Booz Allen Hamilton Holding Corporation (BAH) on Q3 2021 Results - Earnings Call Transcript

Operator: Good morning. Thank you for standing by and welcome to the Booz Allen Hamilton's Earnings Call covering Third Quarter Results for Fiscal Year 2021. At this time, all participants are in a listen-only mode. Later, there will be an opportunity for questions. I would now like to turn the call over to Mr. Rubun Dey. Rubun Dey: Thank you. Good morning and thank you for joining us for Booz Allen's third quarter 2021 earnings announcement. We hope you have had an opportunity to read the press release that we issued earlier this morning. We have also provided presentation slides on our website and are now on Slide 2. Horacio Rozanski: Thank you, Rubun. And good morning, everyone. Thanks for joining the call. Today Lloyd and I will take you through our third quarter results and the dynamics that drove them and we will put the results in the context of the successful culmination of our three-year investment thesis and the strength of our business in the near and long-term. As you saw in our press release, we had a mixed quarter. Our revenue grew more slowly than expected. Conversely, our bottom line results, profit margins and cash flow are excellent and ahead of expectations. Since the beginning of our fiscal year, we have described three macro environmental factors that created uncertainty about our second half; the outcome of election, the status and outlook for the federal budget and the course of the COVID-19 pandemic. Let me talk specifically about how those are playing out on the demand front, on the supply front and the impact on revenue and profits. Underlying demand for our services and solutions remains quite strong. In the third quarter, we saw delays in some procurement in the intelligence market largely due to the pandemic and in the civil market; we saw movement to the right on awards and even some pull back on funding which we believe is due to turmoil surrounding the Presidential election. Lloyd Howell: Thanks Horacio and good morning, everyone. As we approach the end of our 2021 fiscal year, a year of unprecedented challenge, we're proud of how well our people have consistently executed on our clients most important missions. As Horacio mentioned earlier in outlining our 2021 annual operating plan, we identified three major sources of uncertainty. The November election, the budget outlook and the COVID-19 pandemic. After an exceptional top line performance in the first half held by unusually strong staff utilization, we expected slower growth in the second half as PTO trends began to normalize. We also anticipated the potential for a slowdown in award activities following the November Presidential election. We factored these elements into the annual guidance we provided at the end of the second quarter. However, we did not correctly anticipate the timing and magnitude of the top line impact of those dynamics. Our cost management efforts to-date enabled us to hold the lines at adjusted EBITDA. Rubun Dey: Thanks Lloyd. Operator, please open the lines. Operator: our first question comes from Carter Copeland of Melius Research. Your line is open. Carter Copeland: Just two quick ones from me. One of these seems sort of strange to ask, but given the importance on the top line I guess it's important to know how it work. On the PTO impact to the extent, there's unused PTO for the staff on the year and you rolled that forward to next year. I realized you're not guiding for next year yet. But how should we think about, is there an impact of shifting some of that productivity impact into the following year that we should we mindful of as we think about next year's growth? Lloyd Howell: I'll start, Carter. As we said, there were three main reasons for slower growth in Q3 and one of those is definitely tied to lower productivity than what we were running in the first half. If you look at the reasons for that, not only is entire PTO driven by lower available labor. But also lower staff utilization. So we definitely saw a snap back with productivity faster than what we expected. We think as things normalize, it will go back to as we said in our prepared remarks historic levels and we think that will occur over the next couple of quarters. Carter Copeland: Yes, I guess my question is Lloyd. Is there a way for thinking mathematically about it is there a way for to go beyond normalized because you've got built up balances of PTO then suddenly need to get burned down, if you know what I mean? So I guess I'm just asking what normalize mean I suppose. Lloyd Howell: Yes, I mean for the balance of this year. We think its $50 million range and we're not at the moment seeing it any different than what we said or what we're seeing occur for the balance of this fiscal year. Carter Copeland: Okay. And then on the headcount impact of the getting out of the program. The strategic decision to get out of defense program. Can you quantify how big that was? Lloyd Howell: Yes, it impacted about 300 of our folks most of which we redeployed onto other programs in our portfolio. But as we also indicated, we expect that it will continue to grow overtime. With regard to the divestiture that was about 120 people tied in our army account. Carter Copeland: Okay, thanks for the color, Lloyd. Operator: Our next question comes from Jon Raviv of Citi. Your line is open. Jon Raviv: So