Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Fortune 500

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

America's Most Innovative Companies

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

World's Most Admired Companies

Industries included in the sector are computers, internet services, IT services, semiconductors, and software companies.

Fortune Sector Leaders: Technology

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

The 300 companies on this list are transforming industries from the inside out.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

This year’s Fortune 500 marks the 68th running of the list.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-391-Booz Allen Hamilton Holding

The international consulting firm, founded in 1914, works with clients in varying capacities across industries including national security, health, and cybersecurity.

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune 500 marks the 66th running of the list.

The government contractor provides management and technology consulting to defense, intelligence, and civil service agencies.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Sector

Industry

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Culture rank

Process rank

Product rank

Years on list

Previous rank

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Booz Allen Hamilton provides management and technology consulting, as well as analytics, engineering, digital solutions, mission operations, and cyber and cybersecurity services to governments, corporations, as well as not-for-profit organizations in the United States and internationally. Founded in 1914, the consulting firm is headquartered in McLean, Va.

Q1 2026

Q4 2025

Q3 2025

Booz Allen Hamilton Holding (BAH): Company Profile, Stock Price, News, Rankings

legacy

Booz Allen Hamilton Holding

booz allen hamilton holding

Good morning and thank you for standing by. Welcome to the Booth Allen Hamilton's Earnings Call covering First Quarter Fiscal Year twenty twenty six Results. At this time, all participants are in a listen only mode. Later, there will be an opportunity for questions. I'd now like to turn the call over to the Head of Investor Relations, Dustin Tharensberg.

Thank you. Good morning, and thank you for joining us for Booz Allen's first quarter fiscal year twenty twenty six earnings call. We hope you've had an opportunity to read the press release we issued earlier this morning. We have also provided presentation slides on our website and are now on slide two. With me today to talk about our business and financial results are Horacio Rozanski, our Chairman, Chief Executive Officer and President Matt Calderon, Executive Vice President and Chief Financial Officer and Christine Martin Anderson, Executive Vice President and Chief Operating Officer.

As shown in the disclaimer on Slide three, please note that we may make forward looking statements on today's call, which involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from the forecasted results discussed in our SEC filings and on this call. All forward looking statements are expressly qualified in their entirety by the foregoing cautionary statements and speak only as of the date made. Except as required by law, we undertake no obligation to update or revise publicly any forward looking statements. During today's call, we will also discuss some non GAAP financial measures and other metrics, which we believe provide useful information for investors. We include an explanation of adjustments and other reconciliations of our non GAAP measures to the most comparable GAAP measures in our first quarter fiscal year twenty twenty six earnings release and slides.

Numbers presented may be rounded and, as such, may vary slightly from those in our public disclosures. It It is now my pleasure to turn the call over to our chairman, CEO, and president Hirasiya Rozanski. We're now on slide four.

Thank you, Dustin. Welcome, everyone, and thank you for joining the call. Today, Christine, Matt, and

I will share our financial results for the first quarter of fiscal year twenty twenty six. The headline for today is that our first quarter performance played out as we expected. Matt will go deeper into our first quarter results in a few minutes. Ahead of that, I would like to frame our results in the context of the current environment and describe how we are accelerating our transformation to take advantage of the next inflection point. As I've said previously, all presidential transitions create some degree of near term disruption followed by opportunity.

The administration is driving fast change, and six months in, the government is still adapting. Agencies are realigning their priorities and, in many cases, restructuring their own operations. We see overall demand strengthening, but near term funding continues to move slowly through the procurement environment. While the overall tenure is more positive than it was weeks ago, this adjustment period is still underway, and some uncertainty remains as submissions and contracts are still being reviewed. Our quarterly results reflect these dynamics.

Top and bottom line performance matched our expectations, with the brightest spots being book to bill and the resulting record backlog. As we look forward, we expect the full effects of the civil sector reset to manifest in our q two financials and intend to return to growth in the back half of this year. Our teams are all in, working with mission owners to ensure that as funding solidifies, Booz Allen can accelerate. As we look ahead, we are moving forward aggressively. We are meeting with senior administration officials and with customers at all levels.

