BAH

Maximus, Inc. MMS faces near-term earnings reset after a temporary change to a major federal contract removed a meaningful profitability contributor for the second half of fiscal 2026. The central issue for investors is whether that setback stays temporary or underscores the company’s sensitivity to large government programs, even as other operating improvements provide some support. The Department of Veterans Affairs paused performance incentives and disincentives tied to the Medical Disability Exam program from July 1 through Dec. 31, 2026. The mechanism rewards vendors based on measures such as timeliness, accuracy and quality. Those incentives contributed about 35 cents per share in each of the first three quarters of fiscal 2026. Their removal therefore takes away a material earnings benefit in the fourth quarter and is also expected to affect the first quarter of fiscal 2027 while the pause remains in place. Maximus lowered fiscal 2026 adjusted earnings guidance to $7.90-$8.20 per share from $8.25-$8.55. The midpoint declined by 35 cents, matching the approximate quarterly contribution from the paused VA incentives. Adjusted EBITDA margin guidance fell to about 13.7% from 14.2%. Free cash flow guidance was also reduced to $425-$475 million, showing that the contract changes affects both earnings expectations and cash-generation assumptions, even though full-year revenue guidance remained $5.2-$5.35 billion. Image Source: Zacks Investment Research U.S. federal agencies generated 55% of Maximus’ fiscal 2025 revenues, compared with nearly 32% from U.S. state agencies and almost 11% from foreign governments. That mix provides scale and recurring demand but can magnify the impact of contract changes, procurement delays and agency-specific decisions. The sensitivity is familiar across federal-services peers. Booz Allen Hamilton Holding Corporation BAH says it depends on U.S. government contracts for substantially all of its revenues. Leidos Holdings, Inc. LDOS identifies the U.S. government as its largest customer and serves agencies including the Department of Veterans Affairs. U.S. Services is moving in a more favorable direction. Third-quarter operating margin improved to 10.8% from 10.2% a year earlier, and management expects positive mid-single-digit organic revenue growth in the fourth quarter, with positive organic growth continuing into fiscal 2027. Technology is another offset. Maximus said third-quarter adjusted EBITDA margin of 15.0% reflected automation and AI-enabled efficiencies, while management cited broader use of efficiency-enhancing technology across programs. These gains can support profitability, but they do not immediately replace the earnings contribution lost from the paused VA incentives. The contract modification looks temporary based on current customer guidance, but it has already reduced fiscal 2026 earnings and cash flow expectations. That makes the pace of any incentive reinstatement, along with execution in U.S. Services and federal procurement timing, important variables for the next phase of earnings momentum. MMS currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Maximus carries a VGM Score of A, Value Score of A, Growth Score of B and Momentum Score of B. The favorable Style Scores point to noteworthy valuation, growth and momentum characteristics, but the Zacks Rank reflects weakening earnings estimate revisions and therefore argues for caution in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Maximus, Inc. (MMS) : Free Stock Analysis Report Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Booz Allen Hamilton Holding stock has fallen 36.1% over the past three years, yet the latest valuation checks suggest the shares now screen as cheap rather than expensive. Recent earnings strength and product developments have brought fresh attention to whether that weak long term share price performance aligns with where the business is priced today. The 36.1% decline over three years leaves Booz Allen Hamilton trading well below where longer term holders bought in. This can create room for a valuation reset if fundamentals hold up. Recent earnings resilience and expansion of AI powered cyber defense products may support confidence in future cash flows, while new debt to fund acquisitions adds financial risk that investors need to factor into what they are willing to pay. Booz Allen Hamilton scores 5 out of 6 on the valuation checks, which points to a stock that broadly screens as undervalued on the core measures used in this framework. For investors, the debate is whether the current price around recent levels already reflects the operational progress, or if Booz Allen Hamilton still offers a margin of safety based on those valuation checks. Find out why Booz Allen Hamilton Holding's -32.2% return over the last year is lagging behind its peers. The P/E ratio is a useful cross check for Booz Allen Hamilton because earnings are a key focus for investors after the recent earnings beat. The stock currently trades at about 11.5x earnings, which is well below the Professional Services industry average of 22.3x and the peer group average of 20.4x. On this basic comparison, investors are paying a lower price for each dollar of Booz Allen Hamilton earnings than for many sector peers. The fair P/E multiple from this framework is 17.5x. This reflects what investors might pay given Booz Allen Hamilton Holding earnings profile, business mix and risk. That is still meaningfully higher than the current 11.5x, so the shares screen at a discount even after the strong Q1 fiscal 2027 results and the share price jump reported in late July 2026. On these figures, the market multiple suggests earnings are not fully reflected in the current valuation. On the P/E measure, Booz Allen Hamilton stock currently looks undervalued relative to both its tailored fair multiple and the wider Professional Services industry. