Booz Allen Reports Strong Profitability in FY2026 as AI, Cyber and Defense Tech Investments Accelerate

Booz Allen Hamilton posted fiscal 2026 revenue of $11.2 billion, a 6.4% decline year-over-year, but achieved adjusted EBITDA of $1.23 billion and a record $38 billion backlog, fueled by national security demand. The McLean, Virginia-based firm attributed growth to investments in AI, cybersecurity, and defense technology, countering declines in civil sector contracts. Chairman and CEO Horacio Rozanski called FY2026 the most challenging year since the company went public, citing federal procurement disruptions, but emphasized profitability and momentum entering FY2027. The company’s strategy focuses on AI-enabled defense and cyber capabilities, with President and COO Kristine Martin Anderson highlighting national security work as a key offset to civil sector declines. Booz Allen expanded its defense tech ecosystem through a partnership with Anduril Industries to integrate cyber, zero trust, and command-and-control systems into Anduril’s Menace compute and communications platforms. Steve Escaravage, president of Booz Allen’s defense technology group, described the collaboration as advancing American-made defense technology for contested environments. Missile defense and space systems also drove growth, with Booz Allen among 20 organizations selected by Space Systems Command for Space-Based Interceptor contracts supporting the Pentagon’s Golden Dome missile defense initiative. Rozanski noted a 90% increase in OTA proposal submissions and 50% growth in OTA awards compared to the prior year, reflecting expanded activity in outcome-based contracting. Despite federal market headwinds, Booz Allen’s adjusted EBITDA reached $1.23 billion, and its trailing 12-month book-to-bill ratio was 1.1x, signaling confidence in its transformation strategy. The company remains positioned to capitalize on national security demand, particularly in cyber and defense technology, as it navigates procurement challenges.