BAH

Booz Allen Hamilton is an advanced-technology and consulting firm serving the U.S. federal government, with ~31,500 employees building tech across defense, intelligence and civilian agencies. FY2026 broke a multi-year growth streak: revenue fell 6.4% to $11.2B (from $11.98B), operating income dropped 24.6% to $1.03B, and net income declined 9.0% to $851M — a clear sign of federal budget pressure on contract awards and pacing. The market reaction (down 6.67% on the day) reflects that concern.

Despite the top-line softness, the business remains a cash machine and the per-share picture held up better than the headline: diluted EPS fell only 4.8% to $6.90, cushioned by a 3.6% reduction in shares from $598M of buybacks. Operating cash flow actually rose 3.2% to $1.04B against just $90M of capex, and the company returned cash through both buybacks and a growing dividend ($276M, +3.0%). One caveat on earnings quality: FY2026 net income was flattered by an unusually low income-tax expense ($11M vs $284M the prior year), so normalized net income is somewhat lower than reported.