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the valuation puzzle for Booz Allen Hamilton Holding leaves off and set out which paths for growth, margins and earnings would need to occur for the stock to be worth materially more or less than it is today on the market. Rather than relying on a single multiple or model output, each Narrative explains the assumptions behind its view of fair value so you can compare those to Booz Allen Hamilton Holding's actual results as they are reported. The community is split on Booz Allen Hamilton, with one camp pointing to defense AI and cash generation while the other worries about contract risk and automation. Bull case: 7% undervalued Read the full Bull Case to see why Booz Allen Hamilton Holding could be undervalued Bear case: 7% overvalued Read the full Bear Case to see why Booz Allen Hamilton Holding could be overvalued Do you think there's more to the story for Booz Allen Hamilton Holding? Head over to our Community to see what others are saying! Booz Allen Hamilton now screens as undervalued on market multiples, with investors paying less for its earnings than for many industry peers. The broader valuation checks are supportive, which means the current discount looks more like a live debate than a clear red flag. From here, the key question is whether earnings durability and cash generation outweigh concerns about contract risk, automation and higher leverage. The crux for investors is whether that discount reflects a genuine opportunity in Booz Allen Hamilton or whether the market is correctly pricing in those risks as a potential value trap. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BAH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Booz Allen Hamilton’s second quarter results were received positively by the market, despite a year-over-year revenue decline that fell slightly short of Wall Street’s expectations. Management attributed the quarter’s profitability to disciplined execution, improved contract performance, and early benefits from a shift toward outcome-based fixed price contracts. CEO Horacio Rozanski emphasized that, while the macro environment remains dynamic, the company’s focus on cyber and defense technology—especially the rapid rollout of its Agentic AI-powered Vellox cyber suite—drove solid operational results. COO Kristine Martin Anderson also highlighted continued momentum in the national security segment and noted that the civil business faced near-term headwinds from contract roll-offs and fewer new program starts. Is now the time to buy BAH? Find out in our full research report (it’s free). Revenue: $2.8 billion vs analyst estimates of $2.82 billion (4.2% year-on-year decline, 0.5% miss) Adjusted EPS: $1.81 vs analyst estimates of $1.48 (21.9% beat) Adjusted EBITDA: $334 million vs analyst estimates of $303 million (11.9% margin, 10.2% beat) Operating Margin: 10%, up from 8.8% in the same quarter last year Market Capitalization: $8.22 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jonathan Siegmann (Stifel) asked about the company’s approach to guidance given funding uncertainties. CEO Horacio Rozanski described the outlook as “cautious optimism,” citing strong indicators but emphasizing the need to monitor Congressional actions. Colin Canfield (Cantor) questioned the mix of funded bookings between national security and civil, and how portfolio shaping would impact future growth. Anderson confirmed balanced funding increases and highlighted quantum and AI RAN investments as new growth drivers. Gavin Parsons (UBS) inquired if the rise in funded backlog was driven by any one-time factors. CFO Troy Lahr clarified there was no pull-forward, attributing it to an improving environment and clean execution. Matthew Akers (BNP Paribas) sought clarity on the impact of the shift to fixed price contracts on margins and risk management. Anderson explained that while the transition is underway, it’s too early to quantify the mix change, but the company is planning for a larger proportion of such contracts. Sheila Kahyaoglu (Jefferies) asked about the drivers of implied growth in the backlog and whether any single program would influence revenue. Lahr responded that the strength was broad-based, highlighting diversification across the portfolio rather than reliance on one award. In the coming quarters, our team will be watching (1) the pace at which Booz Allen Hamilton successfully