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On its earnings call held on Oct. 23, 2026, to review its 2027 fiscal year's second quarter, which ended Sept. 30, Booz Allen (BAH -0.32%) announced that it remains on track to meet full-year financial expectations while accelerating investments in cyber and defense technology. A multiyear transition toward outcome-based contracts and proprietary products is reshaping how the government contractor delivers solutions.

That strategic pivot aims to expand profit margins and decouple revenue growth from headcount over time. Three key takeaways from management's comments highlight where the business is heading.

1. Fixed Price Contracts Drive Margin ExpansionManagement is actively shifting its contract portfolio toward firm fixed price structures, where the company agrees to deliver outcomes at a set price rather than billing for labor hours and expenses. This transition allows the business to capture higher profits as it improves operational efficiency and deploys reusable software tools across national security clients.

Within national security, our firm fixed price contract mix has increased by three percentage points year to date. This shift is creating opportunities to bring more value to our customers and improve profitability over time.
-- Kristine Martin Anderson, President and Chief Operating Officer2. Advanced Technologies Decouple Revenue From HeadcountTraditional government consulting relies heavily on adding staff to grow sales, but new software products in cybersecurity and defense tech allow the business to scale faster without matching headcount growth. Commercial betas, like the Guile counter-superintelligence tool, demonstrate how proprietary technology can generate higher-margin revenue while solving urgent threat management problems for federal clients.

We added over 300 employees in national security this quarter, and we are rapidly building our technologies, and we will be decoupling growth from headcount.
-- Kristine Martin Anderson, President and Chief Operating Officer3. National Security Backlog Offsets Civil Segment WeaknessA 20% expansion in the qualified national security pipeline reflects strong demand for defense capabilities, giving management visibility into revenue acceleration for the second half of the fiscal year. That defense momentum helps cushion temporary headwinds in the civil government portfolio, where customer procurement decisions and contract awards have faced scheduling delays.

We have significant backlog of funded work to execute on, and have aggressively scaled up our hiring. We continue to see strong demand signals across the portfolio, with our qualified pipeline and national security up more than 20% year over year compared to this time last year. Our civil business declined 15% year over year, slightly better than we guided to last quarter.
-- Troy J. Lahr, Executive Vice President and Chief Financial OfficerLooking AheadOperational momentum across defense and cybersecurity programs is building as customer demand accelerates for mission-critical technology solutions. The company relies on its deep technical domain expertise and established customer relationships, while watching contract conversion rates and award timing across civil agencies.

On the whole, we remain on track with the expectations we laid out for the fiscal year. Heading into the second half of the year, our three operating priorities are delivering excellent outcomes for our customers, driving strong business execution, and transforming and investing for growth.
-- Kristine Martin Anderson, President and Chief Operating OfficerBy embedding artificial intelligence and reusable software into core offerings, the company positions itself to capture higher-margin opportunities across federal end markets.

Certainly, as we are planning the business, as we are executing the business, our goal is to expand margins for the foreseeable future.
-- Horacio D. Rozanski, Chairman and Chief Executive OfficerThe Motley Fool has positions in and recommends Booz Allen Hamilton. The Motley Fool has a disclosure policy.

The Pentagon's AI Pivot Supercharges Defense StocksBooz Allen Hamilton NYSE: BAH said it remained on track with its fiscal 2027 expectations after reporting second-quarter revenue that declined year over year, while profitability, earnings per share and free cash flow increased.

Chairman and Chief Executive Officer Horacio Rozanski said the company faced federal budget uncertainty during the quarter but continued to see demand for advanced technology across government customers. He highlighted cybersecurity and defense technology as key growth areas, citing the need for capabilities related to artificial intelligence, autonomy, cyber defense and modernization of critical systems.

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Catching Falling Knives: Is It Time to Buy These Beaten-Down Stocks?“Booz Allen is on track with the expectations we set for this fiscal year,” Rozanski said, pointing to profitability, cash generation and continuing investment in the company’s strategic transformation.

Second-Quarter Financial Results
Revenue for the fiscal second quarter declined 3.9% from the prior year to $2.8 billion. Chief Financial Officer Troy Lahr said the reduction was largely driven by a 10.6% decline in billable expenses. Revenue excluding billable expenses, where the company generates nearly all of its profit, was down less than 1% year over year.

Booz Allen Hamilton Earnings: 3 Bullish Signals for BAH StockAdjusted EBITDA was $313 million, representing an 11.3% margin, up 10 basis points from the prior-year period. Adjusted diluted earnings per share rose 18% to $1.76, aided by profit growth, a lower share count and a lower tax rate. Lahr said adjusted EPS also benefited from a $10 million earn-out related to the company’s DARPA divestiture.

Free cash flow totaled $263 million in the quarter, supported by collections. Days sales outstanding increased 10 days year over year to 82 days. Lahr said the company expects DSO to remain elevated relative to historical levels because of the Defy acquisition, though DSO would have been slightly lower year over year excluding the effects of Defy and the recently acquired Ultra Mission Solutions business.

Second-quarter revenue: $2.8 billion, down 3.9% year over year.
Adjusted EBITDA: $313 million, with an 11.3% margin.
Adjusted diluted EPS: $1.76, up 18% year over year.
Free cash flow: $263 million.
Total backlog: Nearly $41 billion, up 2% year over year.
Funded backlog: $5.7 billion, up 5% year over year.

National Security Growth Offsets Civil Pressure
The company continued to describe its markets as bifurcated. Its national security business grew 1% year over year in the second quarter, or 6% excluding lower billable expenses. Lahr said the business has significant funded backlog to execute and that the company has increased hiring to support demand. The qualified national security pipeline was up more than 20% from a year earlier, he said.

