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

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.