Booz Allen Hamilton posted higher fourth-quarter profit even as revenue slipped 6.4% to $2.78 billion. The consulting firm's cost-cutting measures helped offset declines in its civil business segment, with net income reaching $205 million compared to $193 million a year earlier.

Adjusted earnings of $1.78 per share significantly exceeded Wall Street's $1.34 expectation, showing the company's ability to maintain profitability during challenging conditions. Revenue fell short of the $2.87 billion consensus forecast, highlighting ongoing pressures in the consulting market.

The firm's total backlog climbed 3.1% to $38 billion, suggesting strong future demand despite current headwinds. This backlog growth indicates clients continue to award contracts, providing visibility into future quarters. The civil business weakness reflects broader government spending patterns affecting consulting firms.

Booz Allen's performance demonstrates how strategic cost management can preserve margins when top-line growth stalls. The company's ability to beat earnings expectations while navigating revenue declines shows operational discipline that investors should monitor.