"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."
— Horacio Rozanski
03Detailed Report
BAH
Booz Allen Hamilton Holding Corporation
Period
Q4 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 29, 2026
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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
Revenue
Increasing
2.97B
QoQ: 1.97% | YoY: 7.34%
Gross Profit
Increasing
1.59B
53.61% margin
QoQ: -1.04% | YoY: 5.21%
Operating Income
Increasing
274.97M
QoQ: -5.59% | YoY: 3.98%
Net Income
Increasing
192.71M
QoQ: 3.08% | YoY: 50.60%
EPS
Increasing
1.52
QoQ: 4.11% | YoY: 53.54%
Revenue Trend
Margin Analysis
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%
Key Financial Ratios
Gross Profit Margin
Weak
1.00%
Gross profit margin is below industry norms, profitability concerns
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