Core Insights - Q3 2025 has negatively impacted several stocks, indicating a broader market reaction that may not accurately reflect individual company performance [1] Group 1 - The market's reaction in Q3 2025 suggests that it may be overreacting, leading to potential undervaluation of certain stocks [1] - There is a possibility that some companies are being unfairly punished alongside those that are genuinely underperforming [1]

Core Viewpoint - Booz Allen Hamilton Holding Corporation (BAH) reported weak financial results for Q2 of fiscal 2026, leading to multiple analysts reducing their price targets for the stock [2][5]. Financial Performance - Revenue decreased by 8.1% year-over-year to $2.9 billion, while net income fell by 55.1% to $175 million compared to the same period last year [2]. - The company has revised its full-year outlook downward due to a "continued funding slowdown" [2]. Analyst Reactions - Stifel reduced its price target from $119 to $106 while maintaining a Hold rating, noting this was the second time in three months that management's outlook was worse than expected [3]. - Goldman Sachs lowered its price target from $93 to $80 and kept a Sell rating, citing weak financial performance and adverse effects from government funding re-prioritization [5]. - UBS also cut its price target from $115 to $93, maintaining a Neutral rating on the stock [6]. Market Environment - Analysts indicated that while the market environment for government services is not worsening, it remains far from normalizing for Booz Allen [4]. - There is ongoing volatility and uncertainty in the market, prompting analysts to favor stocks that are not experiencing similar declines [4][6].

Core Insights - Booz Allen Hamilton Holding Corporation (BAH) is a management and information technology consulting firm primarily serving the U.S. government in defense, intelligence, and civil markets [1] - BAH competes with firms such as Leidos Holdings, CACI International, and Science Applications International Corporation, which offer similar consulting and technology services [1] Financial Performance - BAH's Return on Invested Capital (ROIC) is 17.85%, significantly higher than its Weighted Average Cost of Capital (WACC) of 5.09% [2][5] - The ROIC to WACC ratio for BAH is 3.50, indicating that it generates returns well above its cost of capital [2][5] Peer Comparison - Leidos Holdings has a ROIC of 14.48% and a WACC of 6.37%, resulting in a ROIC to WACC ratio of 2.27, showing lower efficiency compared to BAH [3] - CACI International has a ROIC of 8.62% and a WACC of 6.11%, leading to a ROIC to WACC ratio of 1.41, indicating lower efficiency than BAH [3] - Science Applications International Corporation (SAIC) has a ROIC of 12.41% and a WACC of 5.24%, resulting in a ROIC to WACC ratio of 2.37, but still lower than BAH's ratio [4]

Core Insights - Booz Allen Hamilton Holding Corp is a management and information technology consulting firm primarily serving the U.S. government in defense, intelligence, and civil markets [1] - The company is competing with major firms like Accenture and Deloitte [1] Stock Performance - Currently, Booz Allen Hamilton (BAH) is trading at $82.82, with a slight decrease of 0.01% today [3] - The stock has experienced a trading range between $82.23 and $85.04 for the day [3] - Over the past year, BAH has seen a high of $190.59 and a low of $82.23, indicating significant volatility [3][6] Market Capitalization and Trading Volume - Booz Allen Hamilton's market capitalization is approximately $10.35 billion, reflecting its size and influence in the consulting industry [4] - The trading volume today is 2,383,592 shares, indicating active investor interest [4] Executive Actions and Strategic Discussions - CEO Horacio Rozanski made a significant purchase of 23,800 shares at $84.66 each, increasing his total ownership to 687,745 shares [1][6] - The recent Q2 2026 earnings call on October 24, 2025, provided insights into the company's financial performance and strategic plans [2][6] - Rozanski's stock purchase and the discussions during the earnings call highlight the company's commitment to growth and shareholder value [5]