National security funded backlog increased nearly 10%, according to Lahr. The company recorded a 1.5-times book-to-bill ratio in the quarter, benefiting from a large classified award, while trailing 12-month book-to-bill was 1.1 times.

By contrast, civil revenue declined 15% year over year. President and Chief Operating Officer Kristine Martin Anderson said the decline reflected recompetes transitioning to follow-on contracts with smaller funding levels and scope, as well as fewer new program starts. She said the company expects pressure in civil to ease in the second half, with revenue flat to slightly down sequentially in the third and fourth quarters.

Anderson said the company has largely moved through the affected recompete transitions and has no significant recompetes remaining in the fiscal year. She cited demand for agentic software development, SI-ready data platforms, cybersecurity and data systems across financial integrity, public safety, infrastructure and healthcare missions. However, she said some larger procurements continue to move to the right, delaying the timing of awards and ramp-ups.

Cyber, Defense Technology and Contracting Strategy
Rozanski emphasized that Booz Allen is investing in cyber products and defense technology as it shifts toward more technology- and solutions-driven offerings. He said the company’s Vellox agentic cyber product suite combines cyber tradecraft with proprietary technology, including a counter-SI product called Guile.

According to Rozanski, Guile reduced attack success rates by more than 95% in testing at scale and is in private beta with government and commercial customers. He cautioned that Vellox remains in an early stage, with its larger potential expected to play out over years rather than quarters.

The company acquired Ultra I&C Mission Solutions in August for $729 million, inclusive of certain adjustments. The acquisition adds software-centric, hardware-enabled defense products, particularly in command, control, communications, battle management and related areas. Lahr said Ultra is expected to deliver strong revenue growth and margins above 20%, while its contribution to the fiscal-year guidance was described as modest.

Booz Allen is also increasing its exposure to firm-fixed-price and outcome-based contracts. Anderson said the national security business’s firm-fixed-price mix increased by three percentage points year to date. Rozanski said the company expects the proportion of fixed-price and outcome-based work to continue rising, supporting the company’s goal of having profit grow faster than revenue over time.

Updated Fiscal 2027 Outlook
Booz Allen maintained its fiscal 2027 revenue outlook at $11.3 billion to $11.6 billion, representing growth of 1% to 3%. The guidance incorporates Ultra Mission Solutions and assumes national security revenue growth will accelerate in the second half, producing mid-single-digit growth for the full year.

The company raised the low end of its adjusted EBITDA forecast to a range of $1.26 billion to $1.29 billion. It also increased adjusted EPS guidance to $6.50 to $6.70, reflecting the first-quarter CVC gain, the DARPA earn-out and a lower expected tax rate. Free cash flow is now expected to be between $850 million and $925 million.

Lahr said second-half margins are expected to decline from first-half levels because of normal seasonality, lower civil volumes and investment timing. He added that the company intends to maintain a balanced capital allocation strategy, prioritizing deleveraging during the Ultra integration while continuing dividends, modest share repurchases and selective investments.

About Booz Allen Hamilton (NYSE:BAH)Booz Allen Hamilton Holding Corporation is a management and technology consulting company that provides services primarily to governments, defense and intelligence organizations, and commercial clients. The company helps organizations address complex challenges involving strategy, technology modernization, cybersecurity, data and analytics, artificial intelligence, engineering, and mission operations.

Its government-related work spans defense, national security, intelligence, civil government, and health markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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For the quarter ended September 2026, Booz Allen Hamilton (BAH - Free Report) reported revenue of $2.78 billion, down 3.9% over the same period last year. EPS came in at $1.76, compared to $1.49 in the year-ago quarter.

The reported revenue represents a surprise of -0.81% over the Zacks Consensus Estimate of $2.8 billion. With the consensus EPS estimate being $1.44, the EPS surprise was +22.22%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Booz Allen performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Total Backlog: $40.93 billion versus the two-analyst average estimate of $41.23 billion.Revenue by Customer Type-- National Security: $2.08 billion versus $2.1 billion estimated by three analysts on average.Revenue by Customer Type-- Civil and Commercial: $702 million compared to the $690.09 million average estimate based on three analysts. The reported number represents a change of -15.1% year over year.View all Key Company Metrics for Booz Allen here>>>

Shares of Booz Allen have returned +6.4% over the past month versus the Zacks S&P 500 composite's -1.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Booz Allen Hamilton (BAH - Free Report) came out with quarterly earnings of $1.76 per share, beating the Zacks Consensus Estimate of $1.44 per share. This compares to earnings of $1.49 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +22.22%. A quarter ago, it was expected that this defense contractor would post earnings of $1.49 per share when it actually produced earnings of $1.81, delivering a surprise of +21.48%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Booz Allen, which belongs to the Zacks Consulting Services industry, posted revenues of $2.78 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.81%. This compares to year-ago revenues of $2.89 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Booz Allen shares have lost about 6.9% since the beginning of the year versus the S&P 500's gain of 12%.

What's Next for Booz Allen?While Booz Allen has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Booz Allen was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.48 on $2.86 billion in revenues for the coming quarter and $6.25 on $11.45 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consulting Services is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, CRA International (CRAI - Free Report) , has yet to report results for the quarter ended September 2026. The results are expected to be released on November 5.

This consulting firm is expected to post quarterly earnings of $2.06 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

CRA International's revenues are expected to be $198.64 million, up 6.9% from the year-ago quarter.

Booz Allen Hamilton Holding Corporation (NYSE:BAH) will release its second-quarter earnings report before the opening bell on Friday, Oct. 23.

