CACI International Inc.
CACI International Inc (CACI)
Overview
CACI International Inc is a Delaware-incorporated government services and technology company founded in 1962, headquartered in Northern Virginia, that provides expertise and technology to U.S. national security, defense, and federal civilian customers, with a smaller international presence in the U.K. and continental Europe. It is a large-cap defense/government IT contractor with a market capitalization of roughly $13.9 billion and approximately 25,000 employees as of June 30, 2025 (fiscal year-end). Nearly all of CACI's revenue comes from the U.S. federal government, with Department of Defense agencies alone accounting for about 75.4% of fiscal 2025 revenue, making it one of the more DoD-concentrated names among the major government services contractors.
What They Do & How They Make Money
CACI makes money by winning and executing federal government contracts — primarily with the Department of Defense and national intelligence agencies, plus federal civilian agencies — delivering both specialized talent ("Expertise") and proprietary technology ("Technology"). On the expertise side, CACI supplies software developers, data analysts, intelligence specialists, naval architects, engineers, and operations personnel, many holding security clearances, to support government missions. On the technology side, it develops and delivers agile software, AI-augmented data and analytics platforms, enterprise IT and ERP systems, electromagnetic spectrum and electronic warfare capabilities, photonics, and network modernization solutions. Contracts span fixed-price (26.3% of fiscal 2025 revenue), cost-reimbursable, time-and-materials, and large indefinite-delivery/indefinite-quantity (IDIQ) and GSA schedule vehicles; the top ten revenue-producing contracts alone generated about $4.0 billion, or 46.4% of total fiscal 2025 revenue, reflecting meaningful contract concentration. CACI supplements organic growth with an active acquisition strategy — it completed seven acquisitions over the three fiscal years through FY2025 — to add capabilities (such as AI, cyber, and space technologies) and expand its addressable market within the government contracting ecosystem.
Business Segments
CACI reports its business primarily by geography rather than discrete product segments, reflecting where the vast majority of its revenue and growth investment is concentrated:
- Domestic Operations — About 97.0% of fiscal 2025 revenue, spanning seven internal market areas: C3I (command, control, communications, and intelligence), Cyber, Digital Solutions, Enterprise IT (serving roughly 50 federal agencies), Mission & Engineering Support, Space, and Spectrum Superiority (radio-frequency and electronic warfare technologies).
- International Operations — About 3.0% of fiscal 2025 revenue, conducted mainly through U.K. and Netherlands subsidiaries serving both government and commercial customers.
Competitors
CACI competes in the large, well-established government services and defense IT industry against numerous rivals, several with greater scale or financial resources:
- Leidos, Booz Allen Hamilton, SAIC, and Peraton — the closest direct peers in IT services, intelligence support, and systems integration for defense and intelligence agencies.
- General Dynamics Information Technology, L3Harris, and Northrop Grumman's IT/mission systems units — larger defense primes with significant government services businesses.
- Accenture Federal Services and other management/technology consultancies — increasingly competing for federal digital transformation and cloud work.
- Non-traditional entrants in cloud computing, cyber services, and satellite/space operations, which CACI specifically flags as an evolving competitive threat.
Competitive Position
CACI's strength lies in deep incumbency across long-running government programs, a large base of security-cleared personnel (a meaningful barrier to entry given clearance timelines and costs), and a dual expertise-plus-technology model that lets it bid both staff-augmentation and product-based contracts. Its acquisition strategy has continually added higher-growth capabilities (AI, cyber, space) to a base of more traditional IT and engineering services, helping offset the maturity of some legacy programs. That said, CACI itself acknowledges holding only "a relatively small share of the addressable market," underscoring that scale alone is not a decisive moat in an industry with several similarly-sized competitors. Key risks include heavy reliance on U.S. federal — and specifically DoD — spending, which exposes CACI to budget uncertainty, continuing resolutions, and government shutdowns; contract recompete risk, since incumbency provides an edge but not a guarantee, especially as fixed-price and competitively-bid work grows; revenue concentration in a top-ten contract base; and rising competition from both traditional primes and non-traditional technology entrants moving into cloud, cyber, and space. CACI's continued growth will depend on converting its M&A-built technology capabilities into differentiated, harder-to-recompete offerings rather than commoditized staffing work.