McLean, Virginia-based Booz Allen Hamilton Holding Corporation (NYSE: BAH) announced financial results for its third quarter of fiscal 2026 ended December 31, 2025.
Revenue totaled $2.6 billion, reflecting a 10.2% year-over-year decrease, which adjusts to an approximate 6.7% decline excluding the impact of a government shutdown in the prior-year period.
Revenue ex-billables declined 6.7% to $1.8 billion.
Net income increased 7% to $200 million, while adjusted net income rose 8.6% to $215 million.
Adjusted EBITDA was $285 million, representing a 10.9% margin on revenue, down 50 basis points year-over-year.
Adjusted diluted earnings per share climbed 14.2% to $1.77.
Free cash flow also improved significantly to $248 million from $134 million in the prior-year quarter.
Elsewhere, the company deployed $195 million in capital during the period and repurchased 1.1% of its outstanding shares.
The company also achieved a quarterly book-to-bill ratio of 0.3x and a trailing twelve-month ratio of 1.1x, with total backlog reaching a record $38 billion, up 1.5% from the prior quarter.