switching from sales to margin rate, Lloyd just your thoughts on the margin run rate clearly very strong here point higher for the year. Is that a new sort of base off of which you guys could improve this new efforts that you're making in new lines of business or maybe talk about the pressure perhaps as some of this COVID rolls off and people start to travel again and you start to spend all money. Lloyd Howell: Sure so, we're very pleased with our margin performance year-to-date. From our perspective it's a combination of strong execution of the portfolio as well as proven management of discretionary expenses. We didn't get here as you appreciate, overnight. It's been work in progress. But we believe that the things and the dynamics that have contributed to this will remain which is solid contract performance, management among allowable and also as we've made comments in our prepared remarks lower billable expense. Going forward, we're going to continue to invest long-term and in terms of hiring, rewarding our people, the infrastructure improvements that we mentioned and investing in capabilities. So we believe that the mid-to-high 10 range is sustainable and we're going to continue doing things that got us in this position. Horacio Rozanski: Jon, I'll just add couple of quick points. First one is, in some ways the margin percentage can be tied to the volatility of the billable expenses because as you know most of our margin comes from our labor. Having said that, I agree completely with Lloyd that our focus is on EBITDA dollar growth and that has been solid. It's been running ahead of revenue and even revenue its billable growth and that is conservative effort becoming more efficient and we're going to keep on that. Jon Raviv: Thanks very much. Operator: Our next question comes from Cai von Rumohr of Cowen. Your line is open. Cai von Rumohr: To go back to PTO, do you allow employees to carry PTO over from one year to the next or do they use it or lose it? Lloyd Howell: We have a couple of programs, we have a use it or lose it by the end of this fiscal year and then on accrual basis, it sort of grows with the level and seniority of the individual. So portion of it will go away by the end of March. Cai von Rumohr: Got it and then cyber clearly is a priority we had the Russian hack, Biden is basically putting $9 billion to update Federal IT infrastructure. Could you give us some color? I mean you say you're Ranked # 1 by Frost & Sullivan. But obviously you've got - any color you can give us on your business. Therefore example your position in the intel business which isn't covered by Frost & Sullivan. And maybe some metrics like what percent of your employees roughly are involved in cyber. And given the focus, I apologize the long question. How come we have the slip in the cyber program given the increasing priority? Horacio Rozanski: Let me try and start with that. I think Lloyd will probably want to chime in on your multi-part question, Cai. The first thing I would say is, our position in cyber is in fact even stronger in the intelligence community than it is broadly across the government or the commercial sector. The work that we do in intelligence is in some ways the crown jewel. Our cyber programs, we are very bullish on the medium term, long-term outlook for our entire cyber business including commercial which is why and we can talk later about the Tracepoint investment as a part of that. It's actually difficult to break down the specific numbers of how many people do this and how many people do that? Which is why we don't do it because we approach cyber from an all-admission approach. We look at the intersections between cyber and cloud, cyber and AI, cyber and 5G, cyber and intelligence and so forth. On the specific contract that you were asking about, what actually happened is, that contract was actually burning at a faster rate than it was programmed to do because of - frankly because of the increasing the attack surface from so many people in the government working from home and alike and there was an expectation that the last administration would ramp up the funding to keep up with that and the last minute they chose not to do so. We believe that is temporary as you pointed out. The Biden administration is looking to make investments in cyber. We're talking to lot of our clients about the remediation from SolarWinds and so we see a lot of opportunity in that space and we're pursuing that opportunity very aggressively. Cai von Rumohr: Thank you very much. Operator: Our next question comes from Gavin Parsons of Goldman Sachs. Your line is open. Gavin Parsons: I wanted to carry through on the cyber question. But maybe a little bit more on the commercial market. It's always been a little surprising to me that companies haven't utilized yourselves or other government contractors, cyber offerings more given you were the ones who were actually doing cyber for the US government and for the Department of Defense and the intel community presumably you've got some of the best capabilities in the world. So curios if you could talk about that dynamic if you think that nation states sponsored type attacks increase the commercial opportunity and how that could play out? Horacio Rozanski: We do Gavin. I think as we talked about in the prepared remarks, we're actually shifting our global commercial focus more back to the US and much more double down on