The Pentagon’s AI Pivot Supercharges Defense Stocks Booz Allen Hamilton (NYSE:BAH) executives said the government technology contractor exited what Chief Executive Horacio Rozanski called its “most challenging year” as a public company with stronger profitability than expected,…
en as revenue declined because of weakness in its civil business. On the company’s fiscal fourth-quarter 2026 earnings call, Rozanski said Booz Allen faced “unprecedented headwinds” in civil work and significant changes across its markets, but responded through cost discipline, contract execution and continued investment in cyber, defense technology and artificial intelligence
He said the company is entering fiscal 2027 with “both momentum and focus,” while acknowledging continued uncertainty as federal customers adjust procurement approaches. – Catching Falling Knives: Is It Time to Buy These Beaten-Down Stocks? “Despite declining revenue, profitability exceeded our revised expectations,” Rozanski said. “What’s particularly notable is that we delivered this bottom-line performance while continuing to invest for future growth.” Revenue Declines, But Profitability Tops Expectations Chief Financial Officer Troy Lahr, who joined Booz Allen earlier this month, said fiscal 2026 gross revenue was $11.2 billion, with the year-over-year decline driven by the company’s civil business. Adjusted EBITDA was $1.2 billion, with an adjusted margin of 11%, and adjusted diluted earnings per share were $6.51. Free cash flow totaled $951 million. – Booz Allen Hamilton Earnings: 3 Bullish Signals for BAH Stock For the fourth quarter, revenue declined 6.4% year over year to $2.8 billion.
Revenue excluding billable expenses fell approximately 7% from the prior-year period. Lahr said the national security portfolio grew 1.6% year over year in the quarter, supported by demand for intelligence work and partially offset by lower billable expenses for defense customers. Civil revenue declined 23% year over year,…