Our technology based approach resonates loudly with their agendas. They see opportunity to invest in technology, from AI to cyber to quantum, to drive both cost efficiency and mission effectiveness. And these discussions have reaffirmed my optimism about the medium and long term. Our Vault strategy, which stands for velocity, leadership, and technology, and especially our unique investments and positioning in the technology ecosystem, are among our key differentiators. Having the mission insights to adapt and deploy commercial technology at speed and scale are differentiators for us as well.

Other companies can do this too, of course, but none as well as Booz Allen. We hear this from customers and from technology partners regularly. So we are using this moment of rapid market transition to move faster ourselves. I believe we are on track to shave years off our transformation timeline. To drive that acceleration, we are focusing relentlessly on the five priorities I outlined in May.

Allow me to summarize that progress. First, we have restructured and reset our civil business in alignment with the existing demand environment. In the first quarter, we acted quickly to right size our talent, optimize the business, and adapt to short term challenges. Now we are focused on returning to growth by capturing opportunities in priority missions. One example is modernization, which we know is important to civilian agencies and across government.

In May, we were awarded a $51,000,000 task order with customs and border protection or CBP. Through this work, we are using our technologies and partnership with AWS to help CBP move to the cloud. This is a meaningful opportunity to inject new tech into a high priority mission and potentially expand as opportunities arise. Second, we are reimagining how we deliver our work to prepare for a shift to outcome based opportunities. We believe this shift will enable greater innovation and generate cost savings for the government.

For example, ThunderDome is our proven zero trust solution for DOD, and we are in the process of expanding its customer base and transitioning parts of it to be outcome based. Thunderdome is an ideal candidate because it has clearly defined mission outcomes, such as quickly advancing the department's Zero Trust architecture goals. We are very proud of the outcomes we've delivered. We met all of these as Zero Trust standards more than two years ahead of schedule. Third, we are directing resources to the areas that will best position us for growth.

Our defense technology group is a great example. Back in April, we consolidated these activities into one team to focus on an area that is prime for growth. This group is dedicated to rapidly injecting advanced technologies into defense missions that protect and empower our nation's warfighters. Let me describe three examples of the momentum we have built. One, we have successfully deployed our modular detachment kit or MDK into live fire exercises and operations across Europe and Africa.

This kit offers unprecedented multi domain integration that bridges technological gaps by seamlessly fusing sensor and data link information. MDK is revolutionizing tactical command and control, giving our warfighters a clearer understanding of the battle space. Two, we have been building on our tactical assault kit, which is a series of plug in ready solutions that can be added to a mobile device and used in the field. We recently added two new tools, SIDEX and GV Streamer, that help users communicate in real time and livestream full motion video. These unique capabilities have been successfully deployed in theater as well as during hurricane relief efforts, the Super Bowl, and the presidential inauguration.

And three, we were just awarded a new $315,000,000 contract with the United States Air Force for our tactical operations center light battle management system prototype or TOC L. It's a major program of record in the Department of the Air Force's battle network, and it will accelerate information and decision superiority at the edge. We are going to deploy Talk L to 70 locations around the world, including Europe and The Pacific. So taken altogether, these are three examples of how we are growing our business while outfitting war fighters with the tech they need to stay safe, ready, and lethal. The fourth priority focuses on advancing our partnerships across the tech ecosystem.

America needs to maintain global technological supremacy, and our nation's advanced technology ecosystem is the greatest innovation engine in the world. Booz Allen's leading role in this ecosystem is unique. From our partnerships with hyperscalers to our venture investments with startups, we are finding and cocreating next generation technology and making it work inside our nation's most important missions. In a moment, Matt will share more on how we are accelerating this priority. And finally, we are creating efficiencies in our own business so we can move faster and realize greater shareholder value even in a volatile environment.

We are using AI assisted tools to build software faster and reimagine our delivery. We're using AI and automation to run the business smartly and more efficiently. We're integrating commercial tech from other companies, and those companies are telling us that we are on the leading edge. We're not just generating speed to outcomes for our customers. We're also doing it for ourselves.

In closing, these five priorities demonstrate how we are accelerating Booz Allen's transformation. From AI to cyber, to space and supporting our war fighters at the edge, Booz Allen is delivering solutions at the center of America's key emissions. So I want to thank my colleagues for all that they do. I'm so inspired by them every day, and I'm grateful that our country has them on our side. Together, we are navigating this time of tremendous change and staying ready to help our nation move faster. And with that, Matt, over to you.

