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Dec 31, 2025
Booz Allen Q3 2026 Earnings Report
Booz Allen reported stable Q3 2026 performance with strong execution, disciplined cost control, and improved earnings per share.
Key Takeaways
Revenue declined due to a slow funding environment and the government shutdown, but profitability improved and demand remained strong in key sectors.
Revenue declined 10.2% year-over-year due to a government shutdown and slower procurement.
Adjusted EPS increased to $1.77, supported by tax benefits and cost controls.
Net income rose to $200M driven by lower tax expenses and strong execution.
Free cash flow reached $248M despite operational headwinds.
Forward Guidance
Booz Allen expects lower revenue growth for FY26, but improved EPS and profitability driven by tax benefits and operational efficiency.
Positive Outlook
- Adjusted EPS guidance raised to $5.95–$6.15
- Tax benefits provide $235M boost
- Adjusted EBITDA guidance slightly increased
- Strong demand across National Security missions
- Partnership with a16z expected to drive future innovation
Challenges Ahead
- FY26 revenue growth revised down to (5.0–6.0)%
- Prolonged government shutdown impacted operations
- Slow funding environment affecting hiring and ramp-ups
- Free cash flow guidance slightly reduced
- Macroeconomic uncertainty continues to weigh on contract timing
Historical Earnings Impact
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Avg. Return Before/After Earnings
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