Booz Allen Hamilton reported a decline in revenue for the third quarter of fiscal 2026, attributed partly to a government shutdown, but demonstrated strong profitability with increased Adjusted Diluted EPS and free cash flow. The company is focused on disciplined execution and strategic investments in technology for U.S. missions.
Adjusted Diluted EPS rose 14.2% to $1.77.
positiveFree cash flow increased significantly to $248 million, up 85.1% year-over-year.
positiveTotal backlog reached a record $38 billion, a 1.5% increase.
positiveNet Income increased 7.0% to $200 million.
positiveRevenue declined 10.2% year-over-year to $2.6 billion, or 6.7% excluding billable expenses.
negativeAdjusted EBITDA decreased by 14.2% to $285 million, and the Adjusted EBITDA Margin on Revenue decreased by 50 basis points to 10.9%.
negativeThe quarterly book-to-bill ratio was 0.3x, indicating lower new bookings relative to revenue recognized in the quarter.
attentionHeadcount decreased by approximately 4,300 employees year-over-year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Defense | $1454000.0B | $1453000.0B | +0.1% | 55.5% |
Civil | $732000.0B | $1012000.0B | -27.7% | 27.9% |
Intelligence | $434000.0B | $452000.0B | -4.0% | 16.6% |
| Total Revenue | $2620000.0B | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Booz Allen’s third quarter results are on track and reflect disciplined execution in a dynamic environment.
We remain focused on building and delivering tech that works for the most important U.S. missions.
We continue to invest and accelerate our growth strategy as we position for the future.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.