cyber for this very reason. I think as the adversaries get more sophisticated and as clients get more sophisticated the demand for what we do grows. Quite frankly when we first go into commercial cyber, I think we were so far ahead of many of our clients that it was hard for them to consume, the type of cyber services, cyber capability that we could offer. Our clients are moving very fast or catching up. A lot of them are super sophisticated and so that's why we see significant opportunity and increase in demand. The Tracepoint investment is directly related to our desire to be more involved in incident response. We do a good level of incident response but that is a business that has evolved towards needing to have channel with insurance companies where early players obviously when an incident happens and so forth and Tracepoint does a spectacular job of that and we believe that, their ability to access our channel and our expertise can create real synergies and acceleration. Gavin Parsons: Great, that's helpful. And then just coming up in your three-year plan and they're not guiding. I imagine it's difficult to predict the priorities - or how the priorities of the new administration will play out. What's your anticipation of what budgets will look like over the next few years and what that means for your top line growth relative to the last few years of elevated budget growth? Thanks. Horacio Rozanski: Sure. I think it's trying to predict too far out with the new administration just coming in and everything else is beyond what we should try to do. We are thinking in general that budgets are not going to grow as fast in the next few years as they grew in the last few years and so this is why we continue to invest and double down on these key technologies and capabilities that I talked about before cloud, cyber, AI, 5G because we believe that demand for those types of services will remain strong and in fact accelerate even as the overall budget gets potentially more constrained than it's been in the past and we believe that on two dynamics. One is because you can actually save a lot of money by implementing these technologies right and two, which is we'll focus on so far. You can enhance mission success again some of these very critical missions that. They're not going away if anything are becoming more important. Gavin Parsons: Great. Thank you. Operator: Our next question comes from Tobey Sommer with Truist. Your line is open. Tobey Sommer: Was wondering if you could talk to the hiring plans and sort of reaccelerates your headcount growth and how that may influence continued margin expansions as part of your sort of next three-year plan? Thank you. Lloyd Howell: Sure I'll start. We have always pride ourselves on being a people first business, our employee value proposition plays into that. And we clearly are going to accelerate, pick up the pace from where we ended in Q3. There are couple of reasons we're confident that we're going to get there. The first as I mentioned is our employee value proposition the constant of the work that we provide to our clients. The second, more of a mechanical point, over 30% of our come from our existing workforce. So have familiarity with Booz Allen understand what we're doing and accelerates the recruiting process. This is critically important because the labor market as we often appreciate was very competitive, pre-pandemic and in the midst of COVID as it remained so. So we're going to be even more so on the levers that we've historically done and then also increase the pipeline as I've mentioned. On a margin basis, this investment is going to put a little bit of downward pressure on where we are currently and this is historically what we've done in the fourth quarter anyway, which is really ramping up our people, our bench as we go into the next fiscal year. But even with that being said, we still are confident we're going to end up in the mid-to-high tens with margin. Horacio Rozanski: One other things I just to add - one last thought on this is, that I think is really interesting a good way about the fiscal year that we're about to end. Is we have managed to lower our overall cost position while increasing our investment in people? And I think that tells you how we're thinking about the business, what our priorities are and what we think about for the future. Tobey Sommer: Thank you for that. My second question, could you speak to the most promising areas in the civil business under the Biden administration and discuss how your current portfolio lines up against those and maybe the areas where you have to position yourselves slightly different in order to capitalize on them. Thank you. Horacio Rozanski: Sure. I'll give you maybe a bird eye view on that. The largest part of our civil portfolio has been our health business and it continues to be - we saw during the Obama year significant investment by the country and significant agenda against healthcare access. We expect some version of that to reaccelerate under the Biden administration and that scenario where again I think Booz Allen is in a very good position to assist our clients, should things move in that direction. Our citizen's services business is going to be underpinning the overall digital transformation of our civil government which is also something that's being talked about not just from a cyber perspective but from the ability to move online. Many