Booz Allen Hamilton (NYSE:BAH) Announces Earnings Results, Beats Expectations By $0.46 EPS

Booz Allen Hamilton (NYSE:BAH) issued its earnings results on Friday. The business services provider reported $1.78 EPS for the quarter, beating analysts’ consensus estimates of $1.32 by $0.46, FiscalAI reports. The firm had revenue of $1.91 billion for the quarter, compared to analyst estimates of $2.87 billion. Booz Allen Hamilton had a return on equity of 76.79% and a net margin of 7.35%.Booz Allen Hamilton’s revenue for the quarter was down 5.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.61 earnings per share. 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 Trading Up 3.1%

Shares of BAH stock opened at $78.70 on Friday. The company has a debt-to-equity ratio of 3.76, a current ratio of 1.81 and a quick ratio of 1.81. The company has a market cap of $9.49 billion, a price-to-earnings ratio of 11.69, a PEG ratio of 4.41 and a beta of 0.32. The stock has a 50 day simple moving average of $78.57 and a 200-day simple moving average of $83.25. Booz Allen Hamilton has a 1-year low of $68.83 and a 1-year high of $120.04.

Booz Allen Hamilton Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Wednesday, June 10th will be paid a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend is Wednesday, June 10th. Booz Allen Hamilton’s dividend payout ratio is presently 35.07%.

Booz Allen Hamilton News Summary

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

• Positive Sentiment: BAH reported quarterly EPS of $1.78, well above the $1.32 consensus, suggesting stronger-than-expected profitability. Booz Allen Hamilton (BAH) Q4 Earnings Surpass Estimates
• Positive Sentiment: Management said cost-cutting helped lift fiscal fourth-quarter profit, which likely reassured investors about margin resilience despite softer sales. Booz Allen Profit Rises Amid Cost Cutting
• Positive Sentiment: The company also guided FY 2027 EPS in a range of 6.00 to 6.35, which brackets the consensus estimate and signals continued earnings stability. Booz Allen Hamilton Announces Fourth Quarter and Full Year Fiscal 2026 Results
• Neutral Sentiment: Revenue of $1.91 billion missed expectations of $2.86 billion and was down 5.9% year over year, offsetting part of the earnings beat. Booz Allen Hamilton Earnings Report and Conference Call
• Neutral Sentiment: FY 2027 revenue guidance of $11.2 billion to $11.7 billion was roughly in line with expectations, limiting the upside from the outlook. Booz Allen Hamilton Announces Fourth Quarter and Full Year Fiscal 2026 Results
• Negative Sentiment: The revenue shortfall highlights ongoing demand pressure in Booz Allen’s government services business, which may temper enthusiasm if growth does not reaccelerate. Booz Allen Hamilton Rises After Earnings. Has the Stock Hit Bottom?

Wall Street Analyst Weigh In

BAH has been the topic of a number of recent research reports. William Blair reiterated an “outperform” rating on shares of Booz Allen Hamilton in a research report on Tuesday, March 3rd. DA Davidson set a $81.00 target price on Booz Allen Hamilton in a research report on Tuesday, January 27th. Jefferies Financial Group set a $85.00 price objective on Booz Allen Hamilton in a research report on Monday, May 11th. UBS Group restated a “neutral” rating and issued a $97.00 price objective on shares of Booz Allen Hamilton in a research report on Tuesday, January 27th. Finally, Stifel Nicolaus upped their price objective on Booz Allen Hamilton from $106.00 to $115.00 and gave the stock a “hold” rating in a research report on Monday, January 26th. One equities research analyst has rated the stock with a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Reduce” and an average price target of $93.33.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Rakuten Securities Inc. raised its stake in shares of Booz Allen Hamilton by 414.6% during the 2nd quarter. Rakuten Securities Inc. now owns 247 shares of the business services provider’s stock worth $26,000 after buying an additional 199 shares during the period. Fulcrum Asset Management LLP acquired a new position in shares of Booz Allen Hamilton during the 3rd quarter worth approximately $32,000. PenderFund Capital Management Ltd. acquired a new position in shares of Booz Allen Hamilton during the 4th quarter worth approximately $30,000. Transamerica Financial Advisors LLC acquired a new position in Booz Allen Hamilton in the 2nd quarter valued at $41,000. Finally, Larson Financial Group LLC raised its stake in 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 purchasing an additional 340 shares during the last quarter. 91.82% of the stock is owned by institutional investors and hedge funds.

About Booz Allen Hamilton

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.