On July 25, 2025, Booz Allen Hamilton announced its preliminary results for the first quarter of fiscal year 2026, ending June 30, 2025. Total revenue decreased 1% year-over-year to $2.924 billion, although revenue excluding billable expenses grew 2%. Operating income increased 1% to $257 million, maintaining a 9% operating margin.
Net income saw a significant 64% increase to $271 million, primarily driven by a one-time income tax benefit of $106 million from a favorable IRS agreement. Segment performance showed strength in Defense, up 7% to $1.517 billion, and Intelligence, up 6% to $484 million.
However, the Civil segment experienced a 13% year-over-year revenue decline to $923 million, a direct result of a company-initiated 'reset' and 'restructuring.' This decline was attributed to reduced run rates on five large civil technology contracts, creating an approximate 3% firm-wide revenue headwind, compounded by the conclusion of a large VA contract, adding another 3% headwind. The company reiterated its fiscal year 2026 outlook, anticipating lower revenue and profit growth in the first half, with a meaningful reacceleration in the second half, supported by a record backlog of $38.265 billion.
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