ToplineThe Treasury Department is cancelling all contracts with consulting firm Booz Allen Hamilton directly citing the case of Charles Littlejohn—a former Booz Allen contractor who was sentenced to five years in federal prison for leaking President Donald Trump’s tax returns in 2024.Booz Allen’s stock slumped over 11% on Monday after the contracts were cancelled.Getty ImagesKey FactsSecretary Scott Bessent said the Treasury Department will cancel 31 total contracts with Booz Allen, which are worth $4.8 mil ...

Treasury Secretary Scott Bessent on Monday said he had cancelled all Treasury Department contracts with the consulting firm Booz Allen Hamilton, one of whose employees leaked the tax records of President Donald Trump, and the billionaires Jeff Bezos and Elon Musk, to media outlets.Booz Allen Hamilton's stock price dropped by 8% on the heels of the Treasury Department's announcement.The department said it currently has 31 separate contracts with Booz Allen Hamilton, totaling $4.8 million in annual spending a ...

Booz Allen Hamilton (BAH) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, BAH crossed above the 200-day moving average, suggesting a long-term bullish trend.A useful tool for traders and analysts, the 200-day simple moving average helps determine long-term market trends for stocks, commodities, indexes, and other financial instruments. It moves higher or lower in conjunction with longer-term price performance, and serves as a support ...

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 companies such as Leidos Holdings, CACI International, Science Applications International Corporation, Huntington Ingalls Industries, and CDW Corporation [1] Financial Performance - BAH's Return on Invested Capital (ROIC) is 18.09%, significantly higher than its Weighted Average Cost of Capital (WACC) of 5.00%, resulting in a ROIC to WACC ratio of 3.62, indicating efficient capital utilization [2][6] - Leidos Holdings, Inc. (LDOS) has a ROIC of 14.77% and a WACC of 5.98%, leading to a ROIC to WACC ratio of 2.47, which is lower than BAH's [3] - CACI International Inc (CACI) shows a ROIC of 8.62% against a WACC of 6.12%, with a ratio of 1.41, indicating less effective capital utilization compared to BAH [3] - Science Applications International Corporation (SAIC) has a ROIC of 11.27% and a WACC of 4.84%, resulting in a ROIC to WACC ratio of 2.33, still below BAH's efficiency [4] - Huntington Ingalls Industries, Inc. (HII) has the lowest ratio of 0.94, with a ROIC of 4.79% and a WACC of 5.12%, suggesting its returns barely cover its cost of capital [4] - CDW Corporation (CDW) presents a ROIC of 12.25% and a WACC of 7.35%, resulting in a ROIC to WACC ratio of 1.67, which is not as efficient as BAH [5] Competitive Advantage - BAH's superior ROIC to WACC ratio makes it an attractive option for investors seeking strong financial performance compared to its peers [5][6]

Booz Allen Hamilton (NYSE:BAH) is a prominent player in the consulting services industry, providing management and technology consulting services to government and commercial clients. The company has a strong presence in the U.S. and is known for its expertise in analytics, digital solutions, and cybersecurity. Booz Allen competes with other consulting giants like Accenture and Deloitte.On January 23, 2026, Truist Financial set a price target of $98 for Booz Allen Hamilton. At that time, the stock was tradi ...

Key Points Booz Allen beat on earnings but missed on sales this morning. Booz guided lower on sales and free cash flow for the rest of the year. 10 stocks we like better than Booz Allen Hamilton › Booz Allen Hamilton (NYSE: BAH), the defense contractor no one had ever heard of before its employee Edward Snowden leaked government secrets back in 2013, reported a powerful earnings beat this morning, sending its shares soaring 9.2% through 11:30 a.m. ET. Analysts forecast Booz would earn $1.27 per sha ...

On costs, Calderone said the company completed actions during the quarter that reduced run-rate spending by approximately $150 million , with most of the profitability benefit expected next fiscal year rather than in the third quarter. In Q&A, management said the cost actions are essentially complete, with limited impact expected in Q4 and “the full weight” expected next fiscal year.Calderone said the shutdown delayed procurements and funding actions and that the company estimates these disruptions will hav ...

Booz Allen (NYSE:BAH) Q3 2026 Earnings call January 23, 2026 08:00 AM ET Company ParticipantsColin Canfield - DirectorDustin Darensbourg - Head of Investor RelationsHoracio Rozanski - Chairman, CEO, and PresidentJonathan Siegmann - Managing DirectorKristine Martin Anderson - EVP and COOMatt Calderone - EVP and CFOScott Mikus - Director of ResearchSeth Seifman - Executive DirectorSheila Kahyaoglu - Managing DirectorTobey Sommer - Managing DirectorConference Call ParticipantsGautam Khanna - AnalystJohn Godin ...

