How did Booz Allen Hamilton (NYSE:BAH) perform in Q4 FY2026?

Booz Allen reported revenue of $2.8 billion for Q4 FY2026, down 6.4% year-over-year, but net income rose 6.2% to $205 million, reflecting stronger operational efficiency and cost management.

What drove the divergence between revenue and profitability?

The company improved margins and operational efficiency, with adjusted EBITDA margin expanding 50 basis points to 11.1%, offsetting the revenue decline caused by reduced billable expenses.

How did adjusted earnings perform?

Adjusted net income rose 5.9% to $215 million, while adjusted diluted EPS climbed 10.6% to $1.78, indicating strong earnings per share growth despite top-line pressure.

How did free cash flow trend?

Free cash flow accelerated to $212 million from $194 million a year earlier, supporting balance sheet flexibility and potential shareholder returns.

What happened to adjusted EBITDA?

Adjusted EBITDA fell slightly by 2.2% to $309 million, but margin expansion demonstrates improved operational leverage.

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Booz Allen net income rises to $205M despite revenue contraction

Written by Brie CarterPublished May. 22 2026Last Updated May. 22 2026

Booz Allen Hamilton Holding (NYSE:BAH) announced its preliminary financial results for the fourth quarter of fiscal year 2026, delivering an uptick in profitability and backlog expansion despite a contraction in top-line revenue.

The advanced technology and government consulting firm reported fourth-quarter revenue of $2.8 billion, representing a 6.4% decrease compared to the same period in the prior fiscal year.

Revenue excluding billable expenses experienced a similar downward trajectory, falling 6.8% year-over-year to $1.9 billion.

Despite the revenue headwinds, the company's profitability metrics proved resilient.

Net income rose 6.2% to $205 million, up from the prior-year quarter.

Adjusted net income advanced 5.9% to $215 million, while adjusted diluted earnings per share posted a double-digit gain, climbing 10.6% to $1.78 per share.

The divergence between declining revenue and climbing net profits was partially reflected in operational efficiency.

While adjusted EBITDA slipped 2.2% to $309 million, the company's adjusted EBITDA margin on revenue expanded by 50 basis points to reach 11.1%.

Free cash flow generation also accelerated during the quarter, coming in at $212 million compared to $194 million in the corresponding period last year.

Booz Allen posted a quarterly book-to-bill ratio of 0.9x, while its total contract backlog expanded by 3.1% year-over-year to reach $38 billion, providing structural visibility for upcoming fiscal periods.