of the services that we citizens demand and are now expecting to see online. We need to think to step back and think about what role, we think we can play, if there's a significant environment agenda that has - we have a digital play into that. We need to consider whether we need or want a broader play in that area. But that is again under our consideration and as we think about our strategy. These are the kinds of questions we're asking ourselves but I keep coming back. We don't want to underpin all infrastructure, all technology. We want to leverage new technology into some of these areas of expansion and continue to be viewed by all of our clients as the people who insert new technology, new thinking, commercial best practices into their missions. Tobey Sommer: Thank you very much. Operator: Our next question comes from Joseph Denardi of Stifel. Your line is open. Joseph Denardi: Lloyd, can you speak to M&A a bit maybe the nature of your pipeline, is that still a priority for capital deployment? Would you characterize the pipeline as smaller opportunities or larger and maybe just kind of your level of comfort in using equity to finance anything there? Thank you. Lloyd Howell: Sure, we believe as we said our balance sheet is certainly a strategic asset uncoupled with our strong generation of cash really puts us in a good position to not only pursue M&A opportunities but also as we did this quarter the uptick with the dividend and the increased authorization with our share repurchase program. Specifically regarding M&A, our pipeline has been growing consistent with the capabilities Horacio and I long talked about. Software systems development, AI, digital, data analytics and we're looking at a variety of opportunities and different ways to deploy that capital as we did with the Tracepoint investment. These are all different maturation points increasingly these are opportunities that we've cultivated which is been really good and consistent with the individual market strategies and where we think increased demands going to come with our clients. So as you know we have a pretty high bar, we have historically looked for capability tuck-ins. I'd characterize them as that's very much consistent with what we've always said. But I'm very pleased with the volume and remained confident that the inorganic contribution will pick up overtime. Joseph Denardi: Okay that's helpful. And then Horacio, can you just update us on the classified intel business or customer set there. Maybe how that's going with the semi recent leadership changes at this point and visibility you have been to - that customer again being a driver of growth for you all? Thank you. Horacio Rozanski: Sure. It's always difficult on these calls to talk our intel business in any detail. But let me say the following, we're seeing more pick up in both proposal, opportunity and even some really interesting awards albeit small. Again the use of technology to help drive those missions. I think if we have fallen behind a little bit on that part of the business. Is we were not implementing or absorbing these new technologies into that business as quickly as we were in our defense and our civilian portfolio and that has changed? over hand with some old contracts that frankly we were going to out of one way or the other and so the numbers as you see them right now reflect that mix shift that is working its way through the system. But I'm very optimistic about where that business is going. I think once the awards that we are expecting finally stop moving to the right and get awarded. I think in the next year see that business - I'd like to see for sure see that business return to a healthy growth rate. It's a good business and we do some really just extraordinary work there for our clients and our clients value it, which is really where it all begins for us. Is if our client value, we need to figure how to do more of it, how to do better and how to grow the business overtime. Joseph Denardi: Thank you. Operator: Our next question comes from Louie DiPalma of William Blair. Your line is open. Louie DiPalma: Horacio, you've demonstrated a leadership in dating analytics in addition to AI and in 2018, you announced that you won a very strategic $885 million eMAPS contract or Machine Learning and Data Analytics. We have heard that there will be an eMAPS sequel contract that is significantly larger than the existing eMAPS contract something in the $1.5 billion range. And I was wondering because I thought your existing eMAPS contract had a five-year duration. Are they re-competing your existing contract and is the DoD happy and satisfied with your existing performance with machine learning, data analytics and AI in general? Thanks. Horacio Rozanski: Let me answer the sort of the last question first and work my back to the front of your question. The answer is yes. Across all of our work, we continue our leadership on AI, on data analytics, on machine learning and on being able to deliver those kinds of capabilities to mission, eMAPS being one of those examples our work at the J demonstrates that and so many other places. I don't want to speak specifically about any one contract on this call. But I will say this, it is not unusual for contracts to run out of ceiling ahead of the five-year timeline and I think that is in some ways a demonstration that there's so much value being created that was originally