The market expects Booz Allen Hamilton (BAH - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis defense contractor is expected to post quarterly earnings of $1.44 per share in its upcoming report, which represents a year-over-year change of -3.4%.

Revenues are expected to be $2.8 billion, down 3.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Booz Allen?For Booz Allen, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +5.31%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that Booz Allen will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Booz Allen would post earnings of $1.49 per share when it actually produced earnings of $1.81, delivering a surprise of +21.48%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Booz Allen appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAmong the stocks in the Zacks Consulting Services industry, Equifax (EFX - Free Report) , is soon expected to post earnings of $2.2 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +7.8%. This quarter's revenue is expected to be $1.69 billion, up 9.6% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Equifax has been revised 0.4% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.59%, reflecting a lower Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Equifax will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

The latest trading day saw Booz Allen Hamilton (BAH) settling at $73.94, representing a +1.47% change from its previous close.

Booz Allen Hamilton is mispriced due to the market focus on its shrinking civil segment, ignoring the 71% National Security business that is growing with a record backlog. At ~$70, BAH trades at 11x forward earnings, well below its five-year average, offering a 3.3% dividend and robust FCF while awaiting a re-rating. AI disruption is a tailwind for BAH, as it is the largest provider of AI services to the US government, offsetting civil segment headwinds.

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Booz Allen Hamilton (BAH - Free Report) , which belongs to the Zacks Consulting Services industry.

This defense contractor has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 28.16%.

For the most recent quarter, Booz Allen was expected to post earnings of $1.49 per share, but it reported $1.81 per share instead, representing a surprise of 21.48%. For the previous quarter, the consensus estimate was $1.32 per share, while it actually produced $1.78 per share, a surprise of 34.85%.

Price and EPS Surprise

For Booz Allen, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Booz Allen currently has an Earnings ESP of +5.31%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on October 23, 2026.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

MCLEAN, Va.--(BUSINESS WIRE)--Booz Allen Hamilton (NYSE: BAH) today announced Michael D. Brasseur, a pioneer in the U.S. Navy's operational integration of maritime robotics, autonomy, and AI, has joined the company as an executive vice president. Brasseur will play a critical leadership role in shaping the company's defense technology business, as well as partnership and innovation strategies.A 26-year Navy veteran, Brasseur served as founding Commodore of Task Force 59, the service's first dedi.

Key Takeaways Booz Allen shares gained 17.6% in three months, outpacing its industry and the S&P 500 Composite.BAH is expanding in cyber, AI and defense technology, including its Ultra Mission Solutions acquisition.BAH's fiscal Q1 free cash flow jumped 171.9% to $261 million, supporting investments and capital returns. Booz Allen Hamilton Holding Corporation (BAH - Free Report) stock has gained 17.6% over the past three months, outperforming the industry’s 9.5% growth and the Zacks S&P 500 composite's 3.5% return.

BAH’s Three-Month Share Price Performance
                                                                       Image Source: Zacks Investment Research

Let us delve deeper into the factors that have contributed to the company’s outperformance.

BAH’s Technology Expansion Broadens Growth OpportunitiesBooz Allen is investing in cyber, artificial intelligence (AI) and defense technology to diversify beyond traditional services and create new growth avenues. Its cyber portfolio is gaining traction as AI-driven threats increase demand for faster, more advanced security solutions. The Vellox suite combines Booz Allen’s cyber expertise with Agentic AI, while Ranger helps identify and remediate network vulnerabilities at AI speed. Defy Security has further expanded the company’s end-to-end cybersecurity capabilities.

In defense technology, the August 2026 acquisition of Ultra Mission Solutions added command-and-control software, ruggedized edge computing and encryption-management products. Management expects Ultra to generate double-digit revenue growth and EBITDA margins above 20% for several years. Booz Allen is also seeing early returns from emerging technologies, including its largest pure quantum award and an AI RAN contract supporting 6G capabilities at the edge in first-quarter fiscal 2027.

BAH’s Liquidity Supports Financial FlexibilityBAH’s operating cash flow increased 136.1% year over year to $281 million in first-quarter fiscal 2027, while free cash flow rose 171.9% to $261 million, supported by collections and favorable timing. The company ended the quarter with $540 million in cash, $2 billion of total liquidity and net leverage of 2.7 times trailing adjusted EBITDA. Management expects fiscal 2027 free cash flow of $825-$925 million and believes available cash, operating cash generation and revolving-credit capacity can meet anticipated requirements. This liquidity supports continued investment in growth, acquisitions and debt service, while preserving room for dividends and share repurchases. That balanced capital allocation provides shareholders with both reinvestment-driven growth potential and ongoing capital returns.

BAH’s Consistent Capital Returns Benefit ShareholdersBAH continues to return capital through share repurchases and dividends. The company repurchased $561 million of shares in fiscal 2026 and returned another $123 million through dividends and buybacks in the first quarter of fiscal 2027. It also declared a quarterly dividend of $0.59 per share in July 2026. Healthy cash generation supports the continuation of this balanced capital-return strategy. Recurring dividends provide shareholders with a steady income stream, while repurchases can enhance per-share value over time by reducing the share count.

BAH’s Zacks Rank & Stocks to ConsiderBooz Allen currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A couple of better-ranked stocks in the broader Business Services sector are Coherent Corp. (COHR - Free Report) and EVERTEC, Inc. (EVTC - Free Report) .

Coherent carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 52.5%.

COHR beat earnings estimates in three of the trailing four quarters and matched once, delivering an average surprise of 6.2%.

EVERTEC also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 10%.

EVTC beat earnings estimates in three of the trailing four quarters and missed once, delivering an average surprise of 3.8%.

