CACI International (CACI) Earnings Growth Exceeds Five-Year Trend, Reinforces Positive Valuation Narrative

CACI International (CACI) posted annual earnings growth of 11.1%, a solid step up from its five-year compound annual rate of 4.1%. Earnings are forecast to expand at 9.1% per year, with revenue expected to rise at a 5.9% clip as net profit margins held at 5.7% compared to 5.8% the year before. Against this steady financial backdrop, investors are likely to focus on CACI’s ongoing profit growth and signals of attractive relative value heading into future quarters.

See our full analysis for CACI International.

Up next, we will see how these headline numbers compare to the market narratives already shaping opinions, and where new results might shift the story.

See what the community is saying about CACI International

Profit Margin Trends Hold Steady

• CACI's net profit margins remained steady at 5.7% this year, nearly matching last year's 5.8% and indicating resilience even as broader industry pressures persist.
• Analysts' consensus view points to additional support for margins, as CACI's focus on higher-value digital contracts and strategic acquisitions in cyber and AI is expected to help margins climb to 6.1% over the next three years.
  • This margin expansion supports the view that CACI's government technology leadership and contract visibility are strengthening its long-term profitability.
  • What’s especially notable is how these margin projections reinforce the consensus that CACI is positioned to absorb cost pressures better than peers, mainly due to its focus on recurring, mission-critical work.
• To evaluate whether margin stability aligns with the consensus narrative, analysts highlight ongoing investments in tech and M&A as the key drivers of future profitability. 📊 Read the full CACI International Consensus Narrative.

Share Price Below DCF Fair Value

• At $585.55, CACI trades noticeably below its DCF fair value estimate of $753.72. Its price-to-earnings ratio of 25.5x is also a discount to the peer average of 34x and industry average of 26.5x.
• Analysts' consensus narrative notes that this valuation gap, combined with forecast earnings per share growth to $30.96 by 2028, strongly supports the idea that CACI offers both growth and relative value in a government-driven tech market.
  • The current share price reflects a 22% discount to intrinsic value, suggesting an opportunity for investors who have confidence in CACI's capacity to deliver steady expansion and margin improvement.
  • Consensus perspective argues that the company's long-term tech contracts and recurring revenue base justify ongoing pricing power, making today’s discount more appealing if fundamentals remain stable.

Government Funding and Advanced Tech Catalysts

• Government spending bills have allocated over $150 billion for defense and $170 billion for border security, expanding CACI's market opportunity and backlog for national security and defense contracts.
• Analysts' consensus narrative attributes CACI’s improved revenue outlook to these structural funding increases, along with accelerated adoption of advanced technologies such as cyber solutions and enterprise software modernization.
  • This rising demand for outcome-based, tech-enabled federal contracts is expected to enhance both contract visibility and pricing power in the years ahead.
  • Consensus foresees strategic acquisitions and digital transformation as essential for sustaining revenue growth, with CACI’s strong track record improving both win rates and margin stability.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for CACI International on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your CACI International research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

See What Else Is Out There

While CACI’s profit margins remain resilient, its earnings outlook relies heavily on stable government contracts and does not match the rapid, sustained growth rates seen in top performers.

If you want more consistent expansion with less reliance on government spending cycles, use our stable growth stocks screener (2099 results) to spot companies that deliver steady results year after year.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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