On May 23, 2025, Booz Allen Hamilton announced its fourth quarter and full fiscal year 2025 results, alongside its outlook for fiscal year 2026. For Q4 FY25, revenue was $2.97 billion, up 7.3% year-over-year, with adjusted EPS of $1.61, exceeding analyst estimates of $1.59. Full fiscal year 2025 revenue reached $12.0 billion, a 12% increase, and total backlog grew 15.3% to $37.03 billion.
However, the company's outlook for fiscal year 2026 projected revenue between $12 billion and $12.5 billion, adjusted EBITDA between $1.315 billion and $1.37 billion, and adjusted EPS between $6.20 and $6.55 per share. This guidance fell below Wall Street expectations, leading to investor concern.
In response to reduced federal spending, particularly impacting its Civil business, Booz Allen plans to cut approximately 2,500 jobs, representing 7% of its workforce. The company anticipates lower revenue and profit growth in the first half of fiscal year 2026 due to the Civil sector reset and strong prior-year comparisons, with a projected reacceleration in the second half. Free cash flow for FY26 is expected to be between $900 million and $1 billion, benefiting from a $200 million federal cash tax benefit and an anticipated $170 million cash refund in FY27.
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