NEW YORK, August 7, 2026, 13:09 EDT — Cash trading begins in U.S. markets.
- Roughly 56.7% of DOGE’s reported contract savings were missing either documented termination actions or adequate identification information.
- By 12:54 p.m. EDT, federal-services shares rose between 1.0% and 2.4%, while the broader aerospace-and-defense fund was down 0.2%.
- CACI International Inc. NYSE:CACI saw its funded backlog rise by 28.6%, indicating stronger demand.
A federal audit revealed that over half of the contract savings reported by the Department of Government Efficiency failed to meet execution or verification standards. This casts doubt on the reliability of DOGE’s published total as an indicator of revenue foregone by government suppliers.
The U.S. Government Accountability Office reviewed $61 billion in reported contract savings, determining that $27.4 billion was connected to contracts lacking any documented termination. An additional $7.2 billion could not be matched to federal procurement documentation. Combined, these accounted for 56.7% of the total reviewed amount.
Investors can take some guarded comfort from the results. The data does not reverse genuine federal spending reductions. Instead, it indicates that DOGE’s top-line figure was an unreliable indicator of contractors’ true revenue at risk.
Booz Allen Hamilton Holding Corp. NYSE:BAH, Leidos Holdings Inc. NYSE:LDOS, and Science Applications International Corp. NASDAQ:SAIC also moved higher with CACI on Friday, posting gains between roughly 1.0% and 2.4%.
Audit test of contract savings
| GAO test | Amount | Share of $61 billion | Investor interpretation |
|---|---|---|---|
| No recorded termination action | $27.4 billion | 44.9% | Headline figure may exaggerate revenue impact |
| Could not be linked to procurement data | $7.2 billion | 11.8% | Independent verification of exposure is not possible |
| Combined execution or verification gap | $34.6 billion | 56.7% | DOGE aggregate figure found unsuitable as wider model |
| DOGE’s stated calculation method followed | $16.8 billion | 27.5% | Methodology itself recognised as having challenges |
Data for percentages is based on GAO figures. The groups with no termination and those lacking identifiers are distinct.
The $34.6 billion amount does not indicate that all funds involved were fraudulent. According to GAO, certain contracts might have been modified or partially deobligated instead of being terminated. Additionally, delays in USAID procurement records could contribute to an inflated no-action category.
Nonetheless, issues with the methodology went far past records of terminations. DOGE applied its specified contract formula to just 27.5% of the reported savings, while the other 72.5% relied on different or unclear methods.
GAO assessment of DOGE’s different types of receipts
| Category | DOGE-reported amount | GAO test result | Main discrepancy |
|---|---|---|---|
| Contracts | $61.0 billion | Confirmed process for $16.8 billion | $44.2 billion calculated differently or by unknown means |
| Grants | $49.21 billion | Other calculations agreed with $1.89 billion | $47.32 billion method not established |
| Leases | $113 million as displayed online | GAO identified $31.8 million in savings | $81.1 million counted in excess |
The assessments vary depending on category, so they should not be seen as directly equivalent metrics for savings that do not exist.
A narrower review highlighted a more pronounced difference. The GAO assessed 21 chosen Defense and Health contracts representing $7.5 billion in DOGE savings. The agency found $77.8 million in deobligated funds that could potentially be reused, representing approximately 1.0% of the total claim. The sample was not representative from a statistical standpoint.
A Defense Health Agency technology deal saw no adjustments. DOGE maintained reports of over $1.7 billion in savings, with no cancellation, reduction in scope or deobligation.
Grants represented the biggest area of uncertainty, with the GAO unable to confirm the methodology for 96.2% of the $49.21 billion disclosed. In the case of leases, the errors involved smaller sums but were more transparent, such as cost reductions counted for 108 departures that had commenced even before DOGE was established.
The DOGE website continues to report estimated overall savings of $215 billion. According to the site, contracts, grants, and leases with full details account for approximately 30% of that figure. The webpage notes its most recent update was on January 1, 2026.
Company disclosures provide stronger signals. CACI reported a 10.9% increase in fiscal 2026 revenue to $9.57 billion. Annual contract awards totaled $10.2 billion, and funded backlog rose to $5.4 billion. “In a challenging environment, we grew free cash flow by 66%,” Chief Executive John Mengucci said. CACI Investor Relations
Overview of the federal services sector
| Security | Price at around 12:54 p.m. EDT | Friday change | Trailing P/E |
|---|---|---|---|
| BAH | $75.69 | up 2.4% | 11.9 |
| LDOS | $136.70 | up 1.1% | 12.7 |
| CACI | $635.11 | up 1.0% | 26.3 |
| SAIC | $125.97 | up 1.4% | 14.2 |
| S&P 500 proxy, SPY | $772.28 | up 0.5% | — |
| U.S. aerospace-defense fund, ITA | $249.60 | down 0.2% | — |
The advance on Friday cannot be explained by the audit alone. CACI surged 21.4% on Thursday following its earnings announcement. Its increased valuation is linked to robust recent growth, solid cash flow, and a funded backlog.
Booz Allen continues to serve as a warning. Its most recent report indicated that growth was coming from national-security contracts instead of work for civil agencies. This points to the fact that DOGE’s accounting issues have not eased the challenges faced by contractors who rely more heavily on civil projects.
Analysts’ ratings
| Company | Consensus | Buy-equivalent / Hold / Sell-equivalent | Average target | Implied change |
|---|---|---|---|---|
| BAH | Hold | 3 / 9 / 4 | $85.58 | +13.1% |
| LDOS | Overweight | 8 / 12 / 0 | $149.60 | +9.4% |
| CACI | Overweight | 14 / 4 / 0 | $685.00 | +7.9% |
| SAIC | Hold | 2 / 7 / 2 | $118.89 | -5.6% |
Buy-equivalent includes both Buy and Overweight ratings, while Sell-equivalent covers Underweight and Sell. Implied changes are based on Friday’s intraday prices.
Analyst opinions are divided. Consensus ratings for CACI and Leidos are higher. Booz Allen and SAIC are still rated Hold, even after Friday’s increase. This indicates Wall Street continues to prioritise contract mix and execution over general DOGE headlines.
The principal challenge to the relief narrative is clear. The GAO’s review focused on past accounting, rather than examining future funding decisions. Agencies remain able to scale back projects, postpone contract awards or reallocate budget allocations. CACI notes risks from possible contract terminations and shifts in government priorities as significant concerns.
The investor takeaway is limited. DOGE’s Wall of Receipts is not appropriate as a contractor revenue model. Funded backlog, signed awards, and cash conversion continue to provide more reliable indicators.
