Booz Allen Hamilton Holding Stock Earnings Reports

Booz Allen reported Q1 FY2026 results broadly in line with expectations while emphasizing a strategic acceleration toward technology-led, outcome-based work. Key financials: gross revenue fell ~1% to $2.9B while revenue excluding billables (higher-margin revenue) rose ~2% YoY. Defense and Intel grew (Defense +7%, Intel +6%) while Civil declined (-13%) after a targeted reset. Bookings were strong: $4.2B booked in the quarter, book-to-bill 1.42x, and total backlog reached a Q1 record $38B (+11% YoY); proposal pipeline is about $43B. Profitability: adjusted EBITDA was $311M (10.6% margin), net income $271M (helped by a one‑time $106M tax benefit), adjusted net income $184M, diluted EPS $2.16 and adjusted EPS $1.48. Cash and balance sheet: $711M cash, net debt $3.3B, net leverage 2.5x. Free cash flow guidance was updated to $900M–$1.0B (reflecting federal tax impacts from recent legislation); the company also expects a ~ $170M IRS refund next fiscal year. Capital deployment: ~$154M in share repurchases (~1% of shares), $70M dividends, and a $200M incremental commitment to Booz Allen Ventures. Operational and strategic priorities: continued transformation under the VoLT (velocity, leadership, technology) strategy, focus on outcome-based/fixed-price work, stronger tech partnerships and venture investments, investments in defense-edge tech (MDK, Tactical Assault Kit additions, $315M TOC-L award). Near-term risks/notes: procurement and funding are slower than historical norms and some contracts are under review, which pressures Civil near-term revenue and hiring is being paced to demand (company ended Q1 with ~33,000 employees). Management expects funding normalization to drive re-acceleration in the back half of the fiscal year.