Executive Summary
In Q4 2025, Booz Allen Hamilton Holding Corporation (BAH) reported revenue of $2.974 billion, marking a year-over-year growth of 7.34%. The significant advancement in the defense and intelligence sectors was complemented by an adjusted EBITDA of $1.315 billion, showcasing a 12% organic growth trajectory that exceeded expectations set during the 2021 investor day. However, challenges in the civil segment indicate potential volatility moving into fiscal year 2026, prompting a restructuring within the civil business to align with anticipated spending reductions. Management emphasized confidence in the long-term growth opportunities driven by technology injected into government contracts, especially in AI and digital transformation, essential across defense operations. The second half of FY 2026 is expected to catalyze recovery, bolstered by a solid pipeline and strategic hires.
Key Performance Indicators
Key Insights
**Revenue**: $2.974 billion (YoY growth: 7.34%, QoQ: 1.97%)
**Operating Income**: $275 million (YoY growth: 3.98%, QoQ: -5.59%)
**Net Income**: $193 million (YoY growth: 50.60%, QoQ: 3.08%)
**EBITDA**: $331 million, EBITDA Margin: 11.1%
**EPS**: $1.52 (YoY growth: 53.54%, QoQ: 4.11%)
**Free Cash Flow**: $194 million
**Debt**: $3.1 billion, Net Leverage Ratio: 2.4x
**Backlog**: Record backlog of $37 billion, QoQ growth of 15%....
Financial Highlights
Revenue: $2.974 billion (YoY growth: 7.34%, QoQ: 1.97%)
Operating Income: $275 million (YoY growth: 3.98%, QoQ: -5.59%)
Net Income: $193 million (YoY growth: 50.60%, QoQ: 3.08%)
EBITDA: $331 million, EBITDA Margin: 11.1%
EPS: $1.52 (YoY growth: 53.54%, QoQ: 4.11%)
Free Cash Flow: $194 million
Debt: $3.1 billion, Net Leverage Ratio: 2.4x
Backlog: Record backlog of $37 billion, QoQ growth of 15%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.97B |
7.34% |
1.97% |
| Gross Profit |
1.59B |
5.21% |
-1.04% |
| Operating Income |
274.97M |
3.98% |
-5.59% |
| Net Income |
192.71M |
50.60% |
3.08% |
| EPS |
1.52 |
53.54% |
4.11% |
Management Commentary
Management highlights from the earnings call reflect a resilient business strategy and adaptability in an evolving market landscape.
- Horacio Rozanski stated, "Booz Allen Hamilton delivered strong year-over-year growth as we embraced shifts in agency missions... the federal government is rethinking how it accomplishes its goals, and we are positioned to support those changes effectively."
- Matt Calderone added, "We see an acceleration of AI implementation across government operations... our AI business grew over 30% year-over-year to approximately $800 million."
These comments underscore Booz Allen's proactive approach in mitigating challenges in civil contracts, while simultaneously capitalizing on growth opportunities in high-demand sectors like defense.
"All presidential transitions create some degree of near-term disruption followed by opportunity... our current environment is indeed in play at a speed that is beyond what we originally expected."
â Horacio Rozanski
"We understand our customer's mission needs... that gives me great confidence in Booz Allen Hamilton's ability to maximize the opportunities ahead."
â Horacio Rozanski
Forward Guidance
Looking ahead to FY 2026, Booz Allen Hamilton anticipates FY revenue between $12 billion and $12.5 billion, with an adjusted EBITDA of $1.315 billion to $1.37 billion, projecting a consistent adjusted EBITDA margin of 11%. The management has articulated an expectation for initial revenue pressures, particularly in the civil segment, suggesting a low double-digit decline, but is optimistic for a rebound in the latter half due to a solid backlog and strategic investment capabilities.