Robust Government Funding And Digital Transformation Will Expand Addressable Markets

CACI International’s analyst price target has increased from $569.42 to $576.00. Analysts cite strengthened margin performance, favorable positioning in the government services sector, and positive outlooks under the current administration as key drivers for the upward revision.

Analyst Commentary

Recent analyst activity around CACI International has highlighted a variety of perspectives on the company's performance and outlook. Both positive and cautious views have been offered based on post-earnings updates, valuation, sector positioning, and future growth opportunities.

• Bullish analysts point to CACI’s strong margin expansion, attributing it to the company’s strategic shift toward advanced technologies.
• There is optimism regarding CACI’s potential to outperform peers in growth over the medium term, supported by its high-quality execution and recent financial results.
• Analysts note that CACI remains attractively valued compared to sector peers, particularly after upward revisions in estimates and guidance.
• Recent increases in price targets reflect confidence in CACI’s positioning in government services, with expectations of favorable growth under the current administration and continued new business wins.

• Bearish analysts have raised concerns about valuation following the recent increase in share price and upward revisions to price targets.
• Some see potential upside as increasingly limited due to a less attractive risk-reward balance after strong performance, leading to downgrades.
• There are cautions regarding the sustainability of above-peer margin performance, as it could attract increased competition and execution challenges.
• Changes in sector dynamics or shifts in government contract priorities could present headwinds for CACI’s outlook going forward.

What's in the News

• CACI International has been awarded an indefinite-delivery/indefinite-quantity contract with a total cumulative face value of $1.64 billion to provide technical support for the Joint Transportation Management System at Scott Air Force Base, Illinois. The contract runs from August 2025 through August 2035. (Key Developments)
• The company secured a five-year, $180 million task order to deliver continuous, secure, and stable network operations across the Pacific theater for the Air Force's Pacific Air Forces, supporting U.S. Indo-Pacific Command. (Key Developments)
• CACI International is set to modernize the Department of the Air Force's network for intelligence and targeting data transmission through a $73 million, five-year contract. The company will leverage software-defined technology to enhance secure, multi-domain data exchange. (Key Developments)
• Two contracts awarded to CACI by the Canadian Armed Forces, with a total value of approximately $124 million, will provide advanced counter-uncrewed aircraft systems (C-UAS). This includes mobile, modular vehicle platforms to protect against drone threats. (Key Developments)
• The company announced fiscal year 2026 guidance, projecting revenues of $9.2 billion to $9.4 billion and net income between $499 million and $519 million. (Key Developments)

Valuation Changes

• Consensus Analyst Price Target has risen slightly, from $569.42 to $576.00.
• Discount Rate has edged down, moving from 7.57% to 7.55%.
• Revenue Growth projections remain essentially unchanged, adjusting marginally from 6.29% to 6.29%.
• Net Profit Margin forecasts have decreased slightly, from 6.16% to 6.09%.
• Future Price-to-Earnings (P/E) ratio has increased moderately, from 22.23x to 22.71x.