SummaryI screen U.S.-listed dividend growth stocks with 2–6% yields, strong revenue growth, and disciplined payout ratios, targeting undervalued opportunities.The final 8-stock portfolio spans Energy, Financials, Materials, Consumer Discretionary, Healthcare, and Industrials, with a weighted yield of 3.79% and 5-year dividend growth of 20.92% with a factor weight.Portfolio construction emphasizes forward P/E below 20, price to cash flow between 5x–10x, and mid/large caps with proven top-line expansion.I focus on collecting cash and selectively deploying into dividend growth ETFs, balancing yield, growth, and sector diversification. Richard Drury/DigitalVision via Getty Images

Dividend growth still on sale Although we've seen a broadening out of the market, many dividend growth funds and ETFs are no longer trading with yields that are as attractive as they were to 12-24 months ago, but there are still dividend

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Booz Allen Hamilton (BAH - Free Report) closed at $78.41 in the latest trading session, marking a -2.06% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.45% for the day. Elsewhere, the Dow lost 1.21%, while the tech-heavy Nasdaq lost 0.01%.

Shares of the defense contractor witnessed a gain of 5.68% over the previous month, beating the performance of the Business Services sector with its loss of 3.49%, and the S&P 500's loss of 2.43%.

The upcoming earnings release of Booz Allen Hamilton will be of great interest to investors. The company's earnings report is expected on October 23, 2026. The company's earnings per share (EPS) are projected to be $1.43, reflecting a 4.03% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.8 billion, indicating a 3.09% downward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.25 per share and a revenue of $11.45 billion, representing changes of -3.99% and +2.08%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Booz Allen Hamilton. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.16% increase. Right now, Booz Allen Hamilton possesses a Zacks Rank of #3 (Hold).

Investors should also note Booz Allen Hamilton's current valuation metrics, including its Forward P/E ratio of 12.82. Its industry sports an average Forward P/E of 15.84, so one might conclude that Booz Allen Hamilton is trading at a discount comparatively.

It is also worth noting that BAH currently has a PEG ratio of 4.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Consulting Services industry was having an average PEG ratio of 1.06.

The Consulting Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Booz Allen Hamilton Holding Corporation (NYSE: BAH) in the undefined quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 12,900 shares of the business services provider's stock, valued at approximately $783,000. Other hedge funds and other

MCLEAN, Va.--(BUSINESS WIRE)---- $BAH #earnings--Booz Allen will host a conference call at 8 a.m. EDT on Friday, October 23, 2026, to discuss financial results for the Second Quarter of FY27.

Continuum Advisory LLC lowered its holdings in shares of Booz Allen Hamilton Holding Corporation (NYSE:BAH – Free Report) by 96.6% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,484 shares of the business services provider’s stock after selling 42,772 shares during the period. Continuum Advisory LLC’s holdings in Booz Allen Hamilton were worth $90,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in the business. Rakuten Securities Inc. boosted its holdings in shares of Booz Allen Hamilton by 414.6% during the 2nd quarter. Rakuten Securities Inc. now owns 247 shares of the business services provider’s stock worth $26,000 after buying an additional 199 shares in the last quarter. PenderFund Capital Management Ltd. acquired a new stake in shares of Booz Allen Hamilton during the 4th quarter worth approximately $30,000. Fulcrum Asset Management LLP bought a new stake in shares of Booz Allen Hamilton in the 3rd quarter valued at $32,000. Versant Capital Management Inc lifted its position in shares of Booz Allen Hamilton by 1,122.9% during the 2nd quarter. Versant Capital Management Inc now owns 587 shares of the business services provider’s stock valued at $36,000 after acquiring an additional 539 shares during the period. Finally, Transamerica Financial Advisors LLC acquired a new position in shares of Booz Allen Hamilton during the 2nd quarter valued at $41,000. 91.82% of the stock is currently owned by institutional investors.

Booz Allen Hamilton Price Performance BAH stock opened at $72.94 on Tuesday. The company has a debt-to-equity ratio of 3.26, a quick ratio of 1.59 and a current ratio of 1.60. The business has a 50-day simple moving average of $70.52 and a two-hundred day simple moving average of $74.82. The company has a market capitalization of $8.77 billion, a P/E ratio of 11.47, a price-to-earnings-growth ratio of 3.76 and a beta of 0.36. Booz Allen Hamilton Holding Corporation has a 52-week low of $59.50 and a 52-week high of $109.10.

Booz Allen Hamilton (NYSE:BAH – Get Free Report) last issued its quarterly earnings data on Friday, July 24th. The business services provider reported $1.81 EPS for the quarter, topping the consensus estimate of $1.49 by $0.32. Booz Allen Hamilton had a return on equity of 76.71% and a net margin of 7.01%.The firm had revenue of $1.97 billion during the quarter, compared to the consensus estimate of $2.81 billion. During the same period in the prior year, the business posted $1.48 earnings per share. The company’s quarterly revenue was down 4.2% compared to the same quarter last year. Booz Allen Hamilton has set its FY 2027 guidance at 6.000-6.35 EPS. Research analysts expect that Booz Allen Hamilton Holding Corporation will post 6.33 EPS for the current fiscal year. Booz Allen Hamilton Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were given a dividend of $0.59 per share. This represents a $2.36 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend was Friday, August 14th. Booz Allen Hamilton’s dividend payout ratio (DPR) is presently 37.11%.

