Booz Allen Hamilton Holding Corporation

Good morning. Thank you for standing by and welcome to Booz Allen Hamilton's earnings call covering first quarter fiscal year 2027 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 Darensbourg. Please go ahead.

Good morning and thank you for joining us for Booz Allen's first quarter fiscal year 2027 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 and Chief Executive Officer, Kristine Martin Anderson, President and Chief Operating Officer, and Troy Lahr, Executive Vice President and Chief Financial Officer. As shown in the disclaimer on slide three, some of the items we will discuss this morning are forward-looking and may relate to future events and as such involve known and unknown risk, uncertainties and other factors that may cause our actual results to differ materially from forecasted results discussed in our SEC filings and on this call. During today's call, we also discussed 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 2027 earnings release and slides. It is now my pleasure to turn the call over to our chairman and CEO, Horacio Rozanski, who are now on slide four.

Thank you, Dustin. And good morning, everyone. Thank you for joining the call. Today, Kristine, Troy, and I will share Booz Allen's results for the first quarter of fiscal year 2027. On our May earnings call, we described what we expected for the year ahead. We said we needed to focus on strong execution in a challenging macro environment. We said our civil and national security portfolios will continue to have different trajectories with our growth coming from national security. And we said we will continue accelerating our transformation and investing organically and inorganically in the areas that will drive our future growth. One quarter in, our results are consistent with that view. Our revenues reflect the dynamics we expected. Through exceptional execution, we delivered solid profitability. and we continue to invest and transform. On today's call, I will discuss our results and how we are transforming in the context of the current environment. Then Kristine will cover our business trajectory and Troy will walk through our financial results and outlook. Let me begin by framing the environment. Overall, it remains dynamic and uneven. We are encouraged that funding continues to improve In Q1, funding was up 17% year over year. This is driving our momentum as we help our customers advance their critical mission priorities. And at the same time, we are in a midterm election year. Historical precedent suggests this will complicate the budget process and create some funding uncertainty, particularly towards the end of the government fiscal year and into our second half. In parallel, the government is fast tracking implementation of procurement reform to make fixed price contracts the default approach. This is necessary and positive for the long term. And it could also lead to near term delays in awards as customers adjust how they buy and structure work. Taken together, these environmental dynamics require us to continue executing with discipline and agility and to stay focused in what we know and what we can control. Against that near-term backdrop, the broader direction of the market is clear. Technological change is happening at a blistering pace, reshaping mission needs and making the threat landscape more complex and adaptive. To stay ahead and maintain advantage, our customers need to bring advanced tech into their missions faster, and they need the tech to work. Simply put, our strategic agenda is aligned to meet this moment. We are investing and moving with urgency in the areas we believe will drive our next phase of growth. Our priorities include accelerating our cyber and defense tech growth vectors, advancing our next wave of tech investments, including autonomy and physical AI, quantum, 6G, and AI RAM, and maximizing the value of our unique partnerships and venture investments. We continue to make strong progress across these priorities. Let me give you a few examples beginning with cyber. Agentic AI has fundamentally changed the cyber threat environment in 2026. We are in a new era where offensive cyber tools are becoming autonomous, making attacks faster, more persistent and more dangerous. Our nation needs defenses that can keep up with the pace of this threat. As a leader in cyber, Booz Allen is well positioned to capture this growing demand across government and commercial markets. We continue to move quickly to expand Velox, our suite of agentic cyber products. Velox combines our deep understanding of real-world tradecraft and our AI expertise. We are seeing a high level of customer engagement today, and we expect cyber to continue to drive near and long-term growth. Shifting to defense tech, the mission set is different, but the urgency is just as clear. Within this growth vector, we are rapidly building, scaling, and operationalizing advanced technologies for the warfighting mission. From soldier-worn tech and battle management systems to resilient communications and autonomy, whose Allen is building and integrating products and solutions to deliver battlefield advantage. This need for speed is central to our recently announced agreement to acquire Ultra IMC Mission Solutions. This acquisition will help us expand and scale our defense tech product line and accelerate our growth. Ultra Mission Solutions has a proven product portfolio that spans command and control software, ruggedized edge compute, and encryption management. These products are highly complementary to our own defense tech products. By combining our portfolios and sales channels, we believe we will bring more differentiated and scaled products to market faster. Just as important, this is a team and a business we know well. We have partnered with Ultra for years and have seen firsthand the strategic fit of our cultures and technologies. We expect to close the transaction in the second quarter. Beyond cyber and defense tech, We're also investing in building in the areas where emerging technologies and mission requirements are beginning to converge. Quantum, an area where we have been investing for over a decade, is a good example. One of our focus areas is post quantum cryptography or PQC. Recent executive orders and OMB guidance are accelerating the timeline for agencies to understand their exposure and prepare for migration. We have already been working with early adopters in government and industry to help with our transitions to PQC. And we are well prepared to scale as demand increases. And last but not least, our industry partnerships and VC investments are important accelerators on all our priorities. We continue to go to market with long-term markets like NVIDIA, AWS, and Shield AI. And we are creating differentiated offerings with multiple companies in our venture portfolio. In closing, I hope you'll take three things away from my remarks this morning. One, we are on track with the expectations we laid out in May. Two, the environment remains dynamic and we are executing exceptionally well against the things we can control. and three, we are accelerating our transformation in the areas that matter most to our future growth. And with that, Kristine, over to you to discuss the trajectory of the business.