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Booz Allen Hamilton (NYSE:BAH) Faces Challenges Despite Growth in National Security Portfolio
Financial Modeling Prep· 2025-10-25 04:12
Core Insights - Booz Allen Hamilton (BAH) is a management and IT consulting firm primarily serving the U.S. government, competing with firms like Accenture and Deloitte [1] - Stifel Nicolaus set a price target of $106 for BAH, indicating a potential upside of 15.97% from its current trading price of $91.40 [1] Financial Performance - BAH's stock dropped 8.6% after reporting fiscal Q2 2026 earnings, with an adjusted profit of $1.49 per share on sales of $2.9 billion, missing expectations of $1.51 per share on nearly $3 billion in sales [2][6] - GAAP earnings fell to $1.42 per share, representing a 53% decrease from the previous year, while adjusted earnings declined by less than 18% and revenue decreased by 8% [3][6] - The company attributed weak results to a "continued funding slowdown," which was not related to the government shutdown that occurred after the quarter ended [3] Business Segments - Despite challenges, Booz Allen's national security portfolio showed solid growth, while the civil business faced difficulties contributing to the overall downturn [4][6] Stock Performance - BAH's stock is currently priced at $91.40, reflecting a decrease of approximately 8.86% [4][6] - Over the past year, the stock has seen a high of $190.59 and a low of $88.12, with a current market capitalization of approximately $11.26 billion [5] - The trading volume for the day was 8,341,547 shares on the NYSE, indicating significant investor activity following the earnings report [5]