Booz Allen Hamilton (NYSE:BAH) Stock Jumps 4.6% Following Earnings Beat

Key Points

• Booz Allen Hamilton shares rose 4.6% after quarterly EPS of $1.76 beat the $1.48 consensus estimate, although revenue declined 3.9% year over year to $2.78 billion. The company issued fiscal 2027 EPS guidance of $6.50–$6.70.
• The company reported approximately $41 billion in contract backlog and more than 20% year-over-year growth in its national-security qualified pipeline, supporting future revenue visibility.
• Booz Allen declared a quarterly dividend of $0.59 per share, equivalent to $2.36 annually and a roughly 2.9% yield. Analyst sentiment remains mixed, with an average rating of “Hold” and a $87.57 average price target.

Booz Allen Hamilton Holding Corporation (NYSE:BAH - Get Free Report) shares shot up 4.6% during mid-day trading on Monday after the company announced better than expected quarterly earnings. The company traded as high as $82.93 and last traded at $81.9490. Approximately 176,335 shares changed hands during mid-day trading, a decline of 91% from the average session volume of 2,059,244 shares. The stock had previously closed at $78.32.

The business services provider reported $1.76 earnings per share for the quarter, topping the consensus estimate of $1.48 by $0.28. The company had revenue of $2.78 billion for the quarter, compared to analysts' expectations of $2.81 billion. Booz Allen Hamilton had a return on equity of 75.00% and a net margin of 7.14%. The firm's revenue for the quarter was down 3.9% on a year-over-year basis. During the same period in the previous year, the firm posted $1.49 earnings per share. Booz Allen Hamilton has set its FY 2027 guidance at 6.500-6.700 EPS.

Booz Allen Hamilton Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Thursday, November 12th will be issued a $0.59 dividend. The ex-dividend date is Thursday, November 12th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 2.9%. Booz Allen Hamilton's dividend payout ratio is presently 37.11%.

Booz Allen Hamilton News Summary

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

• Positive Sentiment: Earnings and guidance improved: Booz Allen reported quarterly adjusted EPS of $1.76, exceeding the $1.48 consensus estimate, despite revenue falling 3.9% year over year to $2.78 billion. Management raised full-year fiscal 2027 EPS guidance to $6.50–$6.70, supporting the investment case. Booz Allen raises EPS guidance as backlog reaches $41 billion
• Positive Sentiment: Backlog and pipeline provide visibility: Contract backlog reached approximately $41 billion, while the national-security qualified pipeline grew more than 20% year over year. National-security fixed-price contracts also increased by three percentage points, potentially supporting future margins and growth. Booz Allen Hamilton: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: TD Cowen turned bullish: The firm upgraded BAH from Hold to Buy and assigned a $95 price target, indicating confidence that the stock’s valuation and earnings outlook offer upside. TD Cowen upgrade
• Neutral Sentiment: Dividend maintained: The company declared a quarterly dividend of $0.59 per share, or $2.36 annualized, representing an approximately 3% yield. This supports income appeal but is unlikely to be the primary catalyst for the session.
• Neutral Sentiment: Analyst coverage of the earnings call highlighted key questions surrounding government-contracting demand, AI-related competitive pressures, margins and the pace of revenue recovery. Five analyst questions from the earnings call
• Negative Sentiment: Analyst disagreement remains a risk: BofA Securities lowered its price target to $68, below the prevailing market valuation, reflecting concern about the revenue decline, government-spending changes or execution risks. BofA lowers Booz Allen price target

Analyst Ratings Changes

Several research firms recently weighed in on BAH. Truist Financial upgraded Booz Allen Hamilton from a "hold" rating to a "buy" rating and lifted their price objective for the company from $70.00 to $85.00 in a report on Thursday, October 8th. Cantor Fitzgerald dropped their target price on shares of Booz Allen Hamilton from $160.00 to $140.00 and set an "overweight" rating on the stock in a report on Thursday, July 23rd. Bank of America reiterated an "underperform" rating on shares of Booz Allen Hamilton in a report on Monday. Weiss Ratings raised shares of Booz Allen Hamilton from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday. Finally, Citigroup reduced their price target on shares of Booz Allen Hamilton from $82.00 to $77.00 and set a "neutral" rating for the company in a report on Wednesday, October 7th. Five analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, Booz Allen Hamilton presently has an average rating of "Hold" and an average target price of $87.57.

Institutional Trading of Booz Allen Hamilton

Institutional investors have recently bought and sold shares of the stock. Signaturefd LLC lifted its stake in Booz Allen Hamilton by 42.2% during the 3rd quarter. Signaturefd LLC now owns 734 shares of the business services provider's stock valued at $51,000 after acquiring an additional 218 shares during the period. Citizens Financial Group Inc. RI purchased a new stake in shares of Booz Allen Hamilton in the 3rd quarter valued at $647,000. Fifth Third Wealth Advisors LLC increased its stake in shares of Booz Allen Hamilton by 8.9% in the third quarter. Fifth Third Wealth Advisors LLC now owns 4,197 shares of the business services provider's stock worth $291,000 after acquiring an additional 343 shares during the period. OLIO Financial Planning increased its stake in shares of Booz Allen Hamilton by 8.6% in the third quarter. OLIO Financial Planning now owns 8,860 shares of the business services provider's stock worth $615,000 after acquiring an additional 700 shares during the period. Finally, Insight Advisors LLC PA increased its stake in shares of Booz Allen Hamilton by 3.9% in the third quarter. Insight Advisors LLC PA now owns 5,736 shares of the business services provider's stock worth $398,000 after acquiring an additional 213 shares during the period. 91.82% of the stock is currently owned by institutional investors and hedge funds.

Booz Allen Hamilton Trading Up 5.5%

The company has a debt-to-equity ratio of 3.53, a current ratio of 1.43 and a quick ratio of 1.59. The company's fifty day moving average is $74.24 and its 200-day moving average is $73.61. The stock has a market cap of $9.94 billion, a PE ratio of 12.79, a PEG ratio of 1.86 and a beta of 0.37.

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.

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