integrates and scales the Ultra Mission Solutions acquisition, (2) the company’s ability to accelerate hiring to meet national security contract demand, and (3) progress in expanding the Vellox cyber suite and quantum offerings. Execution on fixed price contracting and continued strength in funded backlog will also be important signposts. Booz Allen Hamilton currently trades at $68.28, up from $65.87 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Booz Allen Hamilton Holding Corporation BAH 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 Hamilton Holding Corporation price-consensus-eps-surprise-chart | Booz Allen Hamilton Holding Corporation Quote 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. Adjusted 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. National 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. Funded 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 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. Net 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. Adjusted 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. Waste Connections, Inc. WCN 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 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report Waste Connections, Inc. (WCN) : Free Stock Analysis Report Rollins, Inc. (ROL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management reported results consistent with May expectations, characterized by strong execution in a dynamic macro environment where National Security and Civil portfolios follow different trajectories, despite a 4.2% year-over-year decline in total revenue. Performance in the National Security sector remained positive with 1% growth, while the Civil sector faced anticipated headwinds and a 16% decline related to contract roll-offs and smaller recompete scopes. The company is aggressively pivoting toward high-growth vectors, specifically Agentic AI in cyber and advanced warfighting solutions in defense tech, to maintain a competitive advantage. Strategic positioning is being bolstered by the pending acquisition of Ultra I&C Mission Solutions, intended to scale the Defense Tech product line and accelerate C3BM and autonomy capabilities. Management attributes margin strength to improved contract execution, favorable investment timing, and early benefits from the government's shift toward outcome-based fixed-price contracting. The market environment remains uneven due to midterm election cycle uncertainties and procurement reforms that prioritize fixed-price models, potentially causing near-term award delays. Full-year guidance remains reaffirmed with an expectation of back-half weighted growth as new National Security work ramps up and Civil headwinds gradually ease. Management assumes a step down in margins for the remainder of the year, targeting approximately 11%, due to the conclusion of high-margin civil programs and backloaded investment spending. The guidance methodology remains cautious regarding the second half due to potential funding uncertainties stemming from the midterm election and the federal budget process. The Ultra Mission Solutions acquisition is expected to close in the second quarter, with financial impacts to be integrated into the formal guidance update in October. Strategic initiatives focus on accelerating hiring for cleared personnel to address supply constraints and meet the growing demand in the National Security portfolio. The acquisition of Defy was described as having a neutral top-line impact as it was offset by strategic divestitures of non-core portfolio segments. Adjusted EPS benefited from a $19 million pretax unrealized gain on a venture investment, reflecting the success of the company's corporate venture capital strategy. Days Sales Outstanding (DSO) increased to 80 days and is expected to remain elevated relative to historical levels due to revenue recognition treatment associated with the Defy business. Management flagged potential near-term award delays as government customers adjust to new procurement reforms making fixed-price contracts the default approach. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated that Agentic AI has fundamentally changed the threat environment, making offensive attacks faster and more persistent. Booz Allen is positioning its Vellox suite and Zero Trust capabilities to capture demand as organizations seek defenses that can match the speed of autonomous threats. The Civil segment is in a transition year, facing tough comparisons due to prior year contract reductions and an anemic award environment in the previous fiscal year. While a sequential decline is expected in Q2, management pointed to strengthening leading indicators and a growing pipeline as drivers for improvement later in the year. The acquisition is intended to provide a proven product portfolio in command and control, ruggedized edge compute, and encryption management. Management expects the deal to accelerate their Defense Tech growth vector by combining portfolios and sales channels to bring differentiated products to market faster. Management welcomes the shift, noting it provides more flexibility in delivery and creates opportunities for stronger financial performance through operational efficiency. They cautioned that the transition will not happen overnight as existing contracts must roll over and customers must adjust their buying structures.