Booz Allen Hamilton (BAH) came out with quarterly earnings of $1.77 per share, beating the Zacks Consensus Estimate of $1.26 per share. This compares to earnings of $1.55 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +40.76%. A quarter ago, it was expected that this defense contractor would post earnings of $1.49 per share when it actually produced earnings of $1.49, delivering no surprise.Over the last four quarters, the co ...

Booz Allen reports fiscal third-quarter earnings per share of $1.77 from sales of $2.6 billion. Wall Street was looking for per-share profit of $1.27 from sales of $2.7 billion. ...

Financial Performance - Q3 FY26 - Revenue decreased by 10.2% to $2.6 billion, primarily due to a slowed procurement and funding environment, including the government shutdown[47] - Revenue excluding billable expenses decreased by 6.7% to $1.8 billion[13, 24] - Adjusted EBITDA decreased by 14.2% to $285 million, with adjusted EBITDA margins at 10.9%, a decrease of 50 bps[13, 24] - Adjusted Diluted EPS increased by 14.2% to $1.77, driven by profitability and tax benefits[13, 14] - Free Cash Flow increased by 85.1% to $248 million due to higher collections, lower payables, and lower tax payments[13, 47] Backlog and Book-to-Bill - Backlog increased by 2% year-over-year to $38 billion[14] - Quarterly book-to-bill was 0.3x, and LTM book-to-bill was 1.1x[14] Capital Deployment - $125 million was deployed in share repurchases during the third quarter, representing 1.1% of outstanding shares[16] - The board approved a quarterly dividend of $0.59 per share, a 7% increase[16] - A $400 million capital commitment was made for a partnership with Andreessen Horowitz (a16z)[16] FY26 Financial Outlook - Revenue is projected to be $11.3 - $11.4 billion, representing a decrease of 5.0 - 6.0%[18] - Adjusted EBITDA is expected to be $1,195 - $1,215 million, with adjusted EBITDA margin on revenue in the mid 10% range[18] - Adjusted Diluted EPS is projected to be $5.95 - $6.15[18] - Free Cash Flow is expected to be $825 - $900 million[18]

Core Viewpoint - Booz Allen Hamilton has raised its profit outlook for the fiscal year due to effective cost-saving measures initiated in response to funding cuts for consultants by the Trump administration [1] Group 1 - The company’s cost-saving efforts are beginning to yield positive results, contributing to an improved financial outlook [1] - The adjustments made by the company are a direct response to changes in government-contract funding, indicating a proactive approach to market conditions [1]