Financial Data and Key Metrics Changes - Gross revenue for the third quarter totaled $2.6 billion, representing a roughly 10% decline year-over-year and a 7% decline on a revenue ex-billable basis [20][21] - Adjusted EBITDA for the third quarter was $285 million, translating to an Adjusted EBITDA margin of 10.9% [23] - Net income for the third quarter was $200 million, a 7% increase year-over-year, while adjusted net income was $215 million, an increase of about 9% from the prior year [24] Business Line Data and Key Metrics Changes - The national security portfolio declined about 1% year-over-year, but grew about 4% when adjusting for the impact of the government shutdown [21] - The Civil business experienced a significant decline of about 28% year-over-year, with expectations for stability moving forward [21][51] - Net bookings for the third quarter totaled $888 million, resulting in a quarterly book-to-bill ratio of 0.3x [21] Market Data and Key Metrics Changes - Funded backlog fell 10% year-over-year, but ended the calendar year with a record year-end backlog of over $38 billion, up about 2% from the prior year [22] - The qualified pipeline for fiscal year 2027 stands at nearly $53 billion, which is 12% higher than the fiscal year 2026 pipeline at the same point last year [22][29] Company Strategy and Development Direction - The company is focusing on three priorities: reducing costs, accelerating the transition to outcome-based contracting and product sales, and concentrating investments on growth vectors like cyber, national security, partnerships, and AI [7][12] - A new partnership with Andreessen Horowitz aims to co-create unique commercial technology for national security and public safety, with Booz Allen committing to deploy up to $400 million in a16z's late-stage venture fund [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational and strategic trajectory, anticipating continued change in a dynamic environment [16] - The demand for national security technology and expertise remains robust, with optimism about the Civil business beginning to reignite [30] Other Important Information - The company is transitioning to fixed-price and outcome-based models, which are expected to create cost savings for the government and support margin expansion over the medium to long term [10] - The company recognized a $7 million pre-tax gain from the divestiture of DARPA's SETA work, which is excluded from non-GAAP adjusted income [24] Q&A Session Summary Question: End market expectations for FY27 - Management indicated that defense and intelligence are expected to grow, while Civil is anticipated to remain flat, with potential for recovery in the future [34][36] Question: Cost reduction plan - The cost reduction actions were completed during the quarter, with some impact expected in Q4, but the full effect will be felt next fiscal year [44][46] Question: Funded backlog and growth in fiscal 2027 - Management noted that awards are starting to accelerate, with strong funding activity observed in December and January, positioning the company for growth [75][76] Question: Competition from new players - The competitive landscape has evolved, with new commercial competitors emerging, but the company is leveraging unique relationships with tech firms to create opportunities [77][78] Question: Changes in selling to the government - The company has become more agile in its approach, focusing on commercial partnerships and outcome-based solutions to drive growth [54][56]

Financial Data and Key Metrics Changes - Gross revenue for the third quarter totaled $2.6 billion, representing a roughly 10% decline year-over-year and a 7% decline on a revenue ex-billable basis [18] - Adjusted EBITDA for the third quarter was $285 million, translating to an adjusted EBITDA margin of 10.9% [22] - Third-quarter net income was $200 million, a 7% increase year-over-year, while adjusted net income increased by about 9% to $215 million [22] Business Line Data and Key Metrics Changes - The national security portfolio declined about 1% year-over-year, but grew approximately 4% when adjusting for the impact of the government shutdown [19] - The civil business experienced a significant decline of about 28% year-over-year, with expectations for stability in the remainder of the fiscal year [19] - Net bookings for the third quarter totaled $888 million, resulting in a quarterly book-to-bill ratio of 0.3 times [20] Market Data and Key Metrics Changes - Funded backlog fell 10% year-over-year, but ended the calendar year with a record year-end backlog of over $38 billion, up about 2% from the prior year [21] - The qualified pipeline for fiscal year 2027 stands at nearly $53 billion, which is 12% higher than the fiscal year 2026 pipeline at the same point last year [21] Company Strategy and Development Direction - The company is focusing on three priorities: reducing costs, accelerating the transition to outcome-based contracting and product sales, and concentrating investments on growth vectors like cyber, national security, partnerships, and AI [6][11] - A new partnership with Andreessen Horowitz (A16Z) aims to co-create unique commercial technology for national security and public safety, with Booz Allen committing to deploy up to $400 million in A16Z's late-stage venture fund [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational and strategic trajectory, anticipating continued demand for national security technology and expertise [27] - The company expects quarter four funding to improve over quarter three but remain slower than usual, tightening revenue guidance to between $11.3 billion and $11.4 billion [26] Other Important Information - The company recognized a $7 million pre-tax gain from the divestiture of DARPA's Cedar work, which is excluded from non-GAAP adjusted income [23] - The board of directors approved a quarterly dividend of $0.59 per share, payable on March 2nd [25] Q&A Session Summary Question: End market expectations for FY27 - Management indicated that the national security business is expected to grow, while civil may remain flat, with signs of improvement in the civil sector [29] Question: Cost reduction plan - The cost reduction actions have been completed, with some impact expected in Q4, but the full effect will be felt in the next fiscal year [33][34] Question: Funded backlog and growth in fiscal 2027 - Management noted that awards are beginning to accelerate, with strong funding activity observed in December and January, positioning the company for growth [47] Question: Increased competition from new players - The competitive landscape has evolved, with a focus on leveraging unique relationships with tech companies to create opportunities [48] Question: Tactical selling and on-contract growth - Management acknowledged the importance of matching customer needs with solutions, noting encouraging signs in funding and pipeline growth [50]