expect a ceiling that was originally expected to last five years. Sometimes gets work through in three or four. Again not because the clients see so much value that the missions that expands and then recomplete will come along and the recomplete will be larger to accommodate. Call it the higher annual burn rate in the contract and so, we have a good number of contracts in our portfolio some very large ones that actually will get competed early and almost every time it's because again there's been mission expansion because of the quality of the services being provided in the contract not because the client is dissatisfied with the services. Louie DiPalma: Thanks Horacio, that's all I had. That was very helpful. Operator: Our next question comes from Seth Seifman of J.P. Morgan. Your line is open. Ben Arnstein: This is actually Ben on for Seth. I guess I wanted to go back to the questions about revenue. The high end of the guidance for this year implies another quarter of growth at about 3% in Q4. I guess how should we think about the trajectory of organic growth beyond this year. It sounds like some of the issues are going to last couple of quarters. So any color you can give on that. And then is it still reasonable to think about getting to inorganic growth rate that was something closer to the original guidance for this year as you moved past some of these headwinds? Lloyd Howell: The balance of the year as we said in our prepared remarks. There are couple of dynamics that would have to be less than what we're expecting. Certainly the impact of billable expenses that we have launched that were focused on revenue ex-billable expenses that has an impact on revenue as you know. So that is not as much of a headwind than what we're expecting that sort of helps a lot and then the productivity topic that we talked about, where we're seeing a normalization with available labor and PTO usage. If that were to slow down or feather down like we had originally expected we could see that become a contribution to getting toward the high end of the range. And then lastly, the one that Horacio and I feel we have a fair amount of control on is recruiting. If we execute in a manner that we expect to, it will slowly build back up and would also be a tailwind to pushing us to the top end of the range. I think it's too early to get into looking out beyond the next couple of quarters and as we've said, we expect this to be a building process. But at the appropriate time we'll give guidance as to what FY 2022 is going to look like. Horacio Rozanski: let me build on that and leave you with three thoughts perhaps. The first one is, as we've discussed during this whole call. We view our business as very robust with lots of opportunities in the pipeline. Timing is a bit uncertain but we're well positioned to win in the market and the medium and long-term trends we believe are in our favor. Point number two as Lloyd said, we expect top line performance to be a little choppy for the next couple of quarters potentially into the early quarters of next year. But we have some work to do both around capturing the opportunities that are out there and ramping them up as quickly as our clients will allow us and hiring aggressively against them and we are all over that. And then the last point that I don't want to lose is, how strong our bottom line performance has been, how solid it is even with some volatility at the top line and the expectation that will also continue overtime. Ben Arnstein: Great, thank you. Operator: There are no further question. I'd like to turn the call back over to Horacio Rozanski for any closing remarks. Horacio Rozanski: Thank you everyone for your questions. I hope the discussion today gives you a deeper understanding of the dynamics driving our third quarter performance and our areas of focus going forward both in the near and in the long-term. As an institution that has evolved and succeeded for more than a century. Booz Allen is constantly striving to improve and we are especially focused on living up to our purpose, empowering people to change the world. So on that note, I'd like to close today by calling attention to our recently released environmental, social and governance impact report. It is another way for us to convey our firm's aspirations, our vision and our impact. Today our stakeholders have broad expectations for transparency. Our clients and our investors, non-profits and community partners, regulators and suppliers and especially our employees. They all want to understand a company's values and performance as a corporate citizen. Our 2020 EGS impact report takes a fresh approach to providing that transparency. It's informed by our stakeholders and is aligned to the GRI standards. The world's most widely used standards for corporate sustainability reporting. It's a snapshot in time and will evolve as we mature the governance and measurement of our corporate impact. If you haven't yet seen it, the report is called The Future Can't Wait and it is available on our website. I invite you to take a look. Once again thank you for your time and your participation this morning and have a great day. Operator: Ladies and gentlemen. This does conclude the conference. You may now disconnect. Everyone have a great day.
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Booz Allen Hamilton Holding Corporation (NYSE:BAH) Financial Performance Analysis

