Booz Allen Hamilton (NYSE:BAH) Issues Earnings Results

Booz Allen Hamilton (NYSE:BAH) released its earnings results on Friday. The business services provider reported $1.76 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.48 by $0.28, FiscalAI reports. The company had revenue of $2.78 billion for the quarter, compared to the consensus estimate of $2.81 billion. Booz Allen Hamilton had a net margin of 7.01% and a return on equity of 76.71%. The company’s revenue was down 3.9% compared to the same quarter last year. During the same period in the prior year, the company posted $1.49 EPS. Booz Allen Hamilton updated its FY 2027 guidance to 6.500-6.700 EPS.

Here are the key takeaways from Booz Allen Hamilton’s conference call:

• National security demand remains strong: Excluding lower billable expenses, national security revenue grew 6% year over year, while funded national security backlog increased 10% and the pipeline grew more than 20%. Management expects national security growth to accelerate in the second half.
• Civil remains a material headwind: Civil revenue declined 15% year over year in the second quarter, primarily due to smaller recompetes and delayed program starts. Management expects the decline to moderate, but now projects a low-double-digit civil decline for the full fiscal year.
• Profitability and cash-flow guidance improved: Adjusted EBITDA margin reached 11.3%, adjusted EPS rose 18% to $1.76, and free cash flow was $263 million in the quarter. The company raised its fiscal 2027 adjusted EBITDA floor, EPS guidance to $6.50–$6.70, and free-cash-flow outlook to $850–$925 million.
• Cyber and defense technology are strategic growth vectors: Booz Allen is investing in agentic cybersecurity products, including the Vellox suite and Guile, which management says reduced attack success rates by more than 95% in testing. The Ultra Mission Solutions acquisition adds defense-tech products and is expected to support double-digit growth with margins above 20%, although integration is still in its early stages.
• Management expects gradual margin expansion: A growing mix of fixed-price and outcome-based contracts, productized intellectual property, and greater use of AI are expected to allow profit to grow faster than revenue over the next several years. Near-term margins may decline in the second half because of seasonality, lower civil volumes, and planned investment spending.

Booz Allen Hamilton Trading Down 0.3%

NYSE:BAH opened at $78.37 on Friday. Booz Allen Hamilton has a 1-year low of $59.50 and a 1-year high of $109.10. The business’s 50-day moving average price is $74.24 and its two-hundred day moving average price is $73.68. The company has a current ratio of 1.60, a quick ratio of 1.59 and a debt-to-equity ratio of 3.26. The firm has a market capitalization of $9.43 billion, a price-to-earnings ratio of 12.17, a PEG ratio of 1.88 and a beta of 0.37.

Key Stories Impacting Booz Allen Hamilton

Here are the key news stories impacting Booz Allen Hamilton this week:

• Positive Sentiment: Adjusted earnings significantly exceeded estimates. BAH reported adjusted EPS of $1.76, above the $1.44-$1.48 analyst consensus range and up from $1.49 a year earlier. Booz Allen Hamilton Holding Crushes Q2 2027 Profit Estimates by 18.9%
• Positive Sentiment: Management raised its fiscal 2027 adjusted EPS guidance to $6.50-$6.70 from $6.00-$6.35, above the approximately $6.34 analyst estimate. Full-year revenue guidance of $11.3-$11.6 billion was broadly in line with expectations. Booz Allen Hamilton Raises FY27 Adj. EPS Guidance
• Positive Sentiment: Demand indicators remained constructive. Total backlog reached $41 billion, up 1.9% year over year, while quarterly book-to-bill was 1.5x and trailing-12-month book-to-bill was 1.1x. National Security revenue increased modestly, supporting the company’s outlook.
• Positive Sentiment: Management expects growth to reaccelerate as pressures in the Civil business ease, potentially providing an improvement catalyst if federal demand normalizes. Booz Allen Expects Growth to Accelerate as Civil Business Pressures Ease
• Neutral Sentiment: BAH declared its regular quarterly dividend of $0.59 per share, payable December 4, 2026, to shareholders of record November 12.
• Negative Sentiment: Revenue missed expectations. Quarterly revenue was $2.78 billion versus the $2.81 billion consensus and fell 3.9% from the prior year. Civil and Commercial revenue dropped to $702 million from $827 million, more than offsetting National Security growth. Booz Allen slides on Q2 revenue miss, hurt by civil division
• Negative Sentiment: The revenue decline raises concerns about near-term growth and execution, particularly if weakness in the Civil division persists despite the higher profit forecast.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. TD Cowen lifted their price target on shares of Booz Allen Hamilton from $75.00 to $77.00 and gave the stock a “hold” rating in a research report on Tuesday, October 6th. Weiss Ratings upgraded shares of Booz Allen Hamilton from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday. Citigroup reduced their price objective on shares of Booz Allen Hamilton from $82.00 to $77.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 7th. Wall Street Zen raised shares of Booz Allen Hamilton from a “hold” rating to a “buy” rating in a research note on Monday, October 19th. Finally, Cantor Fitzgerald lowered their target price on shares of Booz Allen Hamilton from $160.00 to $140.00 and set an “overweight” rating for the company in a report on Thursday, July 23rd. Four analysts have rated the stock with a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, Booz Allen Hamilton has an average rating of “Hold” and a consensus target price of $85.62.

Booz Allen Hamilton Company Profile

Booz Allen Hamilton Holding Corporation is a management and technology consulting company that provides services primarily to governments, defense and intelligence organizations, and commercial clients. The company helps organizations address complex challenges involving strategy, technology modernization, cybersecurity, data and analytics, artificial intelligence, engineering, and mission operations.

Its government-related work spans defense, national security, intelligence, civil government, and health markets.