Booz Allen Stock Declines 6.4% Since Fiscal Q2 Earnings

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]