CACI International, Inc
CACI International is a U.S.-based government services and technology contractor that builds and supports mission systems for defense, intelligence, and federal civilian agencies. The company started in 1962 as a simulation technology business and has evolved into a provider of technical expertise, software, data platforms, cyber capabilities, and electromagnetic spectrum solutions. Most of its revenue comes from U.S. government customers, with a smaller international business centered in the U.K. and continental Europe. Its work is tied to national security priorities such as cyber defense, intelligence operations, network modernization, and spectrum superiority.
Fiscal year 2026 · change from previous year
Development 2021–2026
Business
Share of revenueTechnical and functional labor supporting agency operations, including software, analysis, engineering, and mission support.
Modern software, AI-enabled applications, ERP systems, and data platforms used to modernize government missions.
Cyber defense, network modernization, and secure communications capabilities for government customers.
RF, electronic warfare, ISR, photonics, and spectrum technologies for battlefield sensing and communications.
IT consultancy and proprietary data/software products sold mainly in the U.K. and Europe.
Products
Reported · share of revenue- Technology Service58.4 %
- Services and other41.6 %
Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
CACI sells primarily to U.S. government agencies, especially the Department of Defense, the Intelligence Community, and federal civilian departments. These customers buy CACI because the company combines cleared technical labor with mission-specific software and systems that can be deployed in sensitive national security environments. The company also serves foreign governments, U.K.-based commercial enterprises, and some U.S. state and local or commercial customers through its international and commercial channels. Demand is driven by budget priorities in defense, intelligence, cyber, border security, and modernization programs, which makes customer funding decisions central to revenue growth.
Buys mission support, cyber, C3I, and spectrum superiority capabilities for defense programs and operational readiness.
Buys intelligence support, network exploitation, secure communications, and specialized technology for classified missions.
Buys IT services, modernization support, and program operations for departments such as Homeland Security, Justice, HHS, and State.
Buys IT services and proprietary data/software products through European subsidiaries, mainly in the U.K. and continental Europe.
Buys selected IT and software services, plus some state/local government work, mainly through the international and commercial channel.
Strategy
CACI’s strategy is to grow organically across a large addressable market while staying aligned with U.S. government spending priorities in defense, intelligence, cyber, space, and modernization. The company emphasizes differentiated technology and expertise, using R&D and selective acquisitions to expand capabilities and create new customer access points. It also focuses on recruiting and retaining cleared technical talent, since execution quality and program continuity are central to winning recompetes and new awards. Management highlights strong profitability and cash flow as strategic goals, reflecting the capital discipline needed in a contract-driven government services model.
Revenue growth depends on winning new awards and expanding existing programs in a large but competitive federal market.
Software, AI, cyber, and spectrum capabilities help the company compete against larger integrators and non-traditional tech firms.
M&A can add technical depth, new customer relationships, and faster entry into adjacent mission areas.
The business is labor-intensive and depends on specialized cleared personnel to deliver on contracts and maintain backlog conversion.
Geography
CACI’s business is overwhelmingly U.S.-centric, with domestic operations representing 97.0% of fiscal 2025 revenue and international operations 3.0%. The U.S. business is tied to federal budget cycles and national security spending, so changes in appropriations and continuing resolutions can affect timing of awards and program starts. International operations are run mainly through subsidiaries in London and the Netherlands and focus on the U.K., continental Europe, and other overseas customers. The small international footprint adds foreign exchange, tax, and political exposure, but it also gives the company a channel for proprietary software and IT services outside the U.S. federal market.
Risks
CACI is highly exposed to U.S. federal spending because substantially all revenue comes from government contracts, so delays, shutdowns, or budget cuts can reduce award timing and program starts. The company also faces intense competition from large integrators and non-traditional technology firms in cloud, cyber, satellite, and business systems, which can pressure pricing and win rates. Because much of the work is performed under cost-plus, fixed-price, and time-and-materials arrangements, execution risk on labor, subcontractor costs, and estimates can affect margins and contract losses. International operations add foreign exchange, tax, and political risk, while cyberattacks, systems failures, and protection of proprietary information remain important operational threats.
- Dependence on federal government spendingImpact: CriticalLikelihood: Medium
Substantially all revenue comes from federal contracts, so reduced funding or procurement delays would directly affect backlog conversion and revenue.
Exposure - Continuing resolutions and government shutdownsImpact: HighLikelihood: Medium
CRs can delay new program starts and award decisions, while shutdowns can interrupt customer activity and slow contract flow.
Exposure: U.S. government procurement cycle
- Contract estimate and execution riskImpact: HighLikelihood: Medium
Fixed-price and percentage-of-completion contracts require estimates of costs and completion that can change materially.
Exposure - Competitive pressure from non-traditional playersImpact: HighLikelihood: Low
Cloud, cyber, satellite, and software firms are competing for the same budgets and can reduce CACI’s pricing power.
Exposure - Cybersecurity and systems disruptionImpact: HighLikelihood: Low
The company and its customers operate in sensitive environments where malware, intrusions, or outages can interrupt delivery and damage reputation.
Exposure - International operating riskImpact: MediumLikelihood: Low
Foreign exchange, tax, and political changes can affect the small but important international business.
Exposure
Accounting
Judgemental itemsMost revenue is recognized as services are performed, using cost-to-cost, labor-hours, time-elapsed, or right-to-invoice methods, which makes estimates central to reported revenue.
Impact: Can accelerate or defer revenue and margin recognition
If estimated total costs exceed total revenues on a contract, the full expected loss must be recorded when identified.
Impact: Can create sudden operating margin pressure
Goodwill is large and tested annually using judgmental assumptions about cash flows, discount rates, and market comparables.
Impact: Potential for material non-cash impairment charges
Finite-lived intangibles are amortized over useful lives, affecting operating income and comparability after acquisitions.
Impact: Reduces earnings and can obscure underlying cash generation
Floating-rate debt is partially hedged with swaps, so derivative valuation and hedge accounting affect interest expense and OCI.
Impact: Can change reported financing costs
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Last updated: 24/09/2026