  • Booz Allen Hamilton's ROIC of 17.85% significantly surpasses its WACC of 5.09%, indicating efficient capital utilization.
  • Compared to peers, BAH's ROIC to WACC ratio of 3.50 showcases its superior return on invested capital.
  • While competitors like Leidos Holdings, CACI International, and SAIC also generate returns above their cost of capital, BAH leads in efficiency.

Booz Allen Hamilton Holding Corporation (NYSE:BAH) is a management and information technology consulting firm, primarily serving the U.S. government in defense, intelligence, and civil markets. It competes with firms such as Leidos Holdings, CACI International, and Science Applications International Corporation, offering similar consulting and technology services to government and commercial clients.

In evaluating Booz Allen Hamilton's financial performance, the Return on Invested Capital (ROIC) is a key metric. BAH's ROIC stands at 17.85%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 5.09%. This results in a ROIC to WACC ratio of 3.50, indicating that BAH is generating returns well above its cost of capital.

When comparing BAH to its peers, Leidos Holdings has a ROIC of 14.48% and a WACC of 6.37%, resulting in a ROIC to WACC ratio of 2.27. This shows that while Leidos is also generating returns above its cost of capital, it is not as efficient as BAH in doing so.

CACI International, another peer, has a ROIC of 8.62% and a WACC of 6.11%, leading to a ROIC to WACC ratio of 1.41. This suggests that CACI is generating returns above its cost of capital, but at a lower efficiency compared to BAH.

Science Applications International Corporation (SAIC) has a ROIC of 12.41% and a WACC of 5.24%, resulting in a ROIC to WACC ratio of 2.37. While SAIC is performing well, BAH's higher ratio indicates superior capital utilization.

Booz Allen Hamilton Holding Corp (NYSE:BAH) Insights and Financial Overview

  • CEO Horacio Rozanski's significant stock purchase of 23,800 shares at $84.66 each, increasing his total ownership to 687,745 shares.
  • The Q2 2026 earnings call on October 24, 2025, provided insights into the company's financial performance and strategic plans.
  • Current trading price of $82.82 with a yearly high of $190.59 and a low of $82.23, indicating significant stock price volatility.

Booz Allen Hamilton Holding Corp (NYSE:BAH) is a management and information technology consulting firm, primarily serving the U.S. government in defense, intelligence, and civil markets. Competing with giants like Accenture and Deloitte, the company has recently seen significant actions from its CEO, Horacio Rozanski, who made a notable purchase of 23,800 shares at $84.66 each, increasing his total ownership to 687,745 shares.

The recent Q2 2026 earnings call on October 24, 2025, was a pivotal event for Booz Allen Hamilton. This call, featuring top executives including Rozanski, provided a platform for the company to discuss its financial performance and strategic plans, offering insights into its future direction.

Currently, BAH is trading at $82.82 on the NYSE, experiencing a slight decrease of 0.01% today. The stock's trading range for the day has been between $82.23 and $85.04. Over the past year, BAH has seen a high of $190.59 and a low of $82.23, indicating significant volatility in its stock price.

Booz Allen Hamilton's market capitalization stands at approximately $10.35 billion, reflecting its size and influence in the consulting industry. The trading volume today is 2,383,592 shares, indicating active investor interest which can impact the stock's price movement and overall market perception.

Rozanski's recent stock purchase and the company's strategic discussions during the earnings call highlight Booz Allen Hamilton's commitment to growth and shareholder value. Investors and analysts closely monitor these developments to assess the company's future performance and potential investment opportunities.

Booz Allen Hamilton (NYSE:BAH) Faces Challenges Despite Growth in National Security Portfolio

  • Booz Allen Hamilton's stock dropped 8.6% after reporting disappointing fiscal Q2 2026 earnings, missing expectations with an adjusted profit of $1.49 per share on sales of $2.9 billion.
  • The company's GAAP earnings fell to $1.42 per share, a 53% decrease from the previous year, attributing weak results to a "continued funding slowdown."
  • Despite challenges in the civil business, Booz Allen's national security portfolio showed solid growth, with the stock currently priced at $91.40, reflecting an approximately -8.86% decrease.

Booz Allen Hamilton (NYSE:BAH) is a management and information technology consulting firm, primarily serving the U.S. government in defense, intelligence, and civil markets. The company competes with firms like Accenture and Deloitte. On October 24, 2025, Stifel Nicolaus set a price target of $106 for BAH, suggesting a potential upside of 15.97% from its trading price of $91.40.

Despite this optimistic outlook, BAH's stock experienced a significant decline, dropping 8.6% by late morning after reporting disappointing fiscal Q2 2026 earnings. The company reported an adjusted profit of $1.49 per share on sales of $2.9 billion, missing expectations of $1.51 per share on nearly $3 billion in sales. This miss contributed to the stock's decline.

The company's GAAP earnings fell to $1.42 per share, a 53% decrease from the previous year. Adjusted earnings saw a decline of less than 18%, while revenue decreased by 8%. Booz Allen attributed these weak results to a "continued funding slowdown," which was not related to the government shutdown that occurred after the quarter ended.

Despite these challenges, Booz Allen's national security portfolio showed solid growth. However, the civil business faced difficulties, contributing to the overall downturn. The stock for BAH is currently priced at $91.40, reflecting a decrease of 8.89 points or approximately -8.86% in percentage terms. During the trading day, the stock reached a low of $88.12 and a high of $96.13.

