Booz Allen Hamilton (NYSE:BAH) Posts Earnings Results, Beats Expectations By $0.28 EPS

Booz Allen Hamilton (NYSE:BAH) released its quarterly 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 business had revenue of $2.78 billion for the quarter, compared to analyst estimates of $2.81 billion. Booz Allen Hamilton had a net margin of 7.01% and a return on equity of 76.71%. The firm’s revenue was down 3.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.49 earnings per share. 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 Stock Down 4.5%

BAH stock traded down $3.54 during mid-day trading on Friday, hitting $75.03. The stock had a trading volume of 1,071,250 shares, compared to its average volume of 2,055,789. The company has a current ratio of 1.60, a quick ratio of 1.59 and a debt-to-equity ratio of 3.26. Booz Allen Hamilton has a 1-year low of $59.50 and a 1-year high of $109.10. The company has a fifty day moving average of $74.23 and a 200 day moving average of $73.64. The stock has a market capitalization of $9.03 billion, a price-to-earnings ratio of 11.72, a PEG ratio of 1.80 and a beta of 0.37.

Analysts Set New Price Targets

BAH has been the subject of a number of research analyst reports. UBS Group increased their target price on Booz Allen Hamilton from $70.00 to $78.00 and gave the company a “neutral” rating in a report on Monday, July 27th. Wall Street Zen raised Booz Allen Hamilton from a “hold” rating to a “buy” rating in a research report on Monday. Weiss Ratings raised Booz Allen Hamilton from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday. The Goldman Sachs Group reduced their price objective on Booz Allen Hamilton from $74.00 to $65.00 and set a “sell” rating for the company in a research note on Tuesday, July 14th. Finally, Citigroup decreased their price objective on Booz Allen Hamilton from $82.00 to $77.00 and set a “neutral” rating for the company in a research report on Wednesday, October 7th. Four research analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $85.62.

Trending Headlines about Booz Allen Hamilton

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

• Positive Sentiment: Fiscal second-quarter adjusted EPS was $1.76, above the consensus estimate of $1.48 and up from $1.49 a year earlier. Booz Allen Hamilton Q2 Earnings Beat Estimates
• Positive Sentiment: Booz Allen raised fiscal 2027 adjusted EPS guidance to $6.50-$6.70, above the $6.34 analyst consensus, while setting revenue guidance at $11.3 billion-$11.6 billion. Booz Allen Hamilton Fiscal 2027 EPS Guidance
• Positive Sentiment: Total backlog increased 1.9% year over year to approximately $41 billion, and quarterly book-to-bill was 1.5x, suggesting continued demand visibility. National Security revenue also edged higher. Booz Allen Q2 Revenue and Backlog Update
• Positive Sentiment: ICE expanded Booz Allen’s analytics contract by $5.9 million to target overseas scam networks, adding a modest near-term contract win. ICE Expands Booz Allen Analytics Contract
• Neutral Sentiment: The company declared a quarterly dividend of $0.59 per share, payable December 4, 2026.
• Negative Sentiment: Quarterly revenue totaled $2.78 billion, below the $2.81 billion estimate and down 3.9% year over year. Civil and Commercial revenue declined sharply to $702 million from $827 million, offsetting growth in National Security. Booz Allen Q2 Earnings and Revenue

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.