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CACI International Inc (CACI) Q4 FY2026 — Q4 FY2026 (3 months ended June 30, 2026): revenue $2.709B, UP 17.6% (organic 11.6%), a beat vs ~$2.695B. Adjusted diluted EPS $8.91 vs a $7.39 bar - a 20.6% BEAT. GAAP diluted EPS $7.05, DOWN 1.3%, even though income from operations rose 31.7% and pretax income rose 24.3%. EBITDA margin 13.0%, up 150bps. FY2027 guided to revenue $10.65-10.85B and adjusted EPS $32.96-33.86, with free cash flow of at least $900M. The 8-K was accepted 4:44pm ET Wednesday Aug 5, AFTER the close; Thursday Aug 6 was the reaction session and the stock rose 21.38% to $628.79, then $644.43 on Friday. CACI beat the bar by 20.6%, grew revenue 17.6%, and the stock rose 21.38% in one session on four times normal volume. Here is what almost nobody said out loud. Cut the quarter by contract type and half the company did not grow at all: cost-plus-fee revenue, the government services base and 51.5% of the quarter, grew $11.4M on a $1,384.0M base - 0.8%. Fixed-price product work grew $321.6M, up 51.9%. Every dollar of the 17.6% came from product and technology, not services - and that mix shift is also where the 150bps of EBITDA margin came from. CACI's 52-week closing low of $440.76 was set on July 21, twelve trading days before this print. THE CALL: HOLD (3/5, FAIR VALUE $600 vs THE $644.43 CLOSE - AN EXCELLENT QUARTER, FULLY PAID FOR IN TWO SESSIONS) — base-case value ~$600.0 vs ~$644.43 today. KEY METRICS: - CALL: HOLD 3/5, fair value $600 vs the $644.43 Aug 7 close = 6.9% DOWNSIDE. Bull $720, bear $530. Buy under $540. EV $18.95B = 16.1x FY2026 EBITDA of $1.174B and 14.1x our FY2027E $1.34B. Net debt $4.71B, 4.0x. FY2027 guided FCF $900M = a 6.3% yield. FY2027 adjusted EPS midpoint $33.41 = 19.3x. Peers: LDOS 10.1x, BAH 10.2x, SAIC 10.8x EV/EBITDA. - Street: Buy. 29 analysts (20 buy / 9 hold / 0 sell), average target $686.20, low $510, high $892 (Stifel Nicolaus, Aug 6, 2026). That average implies +6.5%; our $600 implies -6.9%. EPS BASIS PROVEN: the four FY2026 quarters 6.85+6.81+7.27+8.91 = $29.84 = the reported adjusted $29.83, not the $24.16 GAAP - so the $8.91 vs $7.39 beat is apples to apples. What to watch: UP: revenue $2.709B, +17.6% with 11.6% organic; adjusted diluted EPS $8.91 against a $7.39 bar; EBITDA $353.1M at a 13.0% margin, up 150bps; income from operations +31.7% and pretax income +24.3%; fixed-price revenue +51.9%, still ~+29.7% organically after stripping out ARKA; Technology revenue +23.7%; funded backlog +28.6% to $5.4B, half the FY2027 guide; total backlog $32.0B; FY2026 awards $10.245B at a 1.1x book-to-bill; FY2027 guided to at least $900M of free cash flow, a 6.3% yield; and net leverage back to the low threes by June 2027, a quarter early. DOWN: cost-plus-fee revenue, 51.5% of the quarter, grew just 0.8%; guided FY2027 organic growth of 6.1-8.2% is flat against the 7.2% just delivered, so the acceleration from 10.9% to 12.4% is entirely ARKA annualising; 50.8% of the 66% free cash flow jump was a $172.4M deferred-tax swing, not operations; net leverage 4.0x, up from 2.9x, after $4.33B of acquisitions in two years; Q4 awards fell 37.7% to a 0.61x book-to-bill; Q1 FY2027 organic growth is guided to low single digits; and the stock repriced 24.4% in two sessions. Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.