Over the past year, BAH's stock has seen a high of $190.59 and a low of $88.12. The company's market capitalization stands at approximately $11.26 billion. The trading volume for the day is 8,341,547 shares on the NYSE, indicating significant investor activity following the earnings report.

Booz Allen Hamilton (NYSE:BAH) Receives New Price Target from UBS

  • Gavin Parsons from UBS sets a new price target for Booz Allen Hamilton (NYSE:BAH) at $119, indicating an expected increase of about 8.74%.
  • Booz Allen reports a mixed first-quarter fiscal 2026 performance with EPS increasing by 7.25% to $1.48, but revenue slightly declining by 0.6%.
  • The company's fiscal year 2026 EPS is projected to be between $6.20 and $6.55, with concerns over revenue dips and weaker backlog metrics clouding the outlook.

On July 28, 2025, Gavin Parsons from UBS set a new price target for Booz Allen Hamilton (NYSE:BAH) at $119. At the time, the stock was trading at $109.44, indicating an expected increase of about 8.74%. Booz Allen Hamilton is a management and information technology consulting firm, competing with companies like Accenture and Deloitte.

Booz Allen recently reported its first-quarter fiscal 2026 results, showing a mixed performance. The company's earnings per share (EPS) increased by 7.25% to $1.48, surpassing the Zacks Consensus Estimate by 1.4%. Despite this positive earnings report, the stock price has remained unchanged since the announcement, currently priced at $107.76.

On the revenue side, Booz Allen experienced a slight decline of 0.6%, bringing in $2.92 billion, which was 0.5% below the consensus estimate. The company's total backlog increased by 10.7% to $38 billion, but the funded backlog and book-to-bill ratio saw a year-over-year decline, raising concerns about future growth.

Looking forward, Booz Allen's fiscal year 2026 EPS is projected to be between $6.20 and $6.55, with revenue growth expected to range from 0% to 4%. The company also anticipates generating free cash flow between $900 million and $1 billion. Despite the positive earnings performance, concerns over revenue dips and weaker backlog metrics have clouded the fiscal 2026 outlook.

The stock has fluctuated between a low of $107.11 and a high of $112.69 during the day. Over the past year, BAH has reached a high of $190.59 and a low of $98.95. The company's market capitalization is approximately $13.37 billion, with a trading volume of 1,063,373 shares on the NYSE.

Booz Allen Hamilton Holding Corporation (NYSE:BAH) Earnings Preview

  • Booz Allen Hamilton is expected to report a 5.1% increase in EPS, indicating positive growth.
  • Revenue is projected to reach approximately $2.95 billion, with a slight anticipated decline.
  • The company's debt-to-equity ratio is high at 4.21, but it maintains a strong current ratio of 1.79.

Booz Allen Hamilton Holding Corporation, listed on the NYSE as BAH, is a management and information technology consulting firm. It provides services primarily to the U.S. government, including defense, intelligence, and civil markets. The company competes with other consulting firms like Accenture and Deloitte. Booz Allen Hamilton is set to release its quarterly earnings on July 25, 2025, before the market opens.

Wall Street analysts estimate Booz Allen Hamilton's earnings per share (EPS) to be $1.46, while the Zacks Consensus Estimate suggests $1.45. This marks a 5.1% increase from the previous year, indicating positive growth. Over the past 30 days, analysts have revised the EPS estimate upward by 0.3%, reflecting a positive reassessment of the company's performance.

The company's revenue is projected to reach approximately $2.95 billion, although a slight decline of 0.1% to $2.94 billion is anticipated for the quarter ending June 2025. Despite this, Booz Allen Hamilton's price-to-earnings (P/E) ratio of 15.72 suggests a reasonable market valuation of its earnings. The price-to-sales ratio of 1.20 indicates how much investors are willing to pay per dollar of sales.

Booz Allen Hamilton's enterprise value to sales ratio stands at 1.48, considering its debt and cash. The enterprise value to operating cash flow ratio is 17.56, reflecting the company's valuation in relation to its cash flow from operations. The company's earnings yield is 6.36%, indicating the return on investment for shareholders.