Core Insights - Booz Allen Hamilton Holding Corp. (BAH) reported second-quarter fiscal 2026 earnings that met the Zacks Consensus Estimate, but revenues fell short, leading to a 6.4% decline in stock price since the results were released on October 24, 2025 [1] Financial Performance - Quarterly adjusted EPS was $1.49, aligning with estimates but down 17.7% year-over-year [4][9] - Revenues totaled $2.89 billion, missing consensus estimates by 3.1% and decreasing 8.15% year-over-year [4][9] - Adjusted EBITDA was $324 million, a decrease of 11% from the previous year, but exceeded estimates [7] Fiscal 2026 Outlook - BAH expects fiscal 2026 revenues to be between $11.3 billion and $11.5 billion, lower than the previous guidance of $12 billion to $12.5 billion [2] - The midpoint of the revenue guidance ($11.40 billion) is slightly below the Zacks Consensus Estimate of $11.42 billion [2] - Adjusted diluted EPS is projected to be in the range of $5.45 to $5.65, down from prior guidance of $6.20 to $6.55 [3] Backlog and Book-to-Bill Ratio - Total backlog increased by 2.9% year-over-year to $40 billion, but fell short of expectations [5] - Funded backlog decreased by 6.1% to $5.4 billion, while unfunded backlog rose by 19.3% to $10.67 billion [5] - The book-to-bill ratio was 1.7, down from 2.4 in the previous year [6] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the quarter were $816 million, down from $885 million [8] - Long-term debt decreased to $3.88 billion from $3.92 billion [8] - Free cash flow was reported at $395 million, with net cash from operating activities at $421 million [8]

Group 1 - UBS has lowered the price target on Booz Allen (BAH) to $93 from $115, maintaining a Neutral rating on the shares [1] - The analyst indicates that despite a significantly lowered bar, it is too early to determine if the company has reached a trough [1]

Group 1 - The article discusses the importance of conducting thorough due diligence and research before making any investment decisions, emphasizing that the author is not a licensed financial advisor [2][3] - It highlights the potential risks associated with investing in European and Scandinavian stocks, including withholding tax risks that may vary based on the investor's personal situation [2] - The article notes that past performance of investments does not guarantee future results, and any opinions expressed may not reflect the views of the platform as a whole [3]

Core Insights - Booz Allen Hamilton reported disappointing fiscal second-quarter results, with adjusted EPS of $1.49, missing the analyst consensus estimate of $1.51, and quarterly sales of $2.89 billion, down 8.1% year-on-year, also missing the expected $2.99 billion [1] Financial Performance - Fiscal 2026 revenue is now expected to be between $11.3 billion and $11.5 billion, a reduction from the previous forecast of $12.00 billion to $12.50 billion, compared to the analyst consensus estimate of $12.11 billion [2] - The adjusted EPS outlook has been revised to a range of $5.45 to $5.65, down from the prior outlook of $6.20 to $6.55, against the consensus estimate of $6.31 [2] Market Commentary - The company's second-quarter results reflect a bifurcated market, with strong demand for its technologies in cybersecurity, artificial intelligence, and warfighting, leading to new contract wins [3] - Following the earnings announcement, Booz Allen Hamilton shares fell 3.6% to $88.13 [3] Analyst Ratings - JP Morgan analyst Seth Seifman maintained an Underweight rating on Booz Allen Hamilton and lowered the price target from $122 to $90 [5] - Goldman Sachs analyst Noah Poponak maintained a Sell rating and reduced the price target from $93 to $80 [5]

Core Insights - Booz Allen Hamilton reported disappointing fiscal second-quarter results, with adjusted EPS of $1.49, missing the analyst consensus estimate of $1.51, and quarterly sales of $2.89 billion, down 8.1% year-on-year, also missing the expected $2.99 billion [1] Financial Performance - The company revised its fiscal 2026 revenue expectations to $11.3 billion-$11.5 billion, down from a prior forecast of $12.00 billion-$12.50 billion, compared to the analyst consensus estimate of $12.11 billion [2] - Adjusted EPS outlook was also lowered to $5.45-$5.65 from a previous outlook of $6.20-$6.55, against the $6.31 analyst consensus estimate [2] Market Reaction - Following the earnings announcement, Booz Allen Hamilton shares fell 3.6% to $88.13 [3] - Analysts adjusted their price targets for Booz Allen Hamilton, with JP Morgan lowering its target from $122 to $90 and Goldman Sachs from $93 to $80 [5] Management Commentary - The Chairman and CEO, Horacio Rozanski, indicated that the second-quarter results reflect a bifurcated market, but the company is successfully securing new contracts due to strong demand in cybersecurity, artificial intelligence, and warfighting technologies [3]

Core Insights - Booz Allen Hamilton Holding Corporation's share price has decreased by approximately one-third over the last six months due to concerns regarding slowing revenue growth and a weaker near-term outlook [1] Company Summary - The decline in share price was exacerbated by market reactions to the company's financial performance and future projections [1]