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Booz Allen Hamilton Holding (NYSE:BAH) reported Q1 fiscal 2027 earnings that beat expectations. Margins improved, supported by backlog growth in the National Security division. The company reported revenue declines in its Civil and Commercial segments in the same period. Management reaffirmed fiscal 2027 guidance, which helped renew investor confidence. For investors watching Booz Allen Hamilton Holding, this update shifts the focus back to the underlying business after a period of share price pressure. The stock last closed at $72.53 and is up 11.2% over the past week and 15.7% over the past month, although it remains down 14.6% year to date and 34.1% over the past year. In this context, the Q1 fiscal 2027 performance in National Security stands out as an important driver of sentiment. The reaffirmed guidance and margin improvements provide additional information about how Booz Allen Hamilton is managing its mix of higher growth National Security work and weaker Civil and Commercial activity. A key consideration from here is how durable the current backlog and earnings profile in National Security will be if conditions in other segments stay softer. This article examines what the latest results might indicate for the risk and return characteristics of NYSE:BAH at its current share price. Stay updated on the most important news stories for Booz Allen Hamilton Holding by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Booz Allen Hamilton Holding. See which insiders are buying and buying and selling Booz Allen Hamilton Holding following this latest news. ✅ Price vs Analyst Target: At US$72.53 versus a US$84.00 analyst target, Booz Allen Hamilton trades about 14% below consensus. ✅ Simply Wall St Valuation: Shares are flagged as trading 51.9% below the platform's estimated fair value, suggesting a wide valuation gap. ✅ Recent Momentum: The stock is up 15.7% over 30 days, indicating a sharp rebound after earlier weakness. There's only one way to know the right time to buy, sell or hold Booz Allen Hamilton Holding. Head to Simply Wall St's company report for the latest analysis of Booz Allen Hamilton Holding's Fair Value. 📊 Q1 fiscal 2027 margin improvement and National Security backlog growth support the earnings side of the story at the current price. 📊 Watch how National Security awards, Civil and Commercial revenue trends, and margins track against the reaffirmed fiscal 2027 guidance. ⚠️ The flagged high debt level and softer Civil and Commercial segments are important when assessing the resilience of Booz Allen Hamilton's cash flows. For the full picture including more risks and rewards, check out the complete Booz Allen Hamilton Holding analysis. Alternatively, you can check out the community page for Booz Allen Hamilton Holding to see how other investors believe this latest news will impact the company's narrative. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BAH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Booz Allen Hamilton Holding Corporation? Here are five stocks we like better. Revenue fell 4.2% to $2.8 billion in Q1 fiscal 2027, as a 1% rise in national security revenue was offset by a 16% drop in civil revenue. Even so, Booz Allen said profitability and cash flow beat expectations and it reaffirmed full-year guidance. Backlog and funding improved, with funded backlog up 15% to $4.7 billion, total backlog up 3% to over $39 billion, and book-to-bill at 1.5x for the quarter. Management said demand is strengthening, especially in national security, though hiring remains constrained by the need for cleared personnel. Cyber and defense technology remain key growth drivers as Booz Allen expands offerings in agentic AI, zero-trust, command-and-control software, and edge computing. The company also expects to close its Ultra I&C Mission Solutions acquisition in Q2, which it says should add strong growth and margin potential. The Pentagon's AI Pivot Supercharges Defense Stocks Booz Allen Hamilton (NYSE:BAH) reported first-quarter fiscal 2027 revenue of $2.8 billion, down 4.2% from a year earlier, as growth in its national security portfolio was offset by continued weakness in civil work. The government-services company said profitability and cash flow exceeded its expectations and reaffirmed its full-year guidance. Adjusted EBITDA rose to $334 million, producing an adjusted EBITDA margin of 11.9%, up 130 basis points year over year. Adjusted diluted earnings per share increased 22% to $1.81. Chief Financial Officer Troy Lahr said earnings benefited from profit growth, a lower tax rate, fewer shares outstanding and a $19 million pretax unrealized gain on a venture investment. