Booz Allen Hamilton reported $2.9 billion in revenue for the first quarter of fiscal year 2026.
In an earnings release published Friday, the McLean, Virginia-based IT company said its revenue saw a slight dip of 0.6 percent year-over-year. However, the adjusted net income increased by 2.2 percent from the previous year.
Meeting Company Expectations
Horacio Rozanski, Booz Allen chairman, CEO and president, emphasized the recent results, particularly the top and bottom-line performance, align with the company’s expectations.
“Our first quarter delivered as expected. Booz Allen is winning work that enables us to bring tech into the administration’s mission priorities. We are accelerating our investments and partnerships across the tech ecosystem to continue delivering for our nation,” the three-time Wash100 Award winner said.
Defense & Intel Performance, Booz Allen Ventures Investment
The company also anticipates a strong performance in its defense and intel businesses. Matthew Calderone, executive vice president and chief financial officer, reported a seven percent and six percent growth in defense and intel, respectively, offsetting the expected decline in civil business sales, which dipped to 13 percent compared to the prior year.
Furthermore, the company repurchased 1.1 percent of outstanding shares and recently allocated an additional $200 million in capital to Booz Allen Ventures, as part of efforts to enhance the talent base and advance mission-ready technology. The company aims to deploy the new investment to 20 to 25 new companies in the next five years.
Profitability, Contract Wins, Backlogs & Clash Flow
As for profitability, Booz Allen achieved $311 million in adjusted EBITDA, an increase of three percent from 2024. The adjusted EBITDA margin was 10.6 percent, up 30 basis points from the previous year. The adjusted diluted earnings per share, or EPS, are $1.48, up 7.2 percent.
The company also reported strong demand with a quarterly book-to-bill ratio of 1.42x and a backlog of $38 billion, up 10.7 percent year-over-year. This reflects significant contract wins worth $4.2 billion during the quarter, highlighted by two awards with a combined value of over $500 million. The company, in particular, secured a $315 million contract with the U.S. Air Force to provide a prototype of the Tactical Operations Center Light Battle Management System and a $51 million task order from the Customs and Border Protection.
As for the cash flow outlook, the company anticipates $200 million federal cash tax benefit this fiscal year as a result of The One Big Beautiful Bill. It also expects a refund of around $170 million next year from the Internal Revenue Service.