Thank you, Horacio. Hey. Good morning, everyone. As Horacio noted, we anticipated a period of short term disruption and slowdown in funding, followed by real medium to long term opportunity as the new administration's priorities take hold. We continue to see both these forces play out in different ways and on different timelines across the business.

In this environment, we are attacking opportunities with both ideas and optimism. I remain amazed at how quickly Booz Allen can transform and how deeply impactful our work is for the nation. Before diving into the numbers, I wanna cover my five takeaways for the quarter. First, the first quarter played out very much as we expected. We delivered growth in revenue ex billables, where most of our profitability is generated, and at the bottom line.

While difficult, we also quickly reshaped our talent base through targeted cost and headcount reductions that were heavily concentrated in our civil business. Second, we are winning deeply technical, high quality work that is in line with lasting mission priorities. We achieved an excellent quarterly book to bill of 1.42 times, and total backlog hit an all time Q1 record of $38,000,000,000. More important, the type of work we are winning underscores that our pivot to become the premier company bringing advanced technology to mission is working. Third, we deployed a significant amount of capital to generate value for our shareholders.

In the quarter, we repurchased just over 1% of our outstanding shares. Fourth, we doubled down on the strategic bets that will propel the business forward. These include investing in solutions aligned with national priorities, bolstering our talent base, continuing to build mission ready technology, and strengthening our partnerships with commercial and defense tech companies. We continue to gain momentum in all these areas. And as a sign of our conviction, earlier this week, we increased our commitment to Booz Allen Ventures by $200,000,000 Finally, we saw a meaningful increase in our cash flow outlook.

The change in R and D capitalization in the One Big Beautiful bill will result in roughly $200,000,000 federal cash tax benefit this fiscal year. In addition, based on a negotiated agreement with the IRS on a previously disclosed tax position, we now expect to receive a refund of approximately $170,000,000 next fiscal year. In summary, the first quarter tracked in line with our plan. We are working aggressively to drive near term growth in a dynamic finding environment, and we continue to strategically transform our business. I will now cover our first quarter numbers in more detail.

For the first quarter, gross revenue was down roughly 1% year over year to $2,900,000,000 Revenue excluding billable expenses, where most of our profitability is generated, grew 2% year over year. We continued to see strong performance in our Defense and Intel businesses. Revenue for the quarter was up 7% in Defense and up 6% in Intel compared to the prior year period. As expected, revenue in our Civil business was down 13% year over year. Moving to demand, the volume and quality of our sales continued to be strong.

We booked $4,200,000,000 in awards in the quarter, including two awards greater than $500,000,000 As a result, our first quarter book to bill was 1.42 times, and our trailing twelve month book to bill was 1.31 times. Our total backlog hit $38,000,000,000 up 11% year over year. At the end of the first quarter, the size of our proposal pipeline was nearly $43,000,000,000 While lower than fiscal year twenty twenty five, which was historically high, our current year pipeline is 3% higher than at the same point in fiscal year twenty twenty four. We are adding to this pipeline by investing in areas central to the priorities of the current administration, advancing our big ideas for transforming government, and co creating and selling with our commercial technology partners. As we noted on the last two earnings calls, we are seeing more variability in converting bookings to revenue than we have seen in previous years.

Pivoting now to headcount. Booz Allen closed the quarter with roughly 33,000 employees. As a result of the restructuring actions, our customer facing staff was down 5% year over year and 7% sequentially. We will continue to effectively match supply and demand in what is a very dynamic environment. Through the balance of the fiscal year, we aim to increase hiring to support the ramp of our significant recent wins as well as areas where we see demand accelerating.

Turning now to profitability. In the first quarter, we generated $311,000,000 in adjusted EBITDA, up 3% from the prior year period. This translated to an adjusted EBITDA margin of 10.6%, up 30 basis points year over year. We continue to run the business efficiently while investing in the advanced technologies, tools and talent needed to support strategic growth. Working down the P and L, first quarter net income was $271,000,000 The year over year increase of 64 in net income was primarily a result of a favorable agreement we reached with the IRS in the quarter that is related to strategic tax planning initiatives from prior years.