Analyst Ratings Changes A number of research firms have recently issued reports on BAH. Cantor Fitzgerald cut their price objective on shares of Booz Allen Hamilton from $160.00 to $140.00 and set an “overweight” rating on the stock in a research report on Thursday, July 23rd. Bank of America reduced their price objective on Booz Allen Hamilton from $90.00 to $75.00 and set an “underperform” rating for the company in a research note on Monday, July 20th. The Goldman Sachs Group lowered their target price on Booz Allen Hamilton from $74.00 to $65.00 and set a “sell” rating on the stock in a research report on Tuesday, July 14th. Citigroup cut their target price on Booz Allen Hamilton from $88.00 to $69.00 and set a “neutral” rating on the stock in a report on Wednesday, July 1st. Finally, Truist Financial decreased their price target on shares of Booz Allen Hamilton from $85.00 to $70.00 and set a “hold” rating for the company in a research note on Friday, July 10th. Three analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average price target of $83.69.

Check Out Our Latest Stock Analysis on Booz Allen Hamilton

(Free Report)

Booz Allen Hamilton Holding Corporation is a publicly traded management and technology consulting firm headquartered in McLean, Virginia. The company provides a wide range of professional services and solutions in strategy, analytics, digital transformation, engineering and cyber security. Its expertise spans from supporting federal civilian agencies to defense, intelligence and homeland security organizations, as well as select commercial industries.

Key offerings include data analytics and artificial intelligence applications, software development and modernization, systems integration, and cyber risk management.

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Booz Allen has released a new report, The Offensive Frontier: AI as the Attacker, based on its Cyber Weapon Index (CWI), whichtests the capabilities of rapidly advancing AI models and assesses how those capabilities are actively reshaping the offensive cyber threat landscape.

Booz Allen tested 18 advanced U.S. and Chinese AI models and confirmed that a leading frontier model can now autonomously execute end-to-end intrusion, from gaining initial access to taking full control of a network without human guidance. This finding marks a critical shift from AI-assisted hacking to autonomous cyber operations.

Key takeaways and recommendations from the report include:

Sophisticated attacks are becoming more accessible: As the cost, time, and expertise required to launch advanced cyberattacks collapse, capabilities once limited to nation-states and highly sophisticated actors are becoming available to criminal and non-state actors on demand.Critical infrastructure is exposed now. The report calls for enforceable, sector-specific deadlines requiring operators to demonstrate readiness against AI-enabled attacks - helping ensure the U.S. and its critical organizations can harness AI faster and more effectively than our adversaries.The model is no longer the unit of risk. The system is. When paired with attack harnesses, tools, memory, and autonomy that guides its actions, even models short of the frontier can cause significant real-world harm.Counter AI turns autonomy into a liability. The same autonomy that gives AI attackers an advantage creates vulnerabilities defenders can exploit - disrupting how autonomous systems see, trust, and act to slow attacks and regain critical action time. In Booz Allen testing, coordinated Counter AI playbooks reduced autonomous attacker success by more than 95%.To help organizations defend against these emerging threats, Booz Allen has introduced Vellox Labs™ Guile, a Counter AI product designed to disrupt autonomous attacks by shaping what AI attackers see and trust, ultimately degrading their ability to successfully execute an attack. As autonomous threats advance, Guile adapts with them, learning from real threats and leveraging the latest frontier AI models to evolve its defenses in real time and safeguard critical assets.

Looking Ahead: Countering the Threat

The rise of AI-powered attacks requires defenders to develop new ways to disrupt autonomous attacks and regain time. Booz Allen takes a unified approach to cyber defense, assessing the autonomous threat through our CWI, defining how defenders can take back control through Counter AI, and putting that approach into action through Vellox Labs™ Guile to protect mission-critical operations.

Read Booz Allen's full report here: The Offensive Frontier: AI as the Attacker

About Booz Allen Hamilton

Booz Allen is an advanced technology company. We build commercial-grade products and solutions for America’s most critical defense, civil, and national security priorities. For more information, visit www.boozallen.com. (NYSE: BAH)

BAHPR-CO

View source version on businesswire.com: https://www.businesswire.com/news/home/20260902152109/en/

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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[url="]Booz Allen Hamilton[/url] (NYSE: BAH) has completed its [url="]previously announced[/url] $720 million acquisition of the Ultra I&C Mission Solutions bus

Key Takeaways Booz Allen's government contracts, AI investments and efficiency efforts support long-term growth.BAH's fiscal 2027 revenues are expected to rise 2%, while EPS is projected to decline 4.5%.Booz Allen faces competition, pricing pressure, and lengthy bidding processes for government contracts. Booz Allen Hamilton’s (BAH - Free Report) decades-long relationship with the U.S. government remains a key strength. Its mission-critical work across defense, intelligence and cybersecurity requires high levels of trust and confidentiality, creating formidable barriers to entry. Multi-year contracts and frequent renewals provide revenue visibility and reduce exposure to broader economic volatility. These strengths have helped BAH’s revenues witness a 7.4% CAGR from fiscal 2021 through fiscal 2026.

Government Ties, AI & Efficiency Drive BAHBooz Allen continues to improve operational efficiency through cost controls, disciplined project management and workforce adjustments based on demand. Investments in digital transformation and data-driven solutions should further streamline operations while enhancing client offerings.

AI and cybersecurity provide another important growth avenue. Rising demand for secure digital infrastructure, cloud solutions and automation should create opportunities for Booz Allen to deepen its presence in government technology projects.

Shareholder returns are another positive. BAH spent $598 million on share repurchases in fiscal 2026 after $812 million in fiscal 2025. Dividend payments reached $276 million in fiscal 2026, highlighting management’s commitment to returning capital.

Muted Estimates & Competition Raise CautionNear-term estimates present a less encouraging picture. The Zacks Consensus Estimate for fiscal 2027 revenues is pegged at $11.44 billion, indicating growth of just 2%. The consensus EPS estimate of $6.22 suggests a 4.5% decline. Current-quarter revenues and EPS are expected to fall 2.8% and 2%, respectively.

