Executive Summary
Booz Allen Hamilton Holding Corporation (BAH) reported its Q1 2026 results highlighting a robust net income growth of 64.01% year-over-year, reaching $271 million. Despite this positive trajectory in profitability, the company experienced a decline in revenue, which slipped to $2.924 billion, a 0.60% drop from the previous year. Management attributes this dip to a competitive consulting landscape and ongoing economic pressures but stresses a strong operational backbone supported by diversified service offerings in consulting and technology solutions. The results position Booz Allen Hamilton favorably as the firm continues to explore new market opportunities, particularly in AI and cybersecurity, despite margin contractions within its core operations.
Key Performance Indicators
Key Insights
**Revenue**: $2.924 billion (YoY: -0.60%, QoQ: -1.70%)
**Gross Profit**: $1.501 billion, yielding a gross profit margin of 51.33% (YoY: -4.43%, QoQ: -5.88%)
**Operating Income**: $257 million, maintaining an operating income margin of 8.79% (YoY: 0.72%, QoQ: -6.53%)
**Net Income**: $271 million, with a net income margin of 9.27% (YoY: +64.01%, QoQ: +40.63%)
**EPS**: $2.17, reflecting a 70.87% increase YoY and a 42.76% increase QoQ.
Management indicated that investments in AI and cyber ...
Financial Highlights
Revenue: $2.924 billion (YoY: -0.60%, QoQ: -1.70%)
Gross Profit: $1.501 billion, yielding a gross profit margin of 51.33% (YoY: -4.43%, QoQ: -5.88%)
Operating Income: $257 million, maintaining an operating income margin of 8.79% (YoY: 0.72%, QoQ: -6.53%)
Net Income: $271 million, with a net income margin of 9.27% (YoY: +64.01%, QoQ: +40.63%)
EPS: $2.17, reflecting a 70.87% increase YoY and a 42.76% increase QoQ.
Management indicated that investments in AI and cyber sectors are strategic focus areas that bolstered net income despite the revenue deceleration, indicating prudent cost management and a commitment to enhancing service capabilities.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.92B |
-0.60% |
-1.70% |
| Gross Profit |
1.50B |
-4.43% |
-5.88% |
| Operating Income |
257.00M |
0.72% |
-6.53% |
| Net Income |
271.00M |
64.01% |
40.63% |
| EPS |
2.17 |
70.87% |
42.76% |
Management Commentary
Management Insight on Market Position & Strategy:
CEO Horacio Rozanski emphasized, "Our growth in net income is a testament to our strategic investments and the quality of our service delivery in a challenging market environment. We remain committed to delivering value through innovation, especially in technology-driven solutions that promise greater efficiency for our clients."
Cost Management Commentary:
CFO Karen Dahut noted, "Although revenue has faced headwinds, our influence on controlling operating expenses has enabled us to achieve a favorable net profit outcome, positioning us to leverage scale in our operations further."
"Our ability to adapt and invest in new capabilities has directly contributed to our enhanced profitability this quarter," said CEO Horacio Rozanski.
â Horacio Rozanski
"Even amidst revenue challenges, we have maintained strong operational discipline, allowing us to achieve better net margins," stated CFO Karen Dahut.
â Karen Dahut
Forward Guidance
Booz Allen Hamilton's management provided a cautiously optimistic outlook for the remainder of 2026, indicating expected revenue stabilization as strategic initiatives in technology integration and digital transformation bear fruit. They aim for an adjusted revenue target growth of 3-5% year-over-year and a continued focus on margins through operational efficiencies. Key factors include the monitoring of federal government spending as it constitutes a significant portion of revenue and ongoing investments in emerging technologies.