Booz Allen beats earnings estimates, but revenue miss and year-over-year decline pressure investor sentiment.
Stock Earnings Results
May 22, 2026
Table of Contents
May 22, 2026
Booz Allen Hamilton Holding Corporation (NYSE: BAH) reported fourth-quarter fiscal 2026 results with earnings above expectations, but shares came under pressure after revenue missed estimates and declined year-over-year.
Booz Allen Hamilton is a management, technology, cyber, analytics, and defense consulting company that serves U.S. government, defense, intelligence, civil, and commercial clients.
The company reported adjusted EPS of $1.78, above estimates of $1.32, representing a 34.8% earnings surprise. Revenue came in at $2.78 billion, below estimates of $2.88 billion, with revenue down 6.4%.
Booz Allen reported fourth-quarter revenue of $2.8 billion, down 6.4% year-over-year.
For the full fiscal year, revenue was $11.2 billion, also down 6.4% from the prior year.
Adjusted diluted EPS came in at $1.78 for the quarter, up 6.6% year-over-year.
For the full fiscal year, adjusted diluted EPS was $7.32, down 6.5% from fiscal 2025.
Net income for the quarter was $205 million, up 5.9% year-over-year.
Adjusted EBITDA was $309 million, up 2.2% from the prior-year quarter. Adjusted EBITDA margin improved 90 basis points to 11.1%.
Booz Allen reported fourth-quarter free cash flow of $212 million, compared with $194 million in the prior year.
For the full fiscal year, free cash flow was $951 million, compared with $951 million in the prior year, showing stable cash generation despite lower revenue.
Total backlog was $38 billion, up 3.1% from the prior year.
The large backlog gives Booz Allen revenue visibility, even as the company works through demand and portfolio shifts.
Booz Allen said demand accelerated across its portfolios, with expected continued growth in its National Security portfolio.
The company also said it expects near-term factors to drive anticipated civil business declines. Management highlighted record Q4 backlog of $38 billion and continued focus on advanced cyber and defense technologies.
Booz Allen returned $1.1 billion to shareholders through capital deployment.
The company also declared a regular quarterly dividend of $0.59 per share, payable on June 26, 2026, to stockholders of record on June 10, 2026.
Investors are likely to watch whether Booz Allen can return to revenue growth while maintaining margin discipline.
The key areas are:
Booz Allen’s quarter was mixed.
The company beat earnings expectations, improved quarterly margins, generated solid free cash flow, and ended with a large backlog. But the revenue miss and year-over-year revenue decline likely drove the negative stock reaction.
The next test is whether Booz Allen can convert its $38 billion backlog into stronger revenue growth while offsetting civil portfolio weakness.
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