BAH stock beats Q3 EPS estimates but misses on revenues, trims FY26 sales outlook, and shares dip 8.1% after the Jan. 23 earnings release.
BAH's government contracts, AI and cybersecurity investments support steady growth, but rising costs and competition weigh on profitability.
Booz Allen Hamilton Holding Corporation faced a negative market reaction after the Treasury ended IRS contracts due to a data breach, highlighting increased scrutiny and lower risk tolerance in federal procurement. Gross revenue declined 10% year-over-year to $2.6 billion, with a $50 million revenue and $20 million profit impact expected for the fiscal year, mainly from timing issues and the government shutdown. Despite a 28% drop in the Civil segment, BAH ended the year with a record $38 billion backlog and a $53 billion qualified pipeline for FY2027, signaling improving award activity.
The U.S. Treasury Department has cut its contracts with Booz Allen Hamilton, after a former contractor who worked for the firm was charged and subsequently imprisoned for leaking tax information to news outlets about thousands of the country's wealthiest people, including President Donald Trump.
Littlejohn pleaded guilty to stealing and leaking tax returns from Trump and “thousands” of other wealthy individuals. According to the Justice Department, Littlejohn used “broad search parameters” to evade detection.
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.
Booz Allen Hamilton Holding Corporation (BAH) Q3 2026 Earnings Call Transcript
While the top- and bottom-line numbers for Booz Allen (BAH) give a sense of how the business performed in the quarter ended December 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
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.
Booz Allen Hamilton raised its profit outlook for the fiscal year as its cost-saving efforts, prompted by the Trump administration's cuts to government-contract funding for consultants, began to boost its bottom line.
Booz Allen Hamilton CEO Horacio Rozanski details the company's new partnership with Andreessen Horowitz to bring cutting-edge commercial tech in A.I., autonomy and electronic warfare to U.S. government.
Markets have a habit of throwing babies out with the bathwater.