Booz Allen Hamilton Holding Corp - Class A
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.27%.
Did BAH Beat Earnings? Q1 2026 Results
Booz Allen Hamilton delivered a modest beat on the bottom line in Q1 fiscal 2026, with adjusted diluted EPS of $1.48 topping the $1.45 consensus estimate by 2.09%, even as revenue of $2.92 billion came in 0.78% below expectations and slipped 0.6% year-over-year. The headline story, however, was a one-time $106 million IRS tax benefit tied to prior-year strategic tax planning, which propelled GAAP net income 64.2% higher to $271 million, though the underlying adjusted business grew at a more measured pace, with Adjusted Net Income up just 2.2%. Operationally, defense revenue climbed to $1.52 billion and intelligence revenue rose to $484 million, offsetting a civil segment decline tied to ongoing restructuring. A record Q1 backlog of $38.27 billion, up 10.7% year-over-year, and a 1.42x book-to-bill ratio point to sustained demand ahead. Management reaffirmed full-year revenue guidance of $12.00 to $12.50 billion while raising its free cash flow outlook by $200 million to a range of $900 million to $1.00 billion, citing anticipated tax benefits from new federal legislation.
- Strong performance across defense and intelligence markets
- Revenue excluding billable expenses grew 2.3% driven by higher-margin labor-based work
- Ongoing cost management efforts improving Adjusted EBITDA margin by 30 basis points
- One-time $106 million income tax benefit from favorable IRS agreement on prior-year tax planning initiatives
- Strong collection performance driving improved operating cash flow
- Lower compensation disbursements contributing to cash flow improvement
“Our first quarter delivered as expected. Booz Allen is winning work that enables us to bring tech into the administration's mission priorities.”
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 with margins of approximately 11%; Adjusted Diluted EPS of $6.20–$6.55; Free Cash Flow of $900–$1,000 million (increased by $200 million versus prior guidance due to anticipated federal cash tax benefit from new Section 174 rules under the One Big Beautiful Bill). Guidance assumes an adjusted effective tax rate of 23–25%, average diluted shares outstanding of 123–125 million, and capital expenditures of approximately $110 million.
BAH YoY Financials
BAH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.