CACI

CACI is a leading provider of expertise and technology to U.S. national-security customers — roughly 75% of revenue comes from defense and intelligence-community clients, with the rest in homeland security and federal civilian agencies. The growth record is excellent and consistent: FY2025 revenue rose 12.6% to $8.63B, the latest in an unbroken climb from $6.04B in FY2021, while net income grew 19.0% to $500M and diluted EPS jumped 20.0% to $22.32. Operating income rose 17.6% to $764M, so profitability is scaling slightly faster than the top line, and the company generated $547M of operating cash flow (+10.0%).

The macro setup is unusually favorable for a government-services name. Management notes bipartisan support for defense spending amid a heightened global threat environment, and details a constructive budget cycle: the GFY25 full-year CR set defense spending at $893B, and the One Big Beautiful Bill Act adds roughly $156B in additional defense funding (including $25B for the Golden Dome initiative) plus ~$170B for border security and immigration — which, combined with the GFY26 request, represents ~13% growth over GFY25 enacted levels. That funding is available whether or not normal appropriations pass, a meaningful de-risking of the perennial continuing-resolution overhang.