MCLEAN: Booz Allen Hamilton Holding Corporation (NYSE: BAH) opened its fiscal 2026 with resilient earnings and a historic backlog, underscoring strong demand across its defense and intelligence segments despite a slight revenue dip.
Booz Allen is an advanced technology company delivering outcomes with speed for America’s most critical defense, civil, and national security priorities.
The tech-driven consultancy reported revenue of $2.924 billion for the first quarter, down just 0.6% from last year. But adjusted net income rose 2.2% to $184 million, while adjusted EBITDA climbed 3.0% to $311 million. Diluted adjusted earnings per share jumped 7.2% to $1.48.
CEO Horacio Rozanski emphasized the firm’s tech-forward strategy:
“Booz Allen is winning work that enables us to bring tech into the administration’s mission priorities. We are accelerating investments and partnerships across the tech ecosystem.”
Key Q1 Metrics:
- Record backlog: $38.3 billion, up 10.7% YoY
- Book-to-bill ratio: 1.42x
- Free cash flow: $96 million, nearly five times the prior year’s level
- Capital deployment: $233 million
The company benefited from a new S174 tax rule, anticipating a $200 million federal cash tax benefit this fiscal year. It also repurchased 1.1% of its outstanding shares and declared a quarterly dividend of $0.55 per share, payable August 29.
FY26 Outlook:
- Revenue: $12.0–$12.5 billion
- Adjusted EBITDA: $1.315–$1.370 billion
- Adjusted EPS: $6.20–$6.55
- Free cash flow: $900–$1,000 million
Despite a 13% drop in civil sector revenue, defense and intelligence contracts grew steadily. The company attributed margin gains to efficient cost structures and high-value engagements.