He contributed greatly to the growth and success of many organizations, including CACI International Inc, where he was a steadfast supporter of our strategy. We deployed capital to acquire three strategic assets while also repurchasing $150 million of shares. As we've discussed many times, we undertook a strategy years ago to become a more focused and differentiated company that was positioned to drive long-term growth and shareholder value in any environment. The market trends you're increasingly seeing and hearing about today: speed, efficiency, lethality, software-based capabilities, modernization.
We are a leader in the use of software and investing ahead of customer need to develop and deliver high-value capabilities faster, more efficiently, and with greater flexibility. CACI today delivers differentiated software-defined, commercially developed, and commercially sold technology to multiple customers who demand best-in-class capabilities. It is one of the first successful rapid-fielding mid-tier acquisitions for the Army because of CACI's ability to rapidly prototype and deliver a cutting-edge solution in record time. The recent ceiling increase to $500 million supports the Army's decision to deploy our technology as the primary SIGINT EW system for all brigade combat teams.
Second, our software-defined counter-UAS technology is addressing the increased demand for protection against drones. We're also seeing increasing demand for our technology in support of U.S. Next, enterprise software modernization is another area where CACI is both well-aligned to the administration's priorities and where we have demonstrated clear industry leadership. Turning to the macro environment, we continue to see healthy customer demand and a strong pipeline of opportunities in our markets.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue | FY2026 | $9.2B-$9.4B (6.6%-8.9% growth) (growth of nearly 8% at midpoint) |
| EBITDA margin | FY2026 | mid-11% range (+30 bps at midpoint) |
| Adjusted net income | FY2026 | $605M-$625M |
| Adjusted diluted EPS | FY2026 | $27.13-$28.03 |
| Free cash flow | FY2026 | at least $710M |
| Free cash flow per share | FY2026 | $31.84 (growth of more than 60%) |
| Metric | YoY | Note |
|---|---|---|
| Q4 revenue | +13% (5.3% organic) | strong customer demand for differentiated technology and expertise |
| Q4 adjusted diluted EPS | +27% | greater operating income, lower tax provision, and lower share count more than offset higher interest expense |
| FY2025 revenue | +16% underlying (10% organic) | faster ramp-up of awards, stronger on-contract growth, and successful recompete defense |
| FY2025 EBITDA margin | +80 bps to 11.2% | exceptional execution and portfolio positioning |
| FY2025 adjusted diluted EPS | +26% to $26.48 | operating execution and lower tax provision, despite $54M higher interest expense |
| FY2025 free cash flow | +16% per share to $442M | strong profitability and cash collections |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Software-defined / mission technology positioning | — | Central growth driver; management says CACI is already aligned to government's shift toward speed, software and lethality and does not need to transform | Up |
| Reconciliation funding (One Big Beautiful Bill Act) | — | Over $150B for defense ($25B Golden Dome) and ~$170B for border security viewed as favorable for CACI's 90% national security revenue base | Up |
| Award environment / contracting officer reductions | discussed last couple of quarters | Modest impacts; some award decisions taking longer, but tighter procurement bandwidth could extend existing CACI work | Stable |
| Pipeline and book-to-bill | — | $16B of bids under evaluation (80% new business), another $11B to submit over two quarters; 1.1x trailing book-to-bill | Up |
| Federal civilian exposure | strategic shift began in 2019 | Only ~5% of revenue in broader federal civilian space; intentional pivot toward defense/intel insulates from cost-efficiency actions | Stable |