The company's debt-to-equity ratio is notably high at 4.21, showing a significant reliance on debt financing. However, with a current ratio of 1.79, Booz Allen Hamilton demonstrates a strong ability to cover its short-term liabilities with its short-term assets. The upcoming earnings report could influence the stock's price movement, with management's discussion playing a crucial role in determining future projections.

Booz Allen Hamilton's Strategic Expansion in Venture Capital

  • Booz Allen Hamilton (NYSE:BAH) upgrades its venture capital commitment to $300 million, aiming for growth and innovation.
  • The stock price of Booz Allen Hamilton is currently at $109.32, with minor fluctuations indicating market volatility.
  • Booz Allen's market capitalization stands at approximately $13.56 billion, showcasing its significant industry presence.

Booz Allen Hamilton, trading on the NYSE under the symbol BAH, is a management and information technology consulting firm. The company provides services primarily to the U.S. government in defense, intelligence, and civil markets. Booz Allen competes with other consulting giants like Accenture and Deloitte. Recently, William Blair upgraded NYSE:BAH to an "Outperform" rating, with the stock priced at $109.32 at the time of the upgrade.

Booz Allen's recent decision to triple its venture capital commitment from $100 million to $300 million highlights its strategic focus on expanding its influence in the venture capital space. This move aligns with the company's efforts to enhance its capabilities and adapt to the evolving market landscape. The increased investment could potentially drive future growth and innovation for Booz Allen.

The stock price of NYSE:BAH is currently $109.32, showing a slight decrease of 0.01%. Today, the stock has fluctuated between a low of $108.76 and a high of $110.70. Over the past year, BAH has experienced a high of $190.59 and a low of $98.95. These fluctuations indicate the stock's volatility and the market's response to Booz Allen's strategic decisions.

Booz Allen's market capitalization is approximately $13.56 billion, reflecting its significant presence in the consulting industry. The company's trading volume on the NYSE today is 1,429,058 shares, indicating active investor interest. This level of trading activity suggests that investors are closely monitoring Booz Allen's performance and strategic moves, such as its increased venture capital commitment.

Booz Allen Hamilton Holding Corporation's Financial Overview and Outlook

  • Earnings Per Share (EPS) of $1.61, surpassing the estimated $1.59, indicating a positive trend in financial performance.
  • Revenue of $2.97 billion fell short of the estimated $3.16 billion, missing the Zacks Consensus Estimate by 1.50%.
  • Projected adjusted EPS for fiscal 2026 between $6.20 and $6.55, with revenue expectations ranging from $12 billion to $12.5 billion, below analysts' forecasts.

Booz Allen Hamilton Holding Corporation, listed as NYSE:BAH, is a prominent consulting firm and government contractor based in McLean, Virginia. The company specializes in providing management and technology consulting services to the U.S. government and commercial clients. Booz Allen Hamilton competes with other consulting giants like Accenture and Deloitte in the industry.

On May 23, 2025, Booz Allen Hamilton reported earnings per share (EPS) of $1.61, surpassing the estimated $1.59. This marks a positive trend, as the company has exceeded consensus EPS estimates three times in the past four quarters. Despite this, the company's revenue of $2.97 billion fell short of the estimated $3.16 billion, missing the Zacks Consensus Estimate by 1.50%.

The company's fiscal 2026 outlook has raised concerns among investors. Booz Allen Hamilton projects adjusted EPS between $6.20 and $6.55, with revenue expected to range from $12 billion to $12.5 billion. These figures are below analysts' expectations of $6.92 EPS and $12.82 billion in revenue, leading to a decline in the company's stock during pre-market trading.

CEO Horacio Rozanski attributes the disappointing outlook to the Trump administration's cost-cutting measures, which have impacted contracts with civilian agencies. In response, Booz Allen Hamilton plans to restructure its civil business, implementing cost reductions and layoffs. CFO Matt Calderone announced a 7% workforce reduction in the first quarter, primarily affecting the civil business.

Despite these challenges, Booz Allen Hamilton anticipates growth in its defense and intelligence segments. The company's financial metrics, such as a P/E ratio of 16.4 and a price-to-sales ratio of 1.20, reflect the market's valuation of its earnings and revenue. Additionally, the company's debt-to-equity ratio of 2.97 highlights its financial leverage, while a current ratio of 1.57 indicates its ability to cover short-term liabilities.