BAH Filings — Booz Allen Hamilton Holding Corporation - FilingSpy
BAH
Booz Allen Hamilton Holding Corporation
A technology company that builds cybersecurity, artificial intelligence, and defense products for the U.S. federal government, serving defense, intelligence, and civil agencies. Founded in 1914 in Chicago by Edwin Booz as the Business Research Service, it later took its name from partners Booz, Allen, and Hamilton. It's considered one of the pioneers of the management consulting profession, and its founder was drafted into the U.S. Army during World War I.
Booz Allen's Q1 revenue fell 6.5% to $2.78B, but operating margin widened to 9.5% as cost cuts took hold.
contracted for the fourth straight quarter, but profitability improved. Revenue fell 6.5% to $2.78 billion as a slowed federal procurement environment continued to weigh on headcount and billable expenses, while widened 0.2 points to 9.5% and rose 11.4% to $1.68, aided by cost-reduction actions and a lower tax rate. The company is shrinking more slowly and earning more from each dollar of revenue, but the top line has yet to find a floor.
Key takeaways
fell 6.5% to $2.78 billion, the fourth consecutive quarterly decline, as a slowed U.S. government procurement environment reduced headcount and billable expenses.
declined 4.4% to $263 million, but widened 0.2 points to 9.5% because cost of and general and administrative expenses each fell 6%, outpacing the revenue decline.
rose 6.2% to $205 million and rose 11.4% to $1.68, as a lower more than offset the decline in .
Section summaries
Management's Discussion and Analysis
Revenue fell 4% to $2.8B on slowed procurement, but operating income rose 9% to $279M on lower costs and a 10% margin.
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decreased 4% to $2,800 million, driven by slowed procurement that reduced headcount and .
increased 9% to $279 million, with improving from 9% to 10%, as cost of fell 6% and G&A fell 6%.
Total grew 3% to $39.5 billion, with up 15% to $4.7 billion, though management noted the slowed procurement environment continues to affect backlog conversion.
rose 9.6% to $240 million, driven by management and lower tax payments, while rose 9.3% to $212 million.
The company announced a definitive agreement to acquire Ultra Mission Solutions for $720 million, expected to close in Q2 FY2027, and completed the acquisition of Defy Security.
What changed
The $150 million annual cost-reduction plan flagged in prior quarters is showing in the numbers: cost of fell 6% and G&A fell 6%, allowing to widen to 9.5% from 9.2% in the prior quarter and 9.3% a year ago, even as revenue continued to decline.
declined 6.5% , an improvement from the 10% drop in Q3 FY2026 and the 8% drop in Q2 FY2026, suggesting the pace of contraction may be slowing.
rose 15% to $4.7 billion, a reversal from the decline to $4.0 billion reported in Q1 FY2026, which may signal that near-term contract awards are beginning to recover even as total conversion remains slow.
The $248 million liability for estimated adjustments to claimed indirect costs under the DCAA audit, flagged across multiple prior filings, remains unresolved with no material change disclosed this quarter.
What to watch
Whether the $720 million Ultra Mission Solutions acquisition closes in Q2 FY2027 as expected and what it contributes to and in the second half of the fiscal year.
Whether the 15% increase in to $4.7 billion translates into stabilization or growth in coming quarters, or whether the slowed procurement environment continues to depress conversion rates.
Whether the cost-reduction plan sustains the 9.5% or whether further declines erode it, particularly given that severance and restructuring charges may continue.
Resolution of the $248 million liability for estimated adjustments to claimed indirect costs under the DCAA audit, which remains an unquantified potential cash and earnings impact.
declined 27% to $198 million, primarily due to a $108 million swing in income tax expense from a prior-year benefit to a current-year expense.
Total grew 3% to $39.5 billion, with funded backlog up 15% to $4.7 billion, though the company notes slowed procurement is negatively affecting backlog conversion.
more than doubled to $281 million, driven by strong management and lower tax payments.
The company announced a definitive agreement to acquire Ultra Mission Solutions for $720 million, expected to close in Q2 FY2027, and completed the acquisition of Defy Security.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes during the period covered by this Quarterly Report on Form 10-Q to the information disclosed in the Quantitative and Qualitative Disclosures About Market Risk section in Part II, “Item 7. Management’s Discussion and Analysis of Financial Condi…
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There have been no material changes during the period covered by this Quarterly Report on Form 10-Q to the information disclosed in the Quantitative and Qualitative Disclosures About Market Risk section in Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended March 31, 2026 filed with the Securities and Exchange Commission on May 22, 2026.
Disclosure concerning legal proceedings can be found in Part I, Item 1. “Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 11, “Commitments and Contingencies,” under the caption, “Litigation,” which is incorporated here by this reference.
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Disclosure concerning legal proceedings can be found in Part I, Item 1. “Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 11, “Commitments and Contingencies,” under the caption, “Litigation,” which is incorporated here by this reference.
There have been no material changes during the period covered by this Quarterly Report on Form 10-Q to the risk factors disclosed in Part I, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended March 31, 2026 filed with the Securities and Exchange Commission on M…
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There have been no material changes during the period covered by this Quarterly Report on Form 10-Q to the risk factors disclosed in Part I, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended March 31, 2026 filed with the Securities and Exchange Commission on May 22, 2026.