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Catching Falling Knives: Is It Time to Buy These Beaten-Down Stocks? Free cash flow was $261 million in the quarter, supported by strong collections and favorable timing, according to Lahr. Days sales outstanding increased by seven days year over year to 80 days, which the company attributed to revenue-recognition treatment related to its Defy business. Booz Allen expects DSO to remain above its historical level. National security revenue grew 1% year over year in the first quarter, while civil revenue declined 16%. Lahr said the company expects national security revenue to grow at a mid-single-digit rate for the full fiscal year, with stronger growth in the second half as new work ramps up. → GE Vernova Just Sent a Mixed AI Signal to Investors Booz Allen Hamilton Earnings: 3 Bullish Signals for BAH Stock Civil revenue continued to face pressure from the roll-off of larger contracts, prior contract reductions, Treasury-related impacts and fewer new program starts after a slower award environment last year. The company also said some recompete awards are transitioning to follow-on contracts with smaller scopes and shorter performance periods. Booz Allen expects another sequential double-digit decline in civil revenue in the second quarter as additional contracts end, though management expects those pressures to ease gradually in the second half. President and COO Kristine Martin Anderson said the company still expects civil revenue to decline by a high-single-digit percentage for the year, an improvement from the prior year. → D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? “Demand is strengthening, and we are winning work,” Anderson said of the civil portfolio, pointing to an expanding pipeline and efforts to bring the company’s cyber and defense technology solutions into civil agencies. Funding trends improved during the quarter. Chairman and CEO Horacio Rozanski said funding was up 17% year over year, while Anderson said funding rose about 18% in both civil and national security. Funded backlog increased 15% to $4.7 billion, while total backlog rose 3% to more than $39 billion. The company’s book-to-bill ratio was 1.5 times in the quarter and 1.1 times on a trailing 12-month basis. National security funded backlog increased 23%, and management said it is accelerating hiring to support anticipated growth. Anderson noted that the company is facing some supply constraints in recruiting personnel with security clearances. Management said the market remains uneven despite improving funding. Rozanski cited the midterm election year, potential continuing resolutions, the National Defense Authorization Act, possible reconciliation legislation and potential supplemental funding as factors that could affect the government funding environment later in the year. The company is also preparing for a government push toward fixed-price and outcomes-based contracts. Anderson said recent guidance directs agencies to use firm fixed-price contracting as the default for new contracts unless an exception is approved. Booz Allen welcomed the shift, saying it could improve alignment between costs, accountability and mission results while offering more flexibility in delivery. “Early indications are positive,” Rozanski said, while adding that the transition will take time because existing contracts do not convert immediately. Lahr said the company’s first-quarter profitability benefited in part from early shifts toward outcomes-based fixed-price contracting. Anderson also said Booz Allen’s pipeline of other transaction authority opportunities increased 18% year over year. The company has been placing technology offerings on government marketplaces including Tradewind, Aeris and Platform One, which management said can provide faster procurement channels. Rozanski highlighted cyber and defense technology as the company’s primary growth vectors. He said agentic artificial intelligence is changing the cyber threat environment by enabling more autonomous attacks and that Booz Allen is expanding Vellox, its suite of agentic cyber products. He cited the company’s zero-trust capabilities and its Ranger product, which is designed to help organizations identify and remediate vulnerabilities at AI speed. In defense technology, the company is focusing on command-and-control software, edge computing, resilient communications and autonomy. Booz Allen expects to close its acquisition of Ultra I&C Mission Solutions during the second quarter. The business brings products spanning command-and-control software, ruggedized edge computing and encryption management. Lahr said Ultra is expected to deliver strong double-digit revenue growth for the next several years and EBITDA margins above 20%, though he did not provide a revenue run rate. Booz Allen plans to update guidance after the transaction closes. The company deployed $447 million during the quarter, including $324 million for the Defy acquisition and venture investments, along with $123 million for dividends and share repurchases. It ended the quarter with $540 million in cash, $2 billion in total liquidity and net leverage of 2.7 times trailing-12-month adjusted EBITDA. Booz Allen said it will continue pursuing a balanced capital-allocation strategy, including shareholder returns, venture investments and acquisitions that can accelerate its cyber and defense technology businesses. 