As a result of this agreement, we recognized a one time income tax benefit of $106,000,000 This was partially offset by the impact of the one time costs associated with headcount reductions in the quarter. In addition to this P and L impact, we expect to receive a cash refund of approximately $170,000,000 next fiscal year. Adjusted net income was $184,000,000 up 2% versus the prior year. This excludes both the onetime income tax benefit and the impact of the onetime headcount reduction costs. Diluted earnings per share grew 70% year over year to $2.16 per share, and adjusted diluted earnings per share increased 7% year over year to $1.48 per share.

Both diluted earnings per share and Datapps benefited from overall profitability, a reduction in share count, and an unrealized gain from one of our venture investments, which were slightly offset by higher net interest expense. Moving now to the balance sheet. We finished the first quarter with $711,000,000 of cash on hand, net debt of $3,300,000,000 and a net leverage ratio of 2.5 times adjusted EBITDA for the trailing twelve months. Our balance sheet is exceptionally strong. It remains both a key strategic asset and a vehicle for generating incremental shareholder value.

Free cash flow for the quarter was $96,000,000 the result of $119,000,000 of cash from operations, plus $23,000,000 of CapEx. Turning to capital deployment, during the quarter, we deployed a total of $233,000,000 to generate additional value for shareholders. This included $154,000,000 in share repurchases at an average price of $109.42 per share, dollars 70,000,000 in quarterly dividends, and $9,000,000 in strategic investments made through Booz Allen Ventures. I'll note that our Board of Directors has approved a quarterly dividend of $0.55 per share, which will be payable on August 29 to stockholders of record as of August 14. I'm really excited that this week we announced the commitment of an additional $200,000,000 to Booz Allen Ventures.

Since we launched Booz Allen Ventures in July, we have deployed the majority of our initial $100,000,000 commitment to 17 exceptional portfolio companies. This includes our investment in Firestorm, a leading attributable drone company that we announced just last week. With Booz Allen's help, these 17 companies have delivered real mission impact to our customers, performed well above market financially, and driven strategic value for the company. We anticipate that this additional $200,000,000 will be deployed against 20 to 25 new companies over the next five years. Booz Allen remains committed to ensuring America's technical superiority over its adversaries.

Now please turn to page seven for our full fiscal year outlook. We are only updating our full year guidance to reflect the anticipated federal tax impact on our cash flow from the passage of the One Big Beautiful bill. We now expect free cash flow to be between $900,000,000 and $1,000,000,000 As we noted last quarter, we anticipate that revenue and profit growth will be comparatively lower in the first half of our fiscal year, particularly in our second quarter due to a decrease in the provision for claim costs in the second quarter last year. Our full year performance will be impacted by the timing of and extent to which we return to a more normalized funding environment. In closing, while the current environment is dynamic, our intent is clear, to manage through this fiscal year with flexibility and discipline and to go on offense, lead with transformative technology, drive mission impact, and reaccelerate growth.

We remain confident in our Voalte strategy and our ability to continue to generate lasting value for our customers, our people, and our shareholders. With that, operator, please open the line for questions.

Thank you. And it's from Louis De Palma with William Blair. Please proceed.

Horacio, Christine, Matt and Dustin, good morning.

Hey. As part of your 1.4 times book to bill, you won several, I would say, Palantir slash Andoril esque awards over the past few months under the new administration. And you could also call these awards vintage Booz Allen with this Air Force Data Fusion Award. You said that the Department of Defense continues to review contracts. But is it fair to say that there is now a greater appreciation for all of the neat tech that you do bring to the table with all of your commercial tech partnerships?

And is the procurement environment better than it was three months ago?

Why don't I start, Louis? I think it it is, as you point out, fair to say that the business has stabilized in what is still a very dynamic environment. As as we pointed out in the prepared remarks, there are contracts being reviewed. The tech is holding out extraordinarily well. The impact on mission is very strong.

We feel very good about that, and our teams are working very closely with each of our customers. You know, our long standing customers understand the value Booz Allen brings and the tech that we are producing and the fact that our technology and the awards you point out, what what's really neat about them is these are all awards where Booz Allen is doing work for the warfighter many times in the kill chain that needs to that need and the tech needs to work under some of the most extreme conditions. And everybody recognizes that while a lot of people can bring tech, we are the ones that can make it work in those conditions. And so that's why we're accelerating our transformation. That's why we're so excited about the work that we're winning.

