Core Insights - Booz Allen Hamilton's stock fell 8.6% after missing earnings expectations and lowering guidance for fiscal Q2 2026 [1][8] - The company reported adjusted earnings of $1.49 per share on sales of $2.9 billion, below the expected $1.51 per share and just under $3 billion in sales [1][3] - GAAP earnings were significantly lower at $1.42 per share, marking a 53% year-over-year decline [3] Financial Performance - Adjusted earnings decreased by under 18%, while revenue declined by 8% [3] - The company cited a "continued funding slowdown" as a reason for weak results, particularly in its civil business, despite growth in its national security portfolio [4] - Booz Allen's full-year revenue guidance was lowered to a maximum of $11.5 billion, representing a 4% reduction and at least a 4% decline year over year [5] Future Outlook - Adjusted earnings are now expected to be no more than $5.65 per share, which is at least 9% worse than previously anticipated [6] - Free cash flow is projected to be around $900 million, leaving the stock looking relatively cheap at 12.6 times free cash flow [6] - Despite a record Q2 backlog of $40 billion and a book-to-bill ratio of 1.7x, the company’s shrinking sales may deter investor interest [5][6]