Booz Allen Hamilton

BAH Q1 2026 Earnings

Reported Jul 25, 2025 at 6:47 AM ET · SEC Source

Q1 26 EPS

$1.48

BEAT +2.09%

Est. $1.45

Q1 26 Revenue

$2.92B

MISS 0.78%

Est. $2.95B

vs S&P Since Q1 26

-40.6%

TRAILING MARKET

BAH -27.5% vs S&P +13.1%

Market Reaction

Did BAH Beat Earnings? Q1 2026 Results

Booz Allen Hamilton delivered a modest beat on the bottom line in Q1 fiscal 2026, with adjusted diluted EPS of $1.48 topping the $1.45 consensus estimate by 2.09%, even as revenue of $2.92 billion came in 0.78% below expectations and slipped 0.6% yea… Read more Booz Allen Hamilton delivered a modest beat on the bottom line in Q1 fiscal 2026, with adjusted diluted EPS of $1.48 topping the $1.45 consensus estimate by 2.09%, even as revenue of $2.92 billion came in 0.78% below expectations and slipped 0.6% year-over-year. The headline story, however, was a one-time $106 million IRS tax benefit tied to prior-year strategic tax planning, which propelled GAAP net income 64.2% higher to $271 million, though the underlying adjusted business grew at a more measured pace, with Adjusted Net Income up just 2.2%. Operationally, defense revenue climbed to $1.52 billion and intelligence revenue rose to $484 million, offsetting a civil segment decline tied to ongoing restructuring. A record Q1 backlog of $38.27 billion, up 10.7% year-over-year, and a 1.42x book-to-bill ratio point to sustained demand ahead. Management reaffirmed full-year revenue guidance of $12.00 to $12.50 billion while raising its free cash flow outlook by $200 million to a range of $900 million to $1.00 billion, citing anticipated tax benefits from new federal legislation.

Key Takeaways

  • Strong performance across defense and intelligence markets
  • Revenue excluding billable expenses grew 2.3% driven by higher-margin labor-based work
  • Ongoing cost management efforts improving Adjusted EBITDA margin by 30 basis points
  • One-time $106 million income tax benefit from favorable IRS agreement on prior-year tax planning initiatives
  • Strong collection performance driving improved operating cash flow
  • Lower compensation disbursements contributing to cash flow improvement
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BAH YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

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BAH Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 25 Q3 26

“Our first quarter delivered as expected. Booz Allen is winning work that enables us to bring tech into the administration's mission priorities.”

— Horacio Rozanski, Q1 2026 Earnings Press Release