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Booz Allen's Stock Remains Flat Since Fiscal Q1 Earnings Beat

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Key Takeaways

  • Q1 EPS rose 7.25% to $1.48, beating estimates by 1.4%, while revenues dipped 0.6% to $2.92B.
  • The total backlog grew 10.7% to $38B, but the funded backlog and book-to-bill ratio declined year over year.
  • FY26 EPS forecast is $6.20-$6.55; revenue growth is projected at 0-4%, with free cash flow of $900M-$1B.

Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported mixed first-quarter fiscal 2026 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same. However, the earnings beat failed to impress the market, as there has not been any price change since the earnings release.

Quarterly adjusted earnings per share of $1.48 surpassed the Zacks Consensus Estimate by 1.4% and increased 7.25% from the year-ago fiscal quarter’s actual. However, the company reported revenues of $2.92 billion, which missed the consensus estimate by 0.5% and decreased 0.6% on a year-over-year basis. Revenues, excluding billable expenses, were $2.04 billion, up 2.3% on a year-over-year basis.

BAH’s Backlogs Increase in Q1

The total backlog increased 10.7% from the year-ago quarter to $38 billion, missing our estimate of $41.8 billion. The funded and unfunded backlogs amounted to $4.05 billion and $10.4 billion, respectively. The funded backlog decreased 9.3%, missing our expectation of $5.1 billion. The unfunded backlog rose 13.7%, lagging our estimate of $10.6 billion.

Priced options rose 13.6% to $23.8 billion, missing our expectation of $26 billion. The book-to-bill ratio was 1.42 compared with 1.76 in the year-ago quarter. The headcount of 33,400 declined 4.8% on a year-over-year basis.

BAH’s Q1 EBITDA Margins Rise

Adjusted EBITDA amounted to $311 million, an increase of 3% from the year-ago quarter, and was in line with our estimate. The adjusted EBITDA margin on revenues of 10.6% increased 30 basis points on a year-over-year basis.

Key Balance Sheet & Cash Flow Numbers of BAH

Booz Allen exited the quarter with cash and cash equivalents of $711 million compared with $885 million in the March-end quarter of 2025. Long-term debt (net of current portion) was $3.9 billion, down 0.5% compared with $3.92 billion.

The company generated $119 million in net cash from operating activities. Capital expenditure was $233 million. The free cash flow was $96 million.

BAH’s FY26 Outlook

For fiscal 2026, BAH expects revenues to be in the range of $12-$12.5 billion. The midpoint of the guided range ($12.25 billion) was below the Zacks Consensus Estimate of $12.28 billion.

The revenue growth is anticipated to be in the range of 0-4%.

It expects an adjusted diluted EPS in the range of $6.20-$6.55 per share. The midpoint of the guided range ($6.375) was below the Zacks Consensus Estimate of $6.39 billion. Free cash flow is expected in the band of $900 million-$1 billion.

Booz Allen currently has a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Fiserv, Inc. (FI - Free Report) reported mixed second-quarter 2025 results. Earnings beat the Zacks Consensus Estimate, but revenues missed the same.

FI’s adjusted earnings per share of $2.47 topped the consensus mark by 2.5% and rose 16% year over year. However, adjusted revenues of $5.2 billion missed the consensus estimate by a slight margin but gained 1.7% on a year-over-year basis.

The Interpublic Group of Companies, Inc. (IPG - Free Report) reported impressive second-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2.2 billion.

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