Booz Allen Hamilton reported QQ3 2026 results that reflect a disciplined execution in a fluid macro environment. Revenue of $2.62 billion declined roughly 10% year over year (YoY) and about 9% quarter over quarter (QoQ), primarily due to the protracted government shutdown and funding delays that shifted some work from Q3 into Q4. Despite the revenue pullback, adjusted EBITDA of $285 million and an EBITDA margin of 10.9% were stronger than anticipated, supported by aggressive cost actions and tight cost control. Net income of $200 million and diluted EPS of $1.63 (ADEPS of $1.77 on an adjusted basis) benefited from a lower tax rate and a smaller share count, though these were partly offset by higher interest expense and a mix shift in profitability drivers. The quarter confirmed ongoing execution against three strategic priorities: (1) cost reduction to boost agility and free capacity for growth, (2) acceleration of the transition to outcome-based contracting and fixed-price work, and (3) doubling down on growth vectors such as cyber, national security, partnerships, and AI. Management characterized the outlook as cautiously optimistic, with a multi-year path to reaccelerate growth driven by a strong and expanding national security portfolio, a recovering civil business, and a deepening AI/cyber capability stack. The company narrowed FY2026 guidance and highlighted a robust backlog and pipeline as key indicators of improving demand into FY2027, along with a significant strategic rollout of commercial partnerships (including a16z) and productized IP (Velox Reverser). Looking ahead, Booz Allen projects revenue of $11.3-$11.4 billion for FY2026, adjusted EBITDA of $1.195-$1.215 billion, ADEPS of $5.95-$6.15, and free cash flow of $825-$900 million, while noting Q4 may be seasonally softer as it catches up on billable expenses and funding cycles. These dynamics position Booz Allen to potentially outpace revenue growth with margin expansion as fixed-price and outcome-based engagements scale, though execution will hinge on government funding cycles and the pace of civil-market recovery.