beat.
CACI's first full quarter with ARKA shows the double-edged sword of mega-acquisitions: strong revenue growth offset by surging debt-service costs that muted EPS expansion to just 3.7%.
CACI's 8.2% revenue growth outpaces many defense IT peers, but the ARKA integration is driving a familiar playbook: acquisition-fueled top-line gains paired with rising amortization and interest burdens that dilute EPS growth.
Interest expense of $73.2M (up 58.6% YoY) on $4.84B in total debt raises leverage concerns, especially if rates stay elevated. The ARKA purchase price allocation remains incomplete, with potential adjustments to goodwill and intangibles still pending.
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