Booz Allen Hamilton Holding Corp - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.66%.
Did BAH Beat Earnings? Q4 2025 Results
Booz Allen Hamilton closed out fiscal 2025 with a narrow quarterly miss on both top and bottom lines, even as the company capped off an ambitious three-year strategic period with results that exceeded its own long-term targets. For Q4 fiscal 2025, the defense and government consulting firm posted earnings per share of $1.61, falling just short of the $1.61 consensus estimate by 0.27%, while revenue of $2.97 billion trailed the $3.03 billion consensus by 1.96%, though it still represented 7.3% growth year-over-year. The standout driver behind the quarter was strength in Defense, where revenue climbed from $1.34 billion to $1.53 billion, offsetting modest gains in Intelligence and a flat Civil segment. Net income surged 50.8% to $193.00 million, aided by a $13.00 million investment gain and favorable tax comparisons. Looking ahead, the company guided fiscal 2026 revenue of $12.00 billion to $12.50 billion, reflecting 0-4% growth, a tempered outlook the company itself framed as resetting its business amid a shifting government spending environment.
- Strong demand for solutions, outcomes, and services across defense and intelligence markets
- Increase in headcount to meet demand
- Higher billable expenses
- Ongoing cost management efforts
- Favorable year-over-year tax comparisons due to prior-year discrete non-recurring state tax matters
- $13 million gain on sale of an investment in Q4 FY25
- Reduction to provision for claimed costs of $113 million in FY25
- $115 million in insurance recoveries in FY25
“Booz Allen delivered excellent performance in Fiscal Year 2025. We are using our leading positions in AI and the advanced technology ecosystem to accelerate the administration's priorities. Our technology works, and we continue to provide value and outcomes that matter to our nation.”
Booz Allen Hamilton CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2026, Booz Allen expects revenue of $12.0-$12.5 billion (0-4% YoY growth), Adjusted EBITDA of $1,315-$1,370 million (~11% margin), Adjusted Diluted EPS of $6.20-$6.55, and Free Cash Flow of $700-$800 million. Guidance assumes an adjusted effective tax rate of 23-25%, average diluted shares outstanding of 123-125 million, capital expenditures of approximately $110 million, and cash taxes related to Section 174 of approximately $80 million. The company described the outlook as 'resetting our business in a changing landscape.'
BAH YoY Financials
BAH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.