Booz Allen Hamilton (NYSE:BAH) Issues Quarterly Earnings Results

Key Points

• Booz Allen Hamilton beat EPS expectations in its latest quarter, reporting $1.78 per share versus the $1.32 consensus estimate. However, revenue came in below expectations at $1.91 billion and fell 5.9% year over year.
• Management said fiscal 2026 was the most challenging year since the company went public, citing civil-business headwinds and contract roll-offs. Even so, Booz Allen delivered $1.2 billion in adjusted EBITDA, an 11% margin, and $951 million in free cash flow.
• The company sees stronger demand in national security, highlighted by $1.7 billion of fourth-quarter wins and a $38 billion backlog. It raised FY2027 guidance to $11.2 billion to $11.7 billion in revenue and expects national security growth to offset continued pressure in civil business.

Booz Allen Hamilton (NYSE:BAH - Get Free Report) issued its earnings results on Friday. The business services provider reported $1.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.32 by $0.46, FiscalAI reports. Booz Allen Hamilton had a net margin of 7.35% and a return on equity of 76.79%. The business had revenue of $1.91 billion during the quarter, compared to the consensus estimate of $2.86 billion. During the same period last year, the business posted $1.61 EPS. Booz Allen Hamilton's revenue was down 5.9% on a year-over-year basis. Booz Allen Hamilton updated its FY 2027 guidance to 6.000-6.350 EPS.

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

• Booz Allen said fiscal 2026 was the most challenging year since going public, with revenue declining as the civil business faced unprecedented headwinds and contract roll-offs.
• Despite lower revenue, the company beat profitability expectations, delivering $1.2 billion of adjusted EBITDA, an 11% adjusted margin, and strong free cash flow of $951 million for the year.
• Management highlighted improving demand in national security, including $1.7 billion of fourth-quarter wins, a $38 billion backlog, and a 1.1x trailing 12-month book-to-bill ratio.
• For fiscal 2027, Booz Allen guided to $11.2 billion to $11.7 billion of revenue, with national security expected to grow mid-single digits while civil is expected to decline high single digits, especially in the first half.
• The company is leaning into AI-enabled cyber, defense tech, and outcome-based procurement, citing rapid growth in OTA submissions and awards, the Vellox product suite, and strategic wins like the Golden Dome OTA and the $937 million BEATS contract.

Booz Allen Hamilton Price Performance

Booz Allen Hamilton stock traded up $0.17 during midday trading on Friday, reaching $76.52. The company's stock had a trading volume of 318,086 shares, compared to its average volume of 2,095,418. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 3.76. The stock has a market cap of $9.23 billion, a PE ratio of 11.37, a price-to-earnings-growth ratio of 4.47 and a beta of 0.32. Booz Allen Hamilton has a 52 week low of $68.83 and a 52 week high of $120.04. The business has a 50-day moving average price of $78.52 and a 200-day moving average price of $83.28.

Analysts Set New Price Targets

BAH has been the subject of a number of research reports. Wells Fargo & Company assumed coverage on shares of Booz Allen Hamilton in a research note on Wednesday, April 1st. They set an "equal weight" rating and a $85.00 target price for the company. Truist Financial cut their price objective on shares of Booz Allen Hamilton from $98.00 to $85.00 and set a "hold" rating for the company in a research report on Monday, April 20th. UBS Group reaffirmed a "neutral" rating and issued a $97.00 target price on shares of Booz Allen Hamilton in a research report on Tuesday, January 27th. Jefferies Financial Group set a $85.00 price target on Booz Allen Hamilton in a research note on Monday, May 11th. Finally, DA Davidson set a $81.00 target price on Booz Allen Hamilton in a report on Tuesday, January 27th. One equities research analyst has rated the stock with a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus price target of $93.33.

Institutional Investors Weigh In On Booz Allen Hamilton

Hedge funds and other institutional investors have recently made changes to their positions in the stock. First Trust Advisors LP boosted its position in Booz Allen Hamilton by 36.0% in the fourth quarter. First Trust Advisors LP now owns 4,856,528 shares of the business services provider's stock valued at $409,697,000 after buying an additional 1,285,475 shares in the last quarter. Primecap Management Co. CA lifted its stake in shares of Booz Allen Hamilton by 135.2% in the 4th quarter. Primecap Management Co. CA now owns 4,666,298 shares of the business services provider's stock valued at $393,649,000 after acquiring an additional 2,682,460 shares during the last quarter. State Street Corp lifted its stake in shares of Booz Allen Hamilton by 53.2% in the 4th quarter. State Street Corp now owns 4,402,897 shares of the business services provider's stock valued at $371,428,000 after acquiring an additional 1,528,739 shares during the last quarter. AQR Capital Management LLC boosted its holdings in shares of Booz Allen Hamilton by 48.6% during the 3rd quarter. AQR Capital Management LLC now owns 3,812,243 shares of the business services provider's stock valued at $377,488,000 after acquiring an additional 1,246,451 shares in the last quarter. Finally, Bank of America Corp DE grew its position in Booz Allen Hamilton by 14.7% during the 2nd quarter. Bank of America Corp DE now owns 2,297,416 shares of the business services provider's stock worth $239,230,000 after acquiring an additional 293,603 shares during the last quarter. 91.82% of the stock is owned by institutional investors.

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.

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