And and we're why we are spending all of our time really positioning for upside and for opportunities along the lines that that you're describing. You know, as we said, the the the procurement environment has improved, but it's still operating below historical speeds. And we're we're hoping and and looking for and staying very close to it to do our part in ensuring that it it regains speed. But, overall, especially when you look past the immediate term, we we feel very optimistic.

Thanks. And and recently, the the Department of Defense's Chief Digital and Artificial Intelligence Office, they awarded large contracts to many of the language learning model providers from Silicon Valley. And with the Trump administration's focus on commercial tech, what is the interest from Silicon Valley and these commercial tech providers to partner with you? And and, secondarily, what is the implications of you partnering with commercial tech with fixed price outcome based contracts?

Well, as as you know, working with commercial tech companies has been a big part of our strategy now for years. We work with the smallest of companies, series a, through our venture fund, all the way to significant partnerships with hyperscalers. We've been working closely with NVIDIA for seven or eight years. We've been working closely with AWS for years. And and it makes sense to me that the department is is getting more interest and getting more involved with the people that are building the foundational models that that are powering the AI revolution.

And at the same time, they need Booz Allen because we are the ones that make the tech work in mission. That's understood, I believe, by the department, but it's also understood by the commercial tech providers. In our discussions with them, they see us as the best at doing that. They see us as the people they want to partner with. In many cases, I'm told by very senior people, by my counterparts in these companies that we are the the the one partner they would like to have in their portfolio, and we feel the same way about them.

And so I think that from the standpoint of where we go forward, our ability to productize on top of their tech, the department's desire to do more outcome based, and this entire move towards deploying this technology faster are all positive secular trends for Booz Allen.

Great. And and and for for Matt, with with fixed price contracts, is this potentially a a win win for you and and the customer?

Absolutely. I think we've been talking about, you know, our desire to move to more outcome based and and fixed price contracts for for years now. So it certainly has a potential to be win win for everybody.

Thank you. Our next question is from Gautam Khanna with TD Cowen. Please proceed.

I had a couple of questions. First, I was curious if you could comment on the funded backlog trends. It's been down a couple of quarters in a row. I just wanted to square that with the overall book to bill.

Yeah. I think it's entirely consistent with what we said, which is, you know, we're willing we're winning work. We've got a lot of positive demand signals, not just from our customers, but from commercial tech partners that we're working with, but funding is a little bit slow. So that's why you're seeing a relative decline in funded backlog, but increases in other portions.

Does that portend kind of a big catch up at some point or is there, I mean, at what point is there an absolute level at which we should actually get concerned or you know, I just wonder how do we at what point does it become a worry issue if at all?

I, you know, we've said that our year, you know, really will hinge on the extent to which funding environment normalizes. You know, this is an industry wide issue. We're hearing it not just from companies like ours, but, you know, from our venture port goes. So, you know, we're not concerned. We got a lot of confidence in the medium term. It's really just a timing issue, Gautam.

Yeah. If I I'll just build on that by by saying, you know, if if you look at the the passage of the one big beautiful bill and the amount of money that is being directed towards significant technology investments both in DOD and across the government. You know, I I I think it it portends that that that money needs to be put on contract, needs to be spent the for the administration to advance its key priorities. So, you know, we fully expect that that there will be increases along the line. The only question in our mind is how quickly do those get turned on.

Yeah. Fair enough. I guess I'm I'm also trying to get it. Typically, we have a September fiscal year end flush or, you know, money has to be allocated. Do you anticipate that same seasonality this time around given all the noise?

Yeah. We're we're still planning for an acceleration. I mean, there's there are significant mission needs. As Horacio mentioned, there is also the new funding in the one big, beautiful bill. And also, with the procurement environment being slow, there's a bit of a backlog for funding needs.

But as Matt said, it's really a matter of timing, and we're waiting to see how that plays out.

Okay. Question I get frequently from investors is on the headcount targets for the end of the fiscal year for you guys. I believe it has to be about flat with the year end threethirty one. Just if you could talk about any sort of challenges in hiring, are you seeing any and how comfortable you are with the ability to onboard the people you need to hit the guidance.

Yeah. We are very comfortable. We are pacing our hiring to demand. We are not seeing challenges in getting the talent that we need. It's just a matter of timing and matching the hiring with the demand.

