8-K: Booz Allen Hamilton Reports Fiscal 2026 Results

Booz Allen Hamilton reported fiscal 2026 full-year revenue of $11.2 billion, navigating a challenging market environment while maintaining strong profitability and backlog growth.

Summary

• Fiscal 2026 revenue reached $11.2 billion, a 6.4% year-over-year decrease.
• Full-year net income was $851 million, down 9.0% from the previous year.
• Adjusted Diluted EPS for the full year rose 2.5% to $6.51.
• Total backlog increased 3.1% to a record $38 billion.
• Free cash flow for the year was $951 million, compared to $911 million in fiscal 2025.
• The company declared a regular quarterly dividend of $0.59 per share payable on June 26, 2026.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a stable performance in a difficult environment; while revenue growth is stagnant, the company maintained margins and record backlog, signaling long-term resilience.

Positives

• Record total backlog of $38 billion provides strong revenue visibility.
• Adjusted Diluted EPS increased 10.6% in Q4 and 2.5% for the full year.
• Free cash flow improved to $951 million, demonstrating strong operational cash generation.
• Adjusted EBITDA margin on revenue remained stable at 11.0% for the full year.
• Successful capital deployment of $1.1 billion during the fiscal year.

Negatives

• Full-year revenue declined 6.4% to $11.2 billion.
• Full-year Adjusted EBITDA decreased 6.5% to $1.23 billion.
• Total headcount decreased from 35,800 to 31,500 year-over-year.
• Quarterly book-to-bill ratio softened to 0.9x.

Risks

• Slowed procurement and funding environments impacting revenue growth.
• Anticipated declines in the Civil business portfolio.
• Potential volatility in GAAP financial results due to non-operational charges.
• Dependence on government contract cycles and budget appropriations.

Future Outlook

For fiscal year 2027, the company expects revenue between $11.2 billion and $11.7 billion (0-4% growth), Adjusted EBITDA of $1.24 billion to $1.29 billion, and Adjusted Diluted EPS of $6.00 to $6.35.

Management Comments

• In a challenging year, Booz Allen delivered strong profitability while continuing to accelerate our transformation.
• We enter FY27 with momentum and are well-positioned for the year ahead.

Industry Context

StockSavvy.ai notes that Booz Allen Hamilton is navigating a bifurcated market where National Security demand remains robust, while the Civil sector faces headwinds from budget constraints and difficult year-over-year comparisons, a trend consistent with broader defense and government services contractors.

Comparison to Industry Standards

• The 1.1x trailing twelve-month book-to-bill ratio remains healthy compared to industry peers in the government services sector.
• The 11% Adjusted EBITDA margin is consistent with top-tier performance in the defense consulting industry.
• The company's focus on AI-native products and cyber aligns with the strategic pivot seen across major defense contractors like Leidos and CACI.

Legal Proceedings

• The company continues to manage ongoing audits and compliance related to government contract claimed costs.

Stakeholder Impact

• Shareholders benefit from continued dividend payments and share repurchases.
• Employees face potential restructuring impacts as the company manages cost initiatives.

Next Steps

• Host earnings conference call on May 22, 2026.
• Pay quarterly dividend on June 26, 2026.
• Execute fiscal 2027 growth strategy focusing on National Security and AI-native products.

Key Dates

Recommendation

The company is performing steadily in a difficult macro environment, but with revenue growth guidance for FY27 being modest (0-4%), investors should hold until there is clearer evidence of top-line acceleration.

Keywords

Booz Allen Hamilton, BAH, Defense Technology, Cybersecurity, Government Contracting, Fiscal Results, AI-native products