Booz Allen Hamilton (US:BAH)2026-01-23 13:00Financial Performance - Q3 FY26 - Revenue decreased by 10.2% to $2.6 billion, primarily due to a slowed procurement and funding environment, including the government shutdown[47] - Revenue excluding billable expenses decreased by 6.7% to $1.8 billion[13, 24] - Adjusted EBITDA decreased by 14.2% to $285 million, with adjusted EBITDA margins at 10.9%, a decrease of 50 bps[13, 24] - Adjusted Diluted EPS increased by 14.2% to $1.77, driven by profitability and tax benefits[13, 14] - Free Cash Flow increased by 85.1% to $248 million due to higher collections, lower payables, and lower tax payments[13, 47] Backlog and Book-to-Bill - Backlog increased by 2% year-over-year to $38 billion[14] - Quarterly book-to-bill was 0.3x, and LTM book-to-bill was 1.1x[14] Capital Deployment - $125 million was deployed in share repurchases during the third quarter, representing 1.1% of outstanding shares[16] - The board approved a quarterly dividend of $0.59 per share, a 7% increase[16] - A $400 million capital commitment was made for a partnership with Andreessen Horowitz (a16z)[16] FY26 Financial Outlook - Revenue is projected to be $11.3 - $11.4 billion, representing a decrease of 5.0 - 6.0%[18] - Adjusted EBITDA is expected to be $1,195 - $1,215 million, with adjusted EBITDA margin on revenue in the mid 10% range[18] - Adjusted Diluted EPS is projected to be $5.95 - $6.15[18] - Free Cash Flow is expected to be $825 - $900 million[18]