Booz Allen Hamilton has reported $2.6 billion in revenue, a 10.2 percent year-over-year decline, and a record backlog of $38 billion for the third quarter of fiscal year 2026.
The company said Friday that it is also adjusting its revenue guidance for the full 2026 to $11.3 billion to $11.4 billion, a slight decrease from its initial guidance of $11.3 billion to $11.5 billion.
What Did Booz Allen Hamilton’s Q3 FY2026 Financial Results Reveal?
According to Booz Allen’s financial report, the company’s Q3 revenue decline is caused, in part, by the government shutdown in late 2025. Excluding the impact of the government shutdown, the company’s Q3 2026 revenue declined by approximately 6 percent year-over-year.
Matthew Calderone, the company’s departing executive vice president and chief financial officer, explained during Booz Allen’s recent conference call that the shutdown “pushed some procurements and funding actions to the right,” and will have an estimated total impact of $50 million on revenue and $20 million on profit in the full fiscal year.
He also shared that, for the company’s national security portfolio, the shutdown moved $60 million in billable expenses from Q3 and Q4.
Booz Allen also reported adjusted EBITDA of $285 million, a 14.2 percent decrease, with a 10.9 percent margin on revenue. Meanwhile, its free cash flow also increased to $248 million compared to $134 million in the same period in fiscal 2025.
Which Segments Is Booz Allen Seeing Strong Demand In?
Horacio Rozanski, chairman, president and CEO of Booz Allen Hamilton and a three-time Wash100 winner, revealed during the company’s Q3 financial results conference call that its national security business continues to see growth, while the civil business “is beginning to reignite.” According to the executive, the pipeline for both national and civil businesses is up by double digits.
He also shared that Booz Allen’s artificial intelligence is also growing, while its cyber business’ growth is accelerating and its defense tech business is continuing to perform well.
“We remain focused on building and delivering tech that works for the most important U.S. Missions,” Rozanski stated. “We continue to invest and accelerate our growth strategy as we position for the future.”