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. 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]. The article "Booz Allen Hamilton Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Revenue: Declined 4.2% year-over-year to $2.8 billion. Revenue ex-billable expenses: Down 3.8% versus the prior year. National Security Business Growth: Increased 1% year-over-year in the first quarter. Civil Business Decline: Decreased 16% year-over-year. Adjusted EBITDA: $334 million at an adjusted EBITDA margin of 11.9%, up 130 basis points year-over-year. Adjusted Diluted Earnings Per Share (EPS): Increased 22% year-over-year to $1.81. Free Cash Flow: $261 million in the first quarter. Book-to-Bill Ratio: 1.5 times for the quarter; trailing 12-month book-to-bill is 1.1 times. Total Backlog: Over $39 billion, up 3% year-over-year. Funded Backlog: Increased 15% year-over-year to $4.7 billion. Capital Deployment: $447 million in the first quarter, including $324 million for acquisitions and $123 million in shareholder returns. Net Leverage Ratio: 2.7 times adjusted EBITDA for the trailing 12 months. Warning! GuruFocus has detected 10 Warning Signs with NTOIF. Is BAH fairly valued? Test your thesis with our free DCF calculator. Release Date: July 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Booz Allen Hamilton Holding Corp (NYSE:BAH) reported a 17% year-over-year increase in funding, driving momentum and supporting customer mission priorities. The company is making significant investments in cyber and defense tech growth vectors, including autonomy, AI, and quantum technologies. Booz Allen Hamilton Holding Corp (NYSE:BAH) has a strong funded backlog, up 23% in national security, indicating robust demand and future growth potential. The acquisition of Ultra IMC Mission Solutions is expected to expand and scale Booz Allen Hamilton Holding Corp (NYSE:BAH)'s Defense Tech product line, accelerating growth. The company is leveraging AI to enhance productivity and efficiency across internal operations and mission delivery, positioning itself as a leader in AI-enabled solutions. Booz Allen Hamilton Holding Corp (NYSE:BAH) experienced a 4.2% year-over-year decline in first-quarter revenue, with civil business declining 16% due to contract roll-offs and fewer new program starts. The company faces challenges in the civil sector, with smaller re-compete contracts and a slower award environment impacting near-term revenue. There is uncertainty in the budget process due to the midterm election year, which could complicate funding and create delays in awards. The transition to fixed-price contracts may lead to near-term delays as customers adjust their procurement processes. Booz Allen Hamilton Holding Corp (NYSE:BAH) needs to accelerate hiring, particularly for cleared personnel, to meet demand in national security and defense tech sectors. Q: How are you approaching guidance given the uncertainty in the second half, and are acquisitions included in your guidance? A: Horacio Rozanski, CEO, explained that while they are pleased with the first quarter's performance, the environment remains dynamic. They are cautious about the funding dynamics and will update guidance in the next quarter, including the impact of acquisitions like Ultra Mission Solutions. They feel optimistic about their cyber and defense tech businesses. Q: Can you discuss the funded bookings in the quarter and expectations for national security and civil segments? A: Kristine Anderson, COO, noted that funding is up 18% year-over-year across both civil and national security. The bookings were weighted towards national security, with a 15% increase in funded backlog. They are seeing good pipeline growth and a steady award environment. Q: What are the key technologies and capabilities that Booz Allen finds most attractive in defense and intelligence? A: Horacio Rozanski, CEO, highlighted their focus on cyber and defense tech, particularly Zero Trust capabilities and the Velox Suite for cyber. The Ultra acquisition points to interests in C3BM and autonomy. They are also expanding in AI and quantum technologies. Q: Is there anything abnormal in the unfunded backlog, and how does it reflect funding momentum? A: Troy Lahr, CFO, confirmed there was no abnormal pull-forward in funding. The quarter was clean, reflecting an improving environment as discussed by the leadership team. Q: How does the shift to fixed-price contracts impact Booz Allen, and what is the expected mix of contract types? A: Kristine Anderson, COO, stated that the shift to firm fixed-price contracting is underway, with the administration pushing for it as the default. While it's early, they are seeing some shifts and have included this in their planning. Horacio Rozanski, CEO, added that they welcome this change as it aligns with their operational efficiency goals. