Booz Allen Hamilton (NYSE:BAH) Issues Earnings Results, Beats Expectations By $0.51 EPS

Booz Allen Hamilton (NYSE:BAH) issued its earnings results on Friday. The business services provider reported $1.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.26 by $0.51, FiscalAI reports. Booz Allen Hamilton had a net margin of 7.06% and a return on equity of 71.87%. The company had revenue of $1.85 billion for the quarter, compared to analysts’ expectations of $2.74 billion. During the same period in the prior year, the business earned $1.55 EPS. The firm’s quarterly revenue was down 10.2% on a year-over-year basis. Booz Allen Hamilton updated its FY 2026 guidance to 5.950-6.150 EPS.

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

• Completed a company-wide cost reduction program that cut run-rate spend by ~$150 million, with most P&L benefit expected next fiscal year to support margin expansion.
• Accelerating productization and outcome-based work — launched AI-native malware product Velox Reverser in GA and won nearly $100 million of fixed-price Thunderdome work, signaling higher-margin contract mix.
• National security demand remains strong: record year-end backlog of >$38 billion and a qualified pipeline of nearly $53 billion (up 12% y/y), driven by cyber, AI, space, and defense tech opportunities.
• Civil business remains a near-term drag, down ~28% y/y in Q3 and still resetting after funding cuts and the prolonged government shutdown, with recovery described as gradual and uncertain.
• Management tightened FY26 guidance while raising ADEPS to $5.95–$6.15, with expected adjusted EBITDA of $1.195–$1.215 billion and free cash flow of $825–$900 million, aided by a ~$0.47 ADEPS tax benefit.

Booz Allen Hamilton Stock Up 6.8%

Shares of BAH stock opened at $102.25 on Friday. The stock’s fifty day moving average price is $88.30 and its 200 day moving average price is $97.21. Booz Allen Hamilton has a 1-year low of $79.23 and a 1-year high of $137.68. The company has a market cap of $12.40 billion, a price-to-earnings ratio of 15.19, a price-to-earnings-growth ratio of 1.80 and a beta of 0.34. The company has a debt-to-equity ratio of 3.89, a current ratio of 1.76 and a quick ratio of 1.76.

Booz Allen Hamilton News Roundup

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

• Positive Sentiment: EPS beat and stronger-than-expected profitability. BAH reported adjusted EPS above consensus ($1.77 vs. ~ $1.26 consensus), which reassured investors on near-term earnings power. Q3 EPS Beat (Zacks)
• Positive Sentiment: Raised fiscal‑2026 profitability outlook driven by cost cuts. Management said cost-saving actions are taking hold and raised the profit outlook, supporting the rally despite soft revenue. Raised 2026 Profitability Outlook (Seeking Alpha)
• Positive Sentiment: Improved cash/liquidity and operational discipline. Company disclosures and reports show material improvement in operating cash and cash on hand, which lowers execution risk while margins compress. Liquidity Improves (QuiverQuant)
• Neutral Sentiment: Earnings call transcript / investor materials released — useful for parsing forward guidance and segment details, but no headline surprises beyond the outlook. Earnings Call Transcript (Seeking Alpha)
• Neutral Sentiment: Insider buy noted (CEO purchase cited in filings), which can signal management confidence but is a single data point. Insider Purchase (QuiverQuant)
• Negative Sentiment: Revenue missed estimates and remains down year‑over‑year (revenue ~ $2.6B vs. street ~$2.7–2.8B; ~10% YoY decline), highlighting ongoing demand pressure in government consulting. Revenue Miss & YoY Decline (Barron’s)
• Negative Sentiment: Analyst sentiment remains mixed to cautious (median price targets below current highs; several recent sell/underweight ratings), which could cap upside absent sustained revenue recovery. Analyst Ratings (DefenseWorld/Marketbeat)

Insiders Place Their Bets

In other Booz Allen Hamilton news, CEO Horacio Rozanski purchased 23,800 shares of the company’s stock in a transaction dated Thursday, October 30th. The shares were acquired at an average price of $84.66 per share, for a total transaction of $2,014,908.00. Following the completion of the purchase, the chief executive officer owned 687,745 shares of the company’s stock, valued at approximately $58,224,491.70. The trade was a 3.58% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.91% of the company’s stock.

Institutional Trading of Booz Allen Hamilton

Institutional investors have recently bought and sold shares of the stock. Rakuten Securities Inc. increased its stake in Booz Allen Hamilton by 414.6% during the 2nd quarter. Rakuten Securities Inc. now owns 247 shares of the business services provider’s stock valued at $26,000 after purchasing an additional 199 shares in the last quarter. Fulcrum Asset Management LLP purchased a new stake in shares of Booz Allen Hamilton during the third quarter valued at $32,000. Transamerica Financial Advisors LLC acquired a new position in shares of Booz Allen Hamilton in the 2nd quarter valued at $41,000. Larson Financial Group LLC increased its position in shares of Booz Allen Hamilton by 365.6% in the 3rd quarter. Larson Financial Group LLC now owns 433 shares of the business services provider’s stock valued at $43,000 after acquiring an additional 340 shares during the period. Finally, Johnson Financial Group Inc. raised its stake in Booz Allen Hamilton by 26.1% in the 3rd quarter. Johnson Financial Group Inc. now owns 600 shares of the business services provider’s stock worth $60,000 after acquiring an additional 124 shares during the last quarter. 91.82% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several brokerages recently issued reports on BAH. TD Cowen lowered shares of Booz Allen Hamilton from a “buy” rating to a “hold” rating in a report on Friday, October 17th. Zacks Research upgraded Booz Allen Hamilton from a “strong sell” rating to a “hold” rating in a report on Friday, November 28th. Weiss Ratings lowered Booz Allen Hamilton from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, January 12th. Citigroup raised their price objective on Booz Allen Hamilton from $93.00 to $109.00 and gave the company a “neutral” rating in a research report on Tuesday, January 13th. Finally, The Goldman Sachs Group reduced their target price on shares of Booz Allen Hamilton from $93.00 to $80.00 and set a “sell” rating for the company in a report on Monday, October 27th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $110.08.

Booz Allen Hamilton Company Profile

Booz Allen Hamilton Holding Corporation is a publicly traded management and technology consulting firm headquartered in McLean, Virginia. The company provides a wide range of professional services and solutions in strategy, analytics, digital transformation, engineering and cyber security. Its expertise spans from supporting federal civilian agencies to defense, intelligence and homeland security organizations, as well as select commercial industries.

Key offerings include data analytics and artificial intelligence applications, software development and modernization, systems integration, and cyber risk management.