Moreover, fierce competition for government contracts, lengthy bidding processes, and pricing pressure could make it difficult to balance growth and profitability. BAH’s stable government-focused business model may also limit the rapid growth sought by momentum investors.

What Should Investors Do With BAH?The outlook improves for fiscal 2028, with revenues and EPS expected to rise 4.7% and 8%, respectively. Booz Allen’s dependable contract base, AI and cybersecurity investments, operational discipline and shareholder-friendly policies support its long-term prospects. However, subdued near-term earnings expectations and competitive pressures warrant patience.

Given this balanced risk-reward picture, BAH currently carries a Zacks Rank #3 (Hold).

Stocks to ConsiderA couple of better-ranked stocks in the broader Zacks Business Services sector are Veralto Corporation (VLTO - Free Report) and Thomson Reuters Corporation (TRI - Free Report) .

Veralto Corporation carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 8.4%. VLTO delivered a trailing four-quarter earnings surprise of 6.6%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Thomson Reuters also has a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 15.3%. TRI’s earnings beat estimates in each of the trailing four quarters, with the surprise being 2.7%, on average.

Posted by Defense World Staff on Aug 4th, 2026

California State Teachers Retirement System trimmed its position in Booz Allen Hamilton Holding Corporation (NYSE:BAH – Free Report) by 27.7% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 144,921 shares of the business services provider’s stock after selling 55,432 shares during the period. California State Teachers Retirement System owned 0.12% of Booz Allen Hamilton worth $11,308,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Rakuten Securities Inc. grew its stake in Booz Allen Hamilton by 414.6% during the 2nd quarter. Rakuten Securities Inc. now owns 247 shares of the business services provider’s stock valued at $26,000 after purchasing an additional 199 shares during the last quarter. Activest Wealth Management raised its stake in shares of Booz Allen Hamilton by 141.3% in the fourth quarter. Activest Wealth Management now owns 304 shares of the business services provider’s stock worth $26,000 after purchasing an additional 178 shares during the last quarter. Torren Management LLC acquired a new stake in shares of Booz Allen Hamilton during the fourth quarter worth about $26,000. Fulcrum Asset Management LLP acquired a new stake in shares of Booz Allen Hamilton during the third quarter worth about $32,000. Finally, PenderFund Capital Management Ltd. purchased a new stake in Booz Allen Hamilton in the fourth quarter valued at approximately $30,000. Hedge funds and other institutional investors own 91.82% of the company’s stock.

Booz Allen Hamilton Price Performance Shares of NYSE BAH opened at $71.24 on Tuesday. The company has a debt-to-equity ratio of 3.26, a current ratio of 1.60 and a quick ratio of 1.59. The stock has a market capitalization of $8.57 billion, a price-to-earnings ratio of 11.20, a PEG ratio of 3.62 and a beta of 0.34. The firm’s 50 day simple moving average is $69.59 and its 200-day simple moving average is $77.23. Booz Allen Hamilton Holding Corporation has a 12 month low of $59.50 and a 12 month high of $114.48.

Booz Allen Hamilton (NYSE:BAH – Get Free Report) last posted its earnings results on Friday, July 24th. The business services provider reported $1.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.49 by $0.32. The firm had revenue of $1.97 billion during the quarter, compared to analysts’ expectations of $2.81 billion. Booz Allen Hamilton had a net margin of 7.01% and a return on equity of 76.71%. The business’s revenue was down 4.2% compared to the same quarter last year. During the same period in the previous year, the business posted $1.48 EPS. Booz Allen Hamilton has set its FY 2027 guidance at 6.000-6.35 EPS. Analysts expect that Booz Allen Hamilton Holding Corporation will post 6.3 EPS for the current year.

Booz Allen Hamilton Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be given a $0.59 dividend. The ex-dividend date is Friday, August 14th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 3.3%. Booz Allen Hamilton’s dividend payout ratio is 37.11%.

Wall Street Analyst Weigh In BAH has been the topic of several research reports. Cantor Fitzgerald cut their price target on shares of Booz Allen Hamilton from $160.00 to $140.00 and set an “overweight” rating on the stock in a report on Thursday, July 23rd. TD Cowen dropped their price objective on shares of Booz Allen Hamilton from $85.00 to $70.00 and set a “hold” rating on the stock in a report on Tuesday, July 7th. Citigroup cut their price objective on shares of Booz Allen Hamilton from $88.00 to $69.00 and set a “neutral” rating on the stock in a research note on Wednesday, July 1st. JPMorgan Chase & Co. reduced their target price on shares of Booz Allen Hamilton from $97.00 to $85.00 and set an “underweight” rating for the company in a report on Tuesday, May 26th. Finally, The Goldman Sachs Group decreased their target price on shares of Booz Allen Hamilton from $74.00 to $65.00 and set a “sell” rating for the company in a research report on Tuesday, July 14th. Three equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Reduce” and an average target price of $84.08.

View Our Latest Research Report on BAH

Booz Allen Hamilton Profile (Free Report)

Booz Allen Hamilton Holding Corporation is a publicly traded management and technology consulting firm headquartered in McLean, Virginia. The company provides a wide range of professional services and solutions in strategy, analytics, digital transformation, engineering and cyber security. Its expertise spans from supporting federal civilian agencies to defense, intelligence and homeland security organizations, as well as select commercial industries.

Key offerings include data analytics and artificial intelligence applications, software development and modernization, systems integration, and cyber risk management.