We're also driving more productivity in our teams, you know, using advanced technology and delivery. And we, as Matt said, wanna keep switching to an outcomes based contracting approach. And I think taken all together, we're very confident.

Yeah, just to build up what Christine said, I think it's important to say we are still hiring. Right? We hired almost a thousand people in the quarter and attrition remains low. Large portions of our business, you know, we're winning work and expanding work. As Christine said, this really is about matching supply and demand.

So we're, you know, our focus right now is staying close to customers, driving mission impact and getting funding on contract, and and head count will follow.

Terrific. Last one for me. The Advanta contract, there seems to be some relook at that and just wondered if there's any impact to Boost this year or next.

You know, I did I I think that the immediate form of the answer is I think that the the department is still thinking through their acquisition strategy for the the next the next period. But at the same time, you know, we're extremely proud of the work that we're doing, the impact that we're having. To my knowledge, Avana is the only scale platform that can do what it can do across the federal government. I think that's widely recognized. And, frankly, we've been able to win work across the government, including, in some key civil missions because what we do what we did in Havana, can be, can be replicated.

So, you know, I I I think overall, this is really positive. The other thing that I will say is we've done some interesting work in Havana around populating and bringing AI into those data streams, and that knowledge has allowed us to continue to drive AI across the vast majority of our contracts to the place where our AI business is still growing and expected to grow significantly this year. We're engaging in in a number of discussions about how do we make that happen faster and especially given the conversations that we're having this week in Washington around the AI summit and the subsequent executive orders. We see a lot of upside.

Thank you. Our next question comes from the line of Mariana Perez Mora with Bank of America. Please proceed.

So my first question is gonna be about Golden Dawn. Now that the reconciliation bill actually funded the purpose, and it has been a while since the president announced this. What is the role that Busanen could play there and how much visibility you have on how fast that could play out? Is more like a data operating system integrator, like what you're doing with TalkHealth for the Air Force, or, like, what else could Booz Allen be exposed to?

So, Mariana, we are very close to what's happening with Golden Dome. As you know, Golden Dome itself got funded to the tune of 25,000,000,000 in the reconciliation package, and there's about another 24 additional billion for missile defense that in that has some overlap or some surrounding things, and then there's also intelligence aspects to this. And and we are very close to everybody who's developing different piece parts. Booz Allen can play a variety of roles, and we're positioning to play a variety of roles. Some are more traditional aligned to the type of work that we do, especially on cyber and intel.

Some are are more aligned with with other things that we've done, like you said, around data platforming and and the like. But as we've discussed publicly around our our Brilliance forms approach, we have, if not the one of the few meaningful answers to the Boost mid course space based interception where our solution is modeled extremely well. And so we're we're excited about all of the possibilities, staring very close to it, and participating in the procurement process as it ramps up.

Thank you so much. And then two more specific questions about the near term. About Matt, you mentioned in the prepared remarks that civilian work or, like, the civilian revenue was expected to bottom into next quarter. How much of a headwind remains? And the second one, Christine, you you mentioned that the challenge on hiring was not, like, attracting that talent but matching the demand and the ramp up.

Could you please give us some color around, like, how you think about that? How fast can you actually hire talent and actually deploy that talent, especially when you think about more like deeply technical roles or roles that need clearances? Thank you.

Thank you. I'll start with civil. I mean, our civil business is very stable even though the environment is really dynamic. And weire still doing excellent work bringing AI into software development, securing some highly visible national events using our public safety tech solutions, stopping fentanyl at the border, speeding veteran benefit eligibility determinations, our core work that we have in many agencies is still continuing. So the one time reset from the first quarter, now that we have that behind us, is actually quite stable in Civil and we are very confident moving into the medium term, and as Matt said, preparing to return to growth in Civil.

With respect to hiring, I think when I talk about matching, it's not so much technical worried so much about matching from a technical perspective. We do a great job recruiting across all the technical disciplines that we need. It's more that as civil declined and intel and defense are growing faster, just matching with the security clearances, location, etcetera, for where the work is growing. We are actually quite good at this and have done a lot of work last fiscal year in automating a lot of those processes and getting much better matching algorithms and using AI in our hiring and recruiting. And so that's an area that we're quite confident in that we can handle that going forward.

Thank you. Our next question is from Colin Kenfield with Cantor. Please proceed.