Financial Performance - Revenue for the three months ended December 31, 2025, was $2,620 million, a decrease of 10.2% compared to $2,917 million for the same period in 2024[12] - Operating income for the nine months ended December 31, 2025, was $770 million, down 29.7% from $1,095 million in 2024[12] - Net income for the three months ended December 31, 2025, was $200 million, an increase of 6.9% from $187 million in 2024[15] - Earnings per share (EPS) for the three months ended December 31, 2025, was $1.64, compared to $1.46 for the same period in 2024, reflecting a 12.3% increase[12] - Revenue decreased by 10% to $2,620 million for the three months ended December 31, 2025, and by 6% to $8,434 million for the nine months ended December 31, 2025, compared to the prior year period[81] - Operating income fell by 21% to $230 million for the three months ended December 31, 2025, and by 30% to $770 million for the nine months ended December 31, 2025, reflecting a decrease in operating margin from 10% to 9%[88] - Net income increased by 7% to $200 million for the three months ended December 31, 2025, but decreased by 13% to $646 million for the nine months ended December 31, 2025, compared to the prior year[91] Assets and Liabilities - Total assets as of December 31, 2025, were $7,051 million, a decrease from $7,312 million as of March 31, 2025[10] - Total liabilities as of December 31, 2025, were $6,026 million, down from $6,309 million as of March 31, 2025[10] - Total stockholders' equity as of December 31, 2025, was $1,025 million[18] - The company had total debt of $3,940 million as of December 31, 2025, with a long-term debt net of current portion amounting to $3,857 million[37] - Long-term debt, net of current portion, was $3,857 million as of December 31, 2025, slightly down from $3,915 million as of March 31, 2025[110] Cash Flow and Investments - Cash and cash equivalents at the end of the period were $882 million, slightly down from $885 million at the beginning of the period[17] - Net cash provided by operating activities for the nine months ended December 31, 2025, was $801 million, compared to $790 million in 2024, indicating a 1.4% increase[17] - Net cash provided by operations was $801 million for the nine months ended December 31, 2025, compared to $790 million in the prior year period, primarily driven by lower tax payments[101] - Net cash used in investing activities was $52 million for the nine months ended December 31, 2025, a decrease from $184 million in the prior year, mainly due to the previous year's acquisition of PGSC[102] - Net cash used in financing activities was $752 million for the nine months ended December 31, 2025, compared to $706 million in the prior year, attributed to an increase in share repurchases of $24 million and term loan payments of $22 million[103] Shareholder Actions - The company repurchased common stock worth $521 million during the nine months ended December 31, 2025[17] - The company repurchased 1.3 million shares of Class A Common Stock for $125 million during the three months ended December 31, 2025[18] - For the nine months ended December 31, 2025, the company repurchased 4.7 million shares for $486 million[18] - The company declared a quarterly cash dividend of $0.59 per share on January 23, 2026, payable on March 2, 2026, with total dividends of $67 million and $205 million for the three and nine months ended December 31, 2025, respectively[104] - The company repurchased 4.7 million shares for an aggregate of $486 million during the first nine months of fiscal 2026, with approximately $759 million remaining under the repurchase program[105] Operational Metrics - Revenue from cost-reimbursable contracts accounted for 58% of total revenue in Q3 2025, while time-and-materials and fixed-price contracts contributed 22% and 20%, respectively[29] - Defense customers generated $1,454 million in revenue, representing 55% of total revenue for the three months ended December 31, 2025, compared to 50% in the same period of 2024[29] - Total backlog as of December 31, 2025, was $38.456 billion, an increase of 2% from $37.879 billion as of December 31, 2024[76] - Funded backlog decreased from $4.658 billion in December 2024 to $4.206 billion in December 2025[76] - Unfunded backlog increased from $8.478 billion in December 2024 to $10.059 billion in December 2025[76] - Additions to funded backlog totaled $11.0 billion for the twelve months ended December 31, 2025, compared to $11.8 billion for the same period in 2024[77] Tax and Compliance - The effective income tax rates for the three months ended December 31, 2025, and 2024, were (7.0)% and 24.7%, respectively, with a tax benefit of $57 million recognized during the same period[41] - As of December 31, 2025, the company recorded $78 million in reserves for uncertain tax positions, primarily related to research and development tax credits, with a reduction of $86 million due to IRS examination adjustments[42] - The company recorded long-term income tax receivables of $176 million as of December 31, 2025, related to amended U.S. federal return refund claims[43] - The company is subject to various risks including changes in U.S. government spending and potential impacts from government shutdowns, which may affect future performance[113] Strategic Initiatives - The company is implementing actions to reduce costs by approximately $150 million annually due to a slowed procurement environment[66] - The company plans to relocate its headquarters to new office space in Reston, Virginia, with estimated total undiscounted base lease payments of $222 million[56] - The company plans to opportunistically access financing markets to secure additional debt capital resources for strategic acquisitions and investments[100] Reporting and Compliance - The company reported its quarterly financial results for the three and nine months ended December 31, 2025, with a focus on condensed consolidated balance sheets and statements of operations[101] - The financial statements include comprehensive income and cash flow statements for the same periods, highlighting key performance metrics[101] - The report is formatted in Inline XBRL, enhancing the accessibility and usability of the financial data for stakeholders[101] - Certifications from the Chief Executive Officer and Chief Financial Officer were filed, ensuring compliance with regulatory requirements[31.1][31.2][32.1][32.2] - The company is committed to transparency and accuracy in its financial reporting, as evidenced by the detailed disclosures in the quarterly report[101] - The report includes notes to the condensed consolidated financial statements, providing additional context and insights into the company's financial position[101] - The company continues to adhere to the Securities Exchange Act of 1934, maintaining its obligations as a registrant[130] - The financial results will inform future strategic decisions and operational adjustments as the company navigates market conditions[101] - The report emphasizes the importance of accurate financial reporting in supporting investor confidence and market stability[101] - The company is focused on leveraging its financial data to drive growth and enhance shareholder value moving forward[101]