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Key Takeaways BAH trades at 10.91X forward earnings, with a 0.73 PEG ratio and a 0.72 price-to-sales ratio.Backlog reached $39.48 billion, while free cash flow surged 171.9% to $261 million.Civil revenues fell 16.4%, while debt, leverage and acquisition execution temper the stock's appeal. Booz Allen Hamilton Holding Corporation (BAH - Free Report) offers a mixed investment setup. Its valuation is discounted, cash generation is improving and government demand remains recurring, but weak Civil revenues and modest near-term growth limit the appeal.

The central question is whether the current price already compensates investors for uneven execution. The numbers support patience rather than a decisive buy or sell call.

BAH’s Low Multiples Strengthen the Value CaseBAH trades at 10.91X forward earnings, with a PEG ratio of 0.73 and a price-to-sales ratio of 0.72. Each measure is below the corresponding consulting-industry and broader-market benchmark, giving valuation-focused investors a clear reason to examine the stock.

Image Source: Zacks Investment Research

Image Source: Zacks Investment Research

The discount is meaningful because it spans earnings, expected growth and revenues rather than relying on one metric. Science Applications International Corporation (SAIC - Free Report) , another government technology integrator serving defense, space, intelligence and civilian markets, provides a useful peer reference for assessing how investors price federal-services exposure.

Uneven Revenue Growth Keeps BAH in CheckFiscal first-quarter revenues declined 4.2% year over year to $2.8 billion even as adjusted earnings increased 22.3% to $1.81 per share. Margin improvement and contract execution supported profits, but the top line remained under pressure.

National Security revenues rose 1.3% to $2.03 billion, showing resilience in the company’s largest customer group. Civil and Commercial revenues fell 16.4% to $772 million, demonstrating why stronger earnings do not remove growth concerns.

Backlog and Cash Flow Support BAH’s OutlookTotal backlog reached $39.48 billion and the quarterly book-to-bill ratio was 1.5X. Those figures indicate that awards exceeded quarterly revenues and provide visibility into work that may convert into future sales.

Free cash flow climbed 171.9% to $261 million, helped by strong collections. Leidos Holdings, Inc. (LDOS - Free Report) also operates across national security, health and critical infrastructure, underscoring the recurring-contract and mission-demand characteristics that can support cash generation in this market.

Debt and Execution Risks Temper BAH’s AppealBAH carried total debt of $3.94 billion, a net leverage ratio of 2.7 and a debt-to-capital ratio of 76.5%. Those levels reduce flexibility if operating conditions weaken or investment returns take longer to develop.

The company must also integrate acquisitions, fund strategic initiatives and preserve margins while bidding competitively for government work. The Defy Security acquisition and planned Ultra Mission Solutions transaction can expand capabilities, but they add integration and capital-allocation demands.

BAH’s Guidance Sets a Modest Growth BarManagement maintained fiscal 2027 revenue guidance of $11.2 billion to $11.7 billion, implying growth of 0% to 4%. The range reflects a cautious sales outlook and assumes stronger performance later in the year.

Adjusted earnings are projected at $6.00 to $6.35 per share, with adjusted EBITDA of $1.24 billion to $1.29 billion and a margin of about 11%. Meeting those targets will require National Security momentum and profitability to offset continued Civil weakness.

BAH’s Rank and Style Scores Point to PatienceThe bottom line is that BAH’s low valuation, backlog and cash flow create a credible value case, but uneven revenues, leverage and acquisition execution argue against treating the discount as an automatic buying signal.

BAH currently carries a Zacks Rank #3 (Hold), which supports a measured stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A strengthen the stock’s fundamental and trading profile, yet the neutral rank suggests that waiting for clearer revenue execution may be prudent.

Booz Allen Hamilton Holding Corporation (NYSE: BAH) (“Booz Allen”) announced that its wholly-owned subsidiary, Booz Allen Hamilton Inc. (the “Issuer”),

Key Takeaways BAH's adjusted EPS rose 22.3% y/y to $1.81, while revenues fell 4.2% y/y to $2.80 billion.The adjusted EBITDA margin expanded 130 basis points, lifting adjusted EBITDA by 7.4% y/y to $334 million.National Security grew 1.3% y/y, but Civil and Commercial revenues declined 16.4% y/y. Booz Allen Hamilton Holding Corporation (BAH - Free Report) reported first-quarter fiscal 2027 adjusted earnings of $1.81 per share, which beat the Zacks Consensus Estimate by 21.5% and rose 22.3% year over year, driven by stronger profitability, a lower tax rate, a reduced share count and an unrealized investment gain.

Revenues of $2.80 billion matched the consensus estimate but declined 4.2% year over year. The top line reflected continued weakness in Civil, while National Security grew. The quarterly book-to-bill ratio was 1.5X.

The reported results did not impress investors. Moreover, the absence of second-quarter guidance and weak fiscal 2027 guidance disappointed the market, as the stock has declined 1.2% since the earnings release on July 24.

Booz Allen guided fiscal 2027 adjusted earnings to be between $6.00 and $6.35 per share, with the midpoint of $6.175 being lower than the Zacks Consensus Estimate of $6.20 per share.

The company’s fiscal 2027 revenue guidance ranges from $11.2 billion to $11.7 billion, implying 0-4% growth. However, the midpoint ($11.45 billion) of the guided range is lower than the Zacks Consensus Estimate of $11.46 billion.

BAH's Margins Expand on Contract ExecutionAdjusted EBITDA increased 7.4% year over year to $334 million. The adjusted EBITDA margin expanded 130 basis points to 11.9%, reflecting improved contract execution, favorable timing of investment spending and early shifts toward outcomes-based fixed-price work.