Hey, thanks for the question. Maybe talking through the non operational cash flow building blocks, starting with cash tax, you suggested 200,000,000 in twenty six million and $170,000,000 in 27,000,000 Is it fair to assume that there are continued repeat benefits in '28 to track to that sort of curve? And then if we think about the VC kind of funding tailwind environment, like using albedo as an example, right, where it's already doubled in terms of private valuation. But maybe talking through kind of how we should think about potential tailwinds from that in the '27 and '28 time period in terms of like a cash flow number or something like a net income number. Thank you.

Yeah. Thanks, Colin. I'll take them. So, look, we had two really positive cash occurrences in the quarter. First, the passage of the one big beautiful bill that's gonna create about a $200,000,000 cash tax benefit for us this year.

And I will highlight that that's federal cash tax benefit only as we're waiting to see how the states will will react and implement. And then second, you know, in q one, we reached a favorable agreement with the IRS related to strategic tax planning initiatives from prior years around R and D tax credits. We talked about this for a couple years now and had approximately 150,000,000 receivable on the books, as well as an uncertain tax position reserve related to this topic. So really positive outcome there. You saw the impact from an accounting standpoint flow through our gap P and L this quarter, and we anticipate getting a a cash refund of a 170 next.

So 200,000,000 in cash this year, 170 approximately next year. We're still waiting to see what's gonna happen from a state perspective on the one big beautiful bill. There will be a small recurring benefit because there's no more $1.74 drag in our cash taxes going forward. It's not gonna be nearly to the magnitude of $200,000,000 We actually haven't quantified that yet, but you'll see some small recurring benefit from a federal cash perspective cash tax perspective at minimum. On the venture side, look, I'm really pleased with the performance of Booz Allen Ventures and excited about the increase in our commitment.

We've been at the forefront of bringing commercial tech to government for decades. And so Booz Allen Ventures has been a very natural extension of this commitment to ensuring America's technical superiority of our adversaries long term and near term that some of our critical mission gaps in our clients or our customers are filled. So it's still early, but the fund's financial performance to date is in the top decile of comparable funds. It's all been on paper so far. To your point, we do expect to see some cash tailwinds as, you know, gains from these investments are realized, but we're also gonna be investing.

So I wouldn't build anything in your models, right? Because we're upsizing our commitment, but we're also gonna be seeing the returns from some of our early investments. But look, we continue to grow and innovate with these portcos, whether it's integrating hidden layers products into our commercial cybersecurity and incident response solutions or building on top of Seek's technology or bringing hidden level onto our programs where we're having real impacts at the edge. I think it's, you know, our commitment to Booz Allen Ventures is just another sign of how we're going on offense and how we're accelerating our strategic transformation.

Got it. That's that's great color. I appreciate it. And then in terms of, like, quarter to date, do you have a good sense of kind of how many like, how much bookings we have quarter to date and kind of what that bridges us to in terms of a potential book to bill for the next fiscal quarter?

Yeah. It's still early in the quarter, Colin. But as we said a couple times here, you know, right now, we're not focused on bookings as much as getting funding and getting things started and ramped up. We got a really robust pipeline. We're excited about not just the quantity, but the quality of the things that we have in our pipeline.

You know, whether it's realized this quarter or next quarter, less important to us right now than getting work started.

Got it. And then as long as we're kind of asking multi part questions here, can you maybe speak to the contracting officer environment and how the big beautiful bill spend getting passed is interacting with the accounts of funding officers in terms of outlays versus awards and like that translation of basically freeing up money now alongside what I'd say is a constructive 25 versus waiting for Congress to get back and pass 26 full regular budgets?

Yeah. As we said a couple of times, the funding is moving more slowly. Part of that is having fewer contracting officials to actually move the funding. And some of it is just the, I think, drag from the last quarter of multiple reviews and getting back on solid footing. There is a lot of demand you know, for for the work on the mission areas, not just at the one big beautiful bill.

And so, you know, we are still planning for that log jam to break, and and that will play out over the next few weeks.

Thank you. One moment for our next question. It comes from Sheila Kahyaoglu with Jefferies. Please proceed.

Good morning, guys, and thank you for the time. And maybe

Booz Allen Hamilton Holding (BAH) Q1 2026 Earnings Call Transcript

Company Participants