Revenue Performance - Revenue for Q3 fiscal 2026 was $2.6 billion, a 10.2% decrease year-over-year, adjusting to a 6% decrease excluding the impact of the government shutdown[6] - Total revenue for the nine months ended December 31, 2025, was $8.4 billion, a 6.3% decrease year-over-year[7] - Revenue for the three months ended December 31, 2025, was $2,620 million, a decrease of 10.2% compared to $2,917 million for the same period in 2024[29] - Revenue from the Defense sector for the three months ended December 31, 2025, was $1,454 million, slightly up from $1,453 million in 2024[43] Profitability Metrics - Adjusted EBITDA for Q3 was $285 million, representing a 14.2% decrease, with an adjusted EBITDA margin of 10.9%, down 50 basis points from the previous year[6] - Adjusted diluted EPS for Q3 was $1.77, a 14.2% increase compared to the previous year[6] - Net income for Q3 increased by 7.0% to $200 million, while adjusted net income rose by 8.6% to $215 million[6] - Operating income for the nine months ended December 31, 2025, was $770 million, down 29.7% from $1,095 million in 2024[29] - Net income for the nine months ended December 31, 2025, was $646 million, a decrease of 13% compared to $742 million for the same period in 2024[31] - Basic earnings per share for the three months ended December 31, 2025, was $1.64, an increase of 12.3% from $1.46 in 2024[29] Cash Flow and Capital Management - Free cash flow for Q3 was $248 million, compared to $134 million in the prior year, marking an 85.1% increase[7] - Free cash flow for the nine months ended December 31, 2025, was $739 million, compared to $717 million for the same period in 2024[32] - Capital deployment for the quarter amounted to $195 million[6] - The company repurchased 1.1% of outstanding shares during the third quarter[6] - The company repurchased common stock worth $521 million during the nine months ended December 31, 2025[31] Guidance and Future Outlook - The updated fiscal year 2026 revenue guidance is projected to be between $11.3 billion and $11.4 billion, with revenue growth expected to be between -5.0% and -6.0%[8] - The company anticipates future improvements in operating margins and revenue growth, although specific forecasts were not provided[28] Backlog and Demand Indicators - The company reported a record backlog of $38 billion and a quarterly book-to-bill ratio of 0.3x, indicating strengthening demand across Civil and National Security portfolios[6] - Total backlog as of December 31, 2025, was $38,456 million, an increase from $37,879 million in 2024, with funded backlog at $4,206 million[41] - The company reported a book-to-bill ratio of 0.3x for the three months ended December 31, 2025, down from 0.6x in the same period of 2024[42] Balance Sheet Highlights - Total assets as of December 31, 2025, were $7,051 million, down from $7,312 million as of March 31, 2025[30] - Total liabilities as of December 31, 2025, were $6,026 million, a decrease from $6,309 million as of March 31, 2025[30] - Cash and cash equivalents at the end of the period were $882 million, compared to $885 million at the beginning of the period[31] - Net cash provided by operating activities for the nine months ended December 31, 2025, was $801 million, an increase from $790 million in 2024[31] - The company reported total debt of $3,940 million as of December 31, 2025, with a net leverage ratio of 2.5[37] Contract Types and Revenue Composition - Cost-reimbursable contracts accounted for 58% of total revenue for the three months ended December 31, 2025, up from 57% in the same period of 2024[44] - Time-and-materials contracts represented 22% of total revenue for the three months ended December 31, 2025, consistent with the previous year[44] - Fixed-price contracts made up 20% of total revenue for the three months ended December 31, 2025, unchanged from the same period in 2024[44] - For the nine months ended December 31, 2025, cost-reimbursable contracts increased to 59% of total revenue, compared to 57% in the same period of 2024[44] - Time-and-materials contracts remained at 22% of total revenue for the nine months ended December 31, 2025, similar to the previous year[44] - Fixed-price contracts decreased to 19% of total revenue for the nine months ended December 31, 2025, down from 20% in 2024[44] Workforce Changes - Total headcount decreased to 31,600 as of December 31, 2025, from 35,900 in 2024, with customer staff headcount at 29,000[43]

MCLEAN, Va.--(BUSINESS WIRE)--Booz Allen Hamilton Holding Corporation (NYSE: BAH), the parent company of advanced technology company Booz Allen Hamilton Inc., today announced preliminary results for the third quarter fiscal year 2026. "We remain focused on building and delivering tech that works for the most important U.S. missions. We continue to invest and accelerate our growth strategy as we position for the future." - Horacio Rozanski, Booz Allen Chairman, CEO and President Share Booz Allen's press rele ...

Core Viewpoint - Booz Allen Hamilton is expected to report a decline in earnings and revenue for the upcoming third quarter, reflecting potential challenges in the current market environment [1]. Financial Performance - Analysts predict Booz Allen Hamilton will report earnings of $1.27 per share for the fourth quarter, down from $1.55 per share in the same period last year [1]. - The consensus estimate for quarterly revenue is $2.73 billion, a decrease from $2.92 billion reported in the previous year [1]. Recent Developments - On January 12, Booz Allen announced a partnership with Andreessen Horowitz aimed at accelerating and scaling advanced technology for government applications [2]. - Following the announcement, shares of Booz Allen Hamilton increased by 0.2%, closing at $95.76 [2]. Analyst Ratings - Citigroup analyst John Godyn maintained a Neutral rating and raised the price target from $93 to $109 [3]. - Jefferies analyst Howard Rubel maintained a Hold rating and reduced the price target from $100 to $95 [3]. - UBS analyst Gavin Parsons maintained a Neutral rating and lowered the price target from $115 to $93 [3]. - Goldman Sachs analyst Noah Poponak maintained a Sell rating and cut the price target from $93 to $80 [3]. - JP Morgan analyst Seth Seifman maintained an Underweight rating and decreased the price target from $122 to $90 [3].

Booz Allen Hamilton Holding Corporation (NYSE:BAH) will release earnings for its third quarter before the opening bell on Friday, Jan. 23.Analysts expect the McLean, Virginia-based company to report fourth-quarter earnings of $1.27 per share. That’s down from $1.55 per share in the year-ago period. The consensus estimate for Booz Allen Hamilton’s quarterly revenue is $2.73 billion (it reported $2.92 billion last year), according to Benzinga Pro.On Jan. 12, Booz Allen disclosed a partnership with Andreessen ...

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Neutral” zone on Thursday.U.S. stocks settled higher on Thursday, with the Dow Jones index gaining more than 300 points during the session amid easing geopolitical concerns.Sentiment turned decisively positive after Trump announced plans to suspend proposed tariffs on several European countries, citing a framework agreement reached following talks with NATO leadership.Meta Platforms I ...