Adjusted net income rose 17.9% to $217 million. The quarter also included a $19 million pretax unrealized gain on a venture investment, which supported adjusted earnings growth alongside a lower tax rate and a reduced share count.

Booz Allen's National Security Business AdvancesNational Security revenues increased 1.3% year over year to $2.03 billion. Management cited healthy demand, improving funding and stronger hiring activity as the company ramps up new work across defense, intelligence, cyber and advanced technology missions.

Civil and Commercial revenues fell 16.4% to $772 million. The decline reflected prior-year contract reductions, lower Treasury-related work, fewer new program starts and smaller follow-on contracts. Management expects another sequential double-digit decline in Civil revenues in the second quarter before pressures begin to ease later in the year.

BAH's Backlog Signals Improving FundingFunded backlog increased 15.2% year over year to $4.66 billion, while total backlog rose 3.2% to $39.48 billion. The trailing 12-month book-to-bill ratio was 1.1X.

The company also reported that funding increased 17% year over year in the quarter. Its pipeline of other transaction authority opportunities, which can provide faster and more flexible government procurement, grew 18%. Fixed-price contracts represented 21% of revenues, up from 18% a year earlier.

Booz Allen Steps Up Strategic InvestmentBooz Allen deployed $447 million in capital during the quarter. Of this amount, $324 million went toward the Defy acquisition and venture investments, while $123 million was returned to shareholders through dividends and share repurchases.

The company expects to close its acquisition of Ultra I&C Mission Solutions in the second quarter. Management believes the transaction will broaden its defense technology portfolio across command-and-control software, ruggedized edge computing and encryption management.

BAH Generates Robust Cash FlowNet cash provided by operating activities increased 136.1% year over year to $281 million. Free cash flow surged 171.9% to $261 million, supported by strong collections and favorable timing.

BAH ended the quarter with $540 million in cash and $2.0 billion in total liquidity. Total debt was $3.94 billion, while the net leverage ratio was 2.7X. Days sales outstanding increased seven days to 80 due to the revenue-recognition profile of the Defy business.

Booz Allen’s Other Fiscal 2027 OutlookAdjusted EBITDA is projected between $1.24 billion and $1.29 billion, with an adjusted EBITDA margin of approximately 11%.

Free cash flow is forecasted to be between $825 million and $925 million. Management continues to expect growth to be weighted toward the second half, with National Security accelerating as new work ramps up.

The company expects second-quarter growth and profitability to face pressure from Civil contract roll-offs and the end of some higher-margin programs. It anticipates backloaded investment spending while maintaining a cautious view of the government funding and award environment.

Currently, Booz Allen carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings SnapshotsWaste Connections, Inc. (WCN - Free Report) reported impressive second-quarter 2026 results. WCN’s adjusted earnings of $1.50 per share outpaced the consensus mark by 11.1% and rose 16.3% from the year-ago quarter. WCN’s total revenues of $2.56 billion surpassed the consensus mark by 1.1% and increased 6.4% year over year.

Rollins, Inc. (ROL - Free Report) posted unimpressive second-quarter 2026 results. ROL’s adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate by 5.9% but rose 6.7% year over year. Total revenues of $1.08 billion fell short of the consensus estimate by 1.7% but increased 7.9% from the year-ago quarter.

MCLEAN, Va.--(BUSINESS WIRE)--Booz Allen Hamilton (NYSE: BAH) today announced an expansion of its powerful suite of AI-powered cyber defense products. Now generally available, Vellox Ranger™ provides automated, environment-specific threat detections—developed on Booz Allen's proprietary agentic AI framework—that identify exploitable paths and vulnerabilities based on the actual state of an enterprise's infrastructure. This automation helps protect the systems that matter most and reduces the ri.

Booz Allen Hamilton Holding Corporation (BAH) Q1 2027 Earnings Call July 24, 2026 8:00 AM EDT

Company Participants

Dustin Darensbourg - Director & Head of Investor Relations
Horacio Rozanski - CEO & Chair
Kristine Anderson - COO & President
Troy Lahr - Executive VP & CFO

Conference Call Participants

Jonathan Siegmann - Stifel, Nicolaus & Company, Incorporated, Research Division
Colin Canfield - Cantor Fitzgerald & Co., Research Division
Gavin Parsons - UBS Investment Bank, Research Division
Louie Dipalma - William Blair & Company L.L.C., Research Division
Scott Mikus - Melius Research LLC
Matthew Akers - BNP Paribas, Research Division
Seth Seifman - JPMorgan Chase & Co, Research Division
Tobey Sommer - Truist Securities, Inc., Research Division
Sheila Kahyaoglu - Jefferies LLC, Research Division
John Godyn - Citigroup Inc., Research Division

Presentation

Operator

Good morning. Thank you for standing by, and welcome to Booz Allen Hamilton's Earnings Call covering First Quarter Fiscal Year 2027 Results. [Operator Instructions] I'd now like to turn the call over to the Head of Investor Relations, Dustin Darensbourg. Please go ahead.

Dustin Darensbourg
Director & Head of Investor Relations

Good morning, and thank you for joining us for Booz Allen's First Quarter Fiscal Year 2027 Earnings Call. We hope you've had an opportunity to read the press release we issued earlier this morning. We have also provided presentation slides on our website and are now on Slide 2. With me today to talk about our business and financial results are Horacio Rozanski, our Chairman and Chief Executive Officer; Kristine Martin Anderson, President and Chief Operating Officer; and Troy Lahr, Executive Vice President and Chief Financial Officer.

As shown in the disclaimer on Slide 3, some of the items we will discuss this morning are forward-looking and may relate to future events and as such, involve known and unknown risks, uncertainties and other factors that may cause our actual results