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Booz Allen Hamilton (BAH) came out with quarterly earnings of $1.81 per share, beating the Zacks Consensus Estimate of $1.49 per share. This compares to earnings of $1.48 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +21.48%. A quarter ago, it was expected that this defense contractor would post earnings of $1.32 per share when it actually produced earnings of $1.78, delivering a surprise of +34.85%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Booz Allen, which belongs to the Zacks Consulting Services industry, posted revenues of $2.8 billion for the quarter ended June 2026, in line with the Zacks Consensus Estimate. This compares to year-ago revenues of $2.92 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 21.9% since the beginning of the year versus the S&P 500's gain of 8.2%. 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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $1.58 on $2.87 billion in revenues for the coming quarter and $6.31 on $11.41 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 bottom 35% 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, Information Services Group (III), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This market advisory service company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +12.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Information Services Group's revenues are expected to be $62.75 million, up 1.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report Information Services Group, Inc. (III) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Government consulting firm Booz Allen Hamilton (NYSE:BAH) missed Wall Street’s revenue expectations in Q2 CY2026, with sales falling 4.2% year on year to $2.8 billion. Its GAAP profit of $1.63 per share was 16.5% above analysts’ consensus estimates. Is now the time to buy Booz Allen Hamilton? Find out in our full research report. Revenue: $2.8 billion vs analyst estimates of $2.82 billion (4.2% year-on-year decline, 0.5% miss) EPS (GAAP): $1.63 vs analyst estimates of $1.40 (16.5% beat) Adjusted EBITDA: $334 million vs analyst estimates of $303 million (11.9% margin, 10.2% beat) Operating Margin: 10%, up from 8.8% in the same quarter last year Free Cash Flow Margin: 9.3%, up from 3.3% in the same quarter last year Market Capitalization: $7.9 billion With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton (NYSE:BAH) provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches. Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $11.09 billion in revenue over the past 12 months, Booz Allen Hamilton is larger than most business services companies and benefits from economies of scale, enabling it to gain more leverage on its fixed costs than smaller competitors. This also gives it the flexibility to offer lower prices. As you can see below, Booz Allen Hamilton’s sales grew at a solid 7% compounded annual growth rate over the last five years. This shows it had high demand, a useful starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Booz Allen Hamilton’s recent performance shows its demand has slowed as its revenue was flat over the last two years. This quarter, Booz Allen Hamilton missed Wall Street’s estimates and reported a rather uninspiring 4.2% year-on-year revenue decline, generating $2.8 billion of revenue. Looking ahead, sell-side analysts expect revenue to grow 3.8% over the next 12 months. Although this projection indicates its newer products and services will fuel better top-line performance, it is still below the sector average. ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice. Booz Allen Hamilton’s adjusted operating margin has more or less stayed the same over the last 12 months , averaging 9.9% over the last five years. This profitability was mediocre for a business services business and caused by its suboptimal cost structure. Looking at the trend in its profitability, Booz Allen Hamilton’s adjusted operating margin might have fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. In Q2, Booz Allen Hamilton generated an adjusted operating margin profit margin of 10.7%, up 1 percentage points year on year. This increase was a welcome development, especially since its revenue fell, showing it was more efficient because it scaled down its expenses. Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions. Booz Allen Hamilton’s EPS grew at 9.1% compounded annual growth rate over the last five years, higher than its 7% annualized revenue growth. However, this alone doesn’t tell us much about its business quality because its adjusted operating margin didn’t improve. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Booz Allen Hamilton, its two-year annual EPS growth of 17% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q2, Booz Allen Hamilton reported EPS of $1.63, down from $2.18 in the same quarter last year. Despite falling year on year, this print easily cleared analysts’ estimates. Over the next 12 months, Wall Street expects Booz Allen Hamilton’s full-year EPS to shrink by 5.6% from $6.40 to $6.04. It was good to see Booz Allen Hamilton beat analysts’ EPS expectations this quarter. On the other hand, its revenue slightly missed. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 1.9% to $67.10 immediately after reporting. Booz Allen Hamilton may have had a good quarter, but does that mean you should invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.