Booz Allen Hamilton Reports Slight Revenue Decline but 64% Increase in Net Income for Q1 Fiscal 2026

Booz Allen Hamilton Holding Corporation reported its financial results for the first quarter of fiscal 2026, ending June 30, 2025, revealing a slight decline in revenue but a significant increase in net income. The company generated revenue of $2.924 billion, a decrease of 1% compared to $2.942 billion in the same period last year. Operating income rose marginally to $257 million, up from $255 million, while net income surged 64% to $271 million, compared to $165 million in the prior year. This increase in profitability was reflected in earnings per share, which rose to $2.17 from $1.27.

The company experienced notable changes in its operational metrics. Total operating costs and expenses decreased by 1% to $2.667 billion, primarily due to a reduction in billable expenses, which fell by 7% to $881 million. However, costs of revenue increased by 4% to $1.423 billion, driven by higher salaries and benefits. The company also reported a decrease in cash and cash equivalents, which stood at $711 million at the end of the quarter, down from $885 million at the end of the previous fiscal year.

Booz Allen Hamilton's strategic developments included a focus on enhancing its technology solutions, particularly in artificial intelligence and cybersecurity, to support its federal government clients. The company reported a total employee count of approximately 33,400 as of June 30, 2025. Additionally, the company’s backlog increased by 10.7% year-over-year, reaching $38.265 billion, with funded backlog at $4.047 billion and unfunded backlog at $10.441 billion. The company expects to recognize approximately 65% of its remaining performance obligations as revenue over the next 12 months.

The filing also highlighted the company's ongoing commitment to shareholder returns, with a quarterly cash dividend of $0.55 per share declared, totaling $70 million. Share repurchases during the quarter amounted to $154 million, reflecting the company's strategy to return value to shareholders while managing its capital structure. The company had approximately $591 million remaining under its share repurchase program as of June 30, 2025.

Looking ahead, Booz Allen Hamilton expressed cautious optimism regarding its future performance, acknowledging the uncertain political and regulatory environment affecting U.S. government spending. The company emphasized its focus on aligning its offerings with government priorities and managing operational efficiencies to navigate potential challenges. Despite the current economic landscape, Booz Allen Hamilton remains committed to leveraging its technological capabilities to drive growth and support critical missions for its clients.