Booz Allen Hamilton Holding Corp - Class A
Q4 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.52%.
Did BAH Beat Earnings? Q4 2026 Results
Booz Allen Hamilton posted a sharply mixed set of fourth-quarter fiscal 2026 results, delivering a significant earnings beat while falling short on revenue. Adjusted diluted EPS came in at $1.78, clearing the $1.34 consensus estimate by 33.07%, as lower income tax expense, a gain on the sale of contracts, and a reduced share count all lifted profitability despite a softer top line. Revenue of $2.78 billion missed the $2.87 billion consensus by 2.88% and fell 6.4% year-over-year, with the Civil segment bearing the heaviest burden as constrained government funding curtailed headcount and billable activity. The National Security portfolio offered a partial offset, with Intelligence revenue climbing to $499.00 million from $458.00 million a year ago. Record backlog of $38.19 billion and a 1.1x book-to-bill ratio point to sustained demand, and management guided fiscal 2027 revenue of $11.20 to $11.70 billion alongside adjusted EPS of $6.00 to $6.35, with cyber and defense technology identified as the primary growth vectors.
- Strong contract execution and disciplined cost management drove margin expansion
- Lower income tax expense from favorable IRS agreement releasing $86 million in tax reserves
- Reduced share count from share repurchases contributed to double-digit EPS growth
- Continued growth in National Security portfolio (Defense and Intelligence)
- Billing efficiencies and strong collections supported robust free cash flow
- Unrealized investment gains contributed to earnings
“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. We're investing in proven growth areas and building tech to create long-term value for our shareholders and our nation.”
Booz Allen Hamilton CEO, on the earnings call
Forward Guidance & Outlook
For FY27, Booz Allen expects revenue of $11.2–$11.7 billion (0–4% YoY growth), adjusted EBITDA of $1,240–$1,290 million with margin of approximately 11%, adjusted diluted EPS of $6.00–$6.35, and free cash flow of $825–$925 million. Guidance assumes an effective tax rate of 20–23%, average diluted shares outstanding of 118–120 million, and capital expenditures of approximately $220 million ($105 million related to a new headquarters). The company expects continued growth in the National Security portfolio while external factors are anticipated to drive Civil business declines. Demand is described as accelerating across portfolios with cyber and defense tech identified as strong growth vectors.
BAH YoY Financials
BAH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.