CACI, SolarEdge, Alta, Montrose, and Vicor Shares Are Soaring, What You Need To Know

Defense, intelligence, and IT solutions provider CACI International fell short of the markets revenue expectations in Q4 CY2025, but sales rose 5.7% year on year to $2.22 billion. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $9.4 billion at the midpoint. Its non-GAAP profit of $6.81 per share was 4.9% above analysts’ consensus estimates.

CACI (CACI) Q4 CY2025 Highlights:

• Revenue: $2.22 billion vs analyst estimates of $2.27 billion (5.7% year-on-year growth, 2.4% miss)
• Adjusted EPS: $6.81 vs analyst estimates of $6.49 (4.9% beat)
• Adjusted EBITDA: $262.6 million vs analyst estimates of $255.3 million (11.8% margin, 2.8% beat)
• The company lifted its revenue guidance for the full year to $9.4 billion at the midpoint from $9.3 billion, a 1.1% increase
• Management raised its full-year Adjusted EPS guidance to $28.59 at the midpoint, a 3.6% increase
• Operating Margin: 9.3%, in line with the same quarter last year
• Backlog: $32.8 billion at quarter end, up 3.1% year on year
• Market Capitalization: $13.97 billion

StockStory’s Take

CACI’s second quarter fiscal 2026 results reflected ongoing momentum in technology-driven solutions, even as revenue fell short of Wall Street expectations. Management pointed to steady demand across its core national security markets and highlighted the growing role of software-defined technologies, particularly in electronic warfare and agile software development. CEO John Mengucci emphasized that CACI’s ability to anticipate customer needs and accelerate delivery was a primary factor in maintaining stable operating margins and strong cash flow, despite some lingering impacts from government shutdowns and delays in federal procurement processes.

Management’s updated outlook for the year is underpinned by increased visibility from a robust backlog and a constructive macro environment for defense and intelligence spending. The company is focusing on expanding its technology portfolio, especially through the pending acquisition of ARCA, which is expected to strengthen CACI’s position in space and intelligence markets. CFO Jeffrey MacLauchlan noted that they are "highly confident in [their] ability to hit the high end if not exceed" their revenue and EBITDA margin targets, while acknowledging that future performance will depend on timely government funding and the continued ramp-up of recently awarded programs.

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to strong execution in technology segments, a favorable customer mix, and continued investment in high-growth areas like electronic warfare and enterprise software.

• Technology revenue mix rising: Management stated that nearly 60% of total revenue now comes from technology offerings, up from prior years, driven by demand for software-defined solutions in electronic warfare and agile development projects.
• Electronic warfare leadership: CACI highlighted its leading position in electronic warfare (EW), with CEO Mengucci noting recent wins with the Army and Navy and growing demand from the Air Force. The company’s software-defined EW solutions are increasingly integrated into military operations, supporting adaptability against evolving threats.
• Acquisition of ARCA: The pending acquisition of ARCA is seen as a strategic move to strengthen CACI’s space and intelligence market offerings. Mengucci emphasized ARCA’s established presence in national security missions and its alignment with long-term defense funding streams.
• Agile software and AI deployments: CACI’s enterprise technology division secured major contracts with U.S. Customs and Border Protection, using agile methods and introducing AI-based object tracking to enhance border security and operational efficiency.
• Macro environment and funding flows: Management observed that reconciliation funding is beginning to reach key programs, particularly in border security and counter-UAS (unmanned aerial systems) initiatives, providing incremental growth drivers for the technology portfolio.

Drivers of Future Performance

Looking ahead, CACI’s management expects continued growth to be fueled by demand for technology-driven national security solutions and the integration of recent acquisitions.

• Expansion of technology portfolio: Management believes that increasing the share of technology-based revenue, such as software-defined electronic warfare and AI-enabled enterprise solutions, will support margin expansion and long-term growth.
• Integration of ARCA acquisition: The company expects the addition of ARCA to enhance its competitive standing in the space and intelligence markets, with potential for new long-term contracts and increased exposure to high-growth segments.
• Government procurement and funding risks: While the outlook is positive, management cautioned that the pace of new contract awards and funding flows may be influenced by external factors such as acquisition reform efforts, government shutdowns, and broader defense budget cycles.

