Defense contractor Booz Allen Hamilton Holding Corp. (BAH) stock fell Friday after the company reported fiscal fourth-quarter results that topped earnings estimates despite weaker revenue, declining headcount and mixed fiscal 2027 guidance.

The company reported adjusted earnings of $1.78 per share, beating analyst estimates of $1.34. Revenue fell 6.4% year over year to $2.78 billion, missing Wall Street expectations of $2.89 billion.

Backlog Growth And Workforce Trends

Booz Allen said backlog increased 3.1% to a record $38 billion, while the quarterly book-to-bill ratio was 0.9x. Revenue excluding billables declined 6.8%. Quarterly operating income fell to $263 million from $274 million a year earlier.

Booz Allen Hamilton currently employs approximately 31,500 staff globally. Customer staff headcount declined to 28,800 as of March 31, down from 32,700 a year earlier.

Balance Sheet And Dividend Update

The company ended the quarter with $728 million in cash and equivalents. Long-term debt, net of the current portion, stood at $3.92 billion.

Booz Allen also announced a quarterly dividend of 59 cents per share, payable June 26, 2026, to shareholders of record as of June 10, 2026.

CEO Highlights Transformation Strategy

Chairman and Chief Executive Officer Horacio Rozanski said the company delivered strong profitability during a difficult year while continuing to advance its transformation strategy.

Rozanski said Booz Allen enters fiscal 2027 with momentum and plans to continue investing in growth areas and technology initiatives to support long-term shareholder value and national priorities.

Fiscal 2027 Outlook Raised

Booz Allen Hamilton said it expects fiscal 2027 revenue to range from $11.2 billion to $11.7 billion, compared with analyst expectations of $11.55 billion. The forecast implies year-over-year growth of 0% to 4%.

The company projected adjusted EBITDA of $1.24 billion to $1.29 billion, implying a margin of about 11%. Booz Allen also forecast adjusted diluted earnings of $6.00 to $6.35 per share, versus Wall Street estimates of $6.21 per share.

Free cash flow is expected to range from $825 million to $925 million. Booz Allen expects an effective tax rate between 20% and 23% and average diluted shares outstanding of 118 million to 120 million.

Capital expenditures are projected at about $220 million, including $105 million tied to the company's new headquarters project.

Booz Allen Stock Moves Lower

BAH Price Action: Booz Allen Hamilton shares were trading down 2.10% at $74.75 at the time of publication on Friday, according to market data.