Demand is heating up overall, but Booz Allen’s profits and revenue are still declining
Special topic: Focus on the second quarter financial report of US stocks in 2026 Booz Allen says demand for national security-related business segments is growing faster The Booz Allen Hamilton Building in Los Angeles has a white building with white branding. Booz Allen Hamilton's revenue and profits fell in the first quarter of its fiscal year. Booz Allen Hamilton's first-quarter revenue and profits fell year-on-year, but its full-year performance guidance remained unchanged; the company said demand growth in some business segments accelerated. Booz Allen Hamilton (stock code BAH, down 0.39%) disclosed that revenue and profits in the first quarter of the fiscal year fell year-on-year, but the company stuck to its full-year performance expectations and said that many business needs are experiencing accelerated growth. The company reported on Friday first-quarter net income of $198 million, or $1.63 per share, compared with net income of $271 million, or $2.16 per share, in the same period last year. Excluding one-time gains and losses, adjusted earnings per share were $1.81. Analysts compiled by FactSet expected adjusted earnings of $1.48 per share, and the actual performance beat expectations. Total revenue fell 4.2% year over year to $2.8 billion, slightly below Wall Street expectations of $2.81 billion. Booz Allen said that demand for the full range of national security businesses is growing faster, and the company is therefore focusing on high-end network security, defense technology and native artificial intelligence products; its business in the civilian field is still under pressure. Booz Allen laid off thousands of jobs last year due to shrinking government contracts in the civil sector. The Trump administration has cut spending on federal contracts and specifically required consulting companies, including Booz Allen, to demonstrate the value of their work and come up with large-scale cost reduction plans. In previous years, 98% of the company's annual revenue of $12 billion came from government-related businesses. The company announced in October that it was reorganizing its business and planned to cut costs by $150 million. As of June 30, Booz Allen's overall backlog of orders reached US$39.48 billion, a year-on-year increase of 3.2%; the total number of employees was approximately 30,900, a year-on-year decrease of 7.5%. Looking forward to the market outlook, CEO Horacio Rozanski said that despite the challenging market environment, the company is still on track to achieve its full-year performance targets. Booz Allen maintained full-year guidance: adjusted earnings per share of $6 to $6.35, and full-year revenue in the range of $11.2 billion to $11.7 billion. Analysts had expected full-year adjusted earnings of $6.26 per share on revenue of $11.42 billion.