Catalysts in Upcoming Quarters

In future quarters, the StockStory team will be monitoring (1) the pace at which CACI’s technology-driven contracts, especially in electronic warfare and enterprise software, convert from backlog to revenue; (2) the successful integration and early contributions of the ARCA acquisition to CACI’s space and intelligence portfolio; and (3) the impact of government funding flows, contract protests, and procurement reforms on award timing and execution. Continued progress in AI-enabled offerings and agile development will also serve as important markers.

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Defense, intelligence, and IT solutions provider CACI International fell short of the markets revenue expectations in Q4 CY2025, but sales rose 5.7% year on year to $2.22 billion. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $9.4 billion at the midpoint. Its non-GAAP profit of $6.81 per share was 4.9% above analysts’ consensus estimates.

CACI (CACI) Q4 CY2025 Highlights:

• Revenue: $2.22 billion vs analyst estimates of $2.27 billion (5.7% year-on-year growth, 2.4% miss)
• Adjusted EPS: $6.81 vs analyst estimates of $6.49 (4.9% beat)
• Adjusted EBITDA: $262.6 million vs analyst estimates of $255.3 million (11.8% margin, 2.8% beat)
• The company lifted its revenue guidance for the full year to $9.4 billion at the midpoint from $9.3 billion, a 1.1% increase
• Management raised its full-year Adjusted EPS guidance to $28.59 at the midpoint, a 3.6% increase
• Operating Margin: 9.3%, in line with the same quarter last year
• Free Cash Flow Margin: 6.2%, similar to the same quarter last year
• Backlog: $32.8 billion at quarter end, up 3.1% year on year
• Market Capitalization: $13.89 billion

“Our strong second quarter results demonstrate the continued successful execution of our strategy and the value of our differentiated capabilities. With healthy free cash flow driven by solid revenue growth and strong EBITDA margin, we're delivering on our commitments to shareholders while addressing our customers' most critical mission needs,” said John Mengucci, CACI President and Chief Executive Officer.

Company Overview

Founded to commercialize SIMSCRIPT, CACI International offers defense, intelligence, and IT solutions to support national security and government transformation efforts.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, CACI’s sales grew at a decent 8.8% compounded annual growth rate over the last five years. Its growth was slightly above the average industrials company and shows its offerings resonate with customers.

Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. CACI’s annualized revenue growth of 12.2% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

We can dig further into the company’s revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. CACI’s backlog reached $32.8 billion in the latest quarter and averaged 11.5% year-on-year growth over the last two years. Because this number is in line with its revenue growth, we can see the company effectively balanced its new order intake and fulfillment processes.

This quarter, CACI’s revenue grew by 5.7% year on year to $2.22 billion, missing Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 7.8% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above the sector average and suggests the market sees some success for its newer products and services.

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Operating Margin

CACI’s operating margin might fluctuated slightly over the last 12 months but has remained more or less the same, averaging 8.6% over the last five years. This profitability was higher than the broader industrials sector, showing it did a decent job managing its expenses.

Looking at the trend in its profitability, CACI’s operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

This quarter, CACI generated an operating margin profit margin of 9.3%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

CACI’s EPS grew at a solid 11.4% compounded annual growth rate over the last five years, higher than its 8.8% annualized revenue growth. However, this alone doesn’t tell us much about its business quality because its operating margin didn’t improve.

Diving into CACI’s quality of earnings can give us a better understanding of its performance. A five-year view shows that CACI has repurchased its stock, shrinking its share count by 13%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For CACI, its two-year annual EPS growth of 22.2% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.

In Q4, CACI reported adjusted EPS of $6.81, up from $5.95 in the same quarter last year. This print beat analysts’ estimates by 4.9%. Over the next 12 months, Wall Street expects CACI’s full-year EPS of $28.29 to grow 4.2%.

Key Takeaways from CACI’s Q4 Results

It was good to see CACI provide full-year EPS guidance that slightly beat analysts’ expectations. We were also happy its EBITDA outperformed Wall Street’s estimates. On the other hand, its revenue missed and its backlog fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $634.75 immediately following the results.

Should you buy the stock or not? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).