Booz Allen Stock Dips 8.1% Since Fiscal Q3 Earnings Release

Booz Allen Hamilton Holding Corp.’s BAH reported mixed third-quarter fiscal 2026 results with earnings beating the Zacks Consensus Estimate while revenues missed the same.

The stock has plunged 8.1% since the release of results on Jan. 23, 2026, in response to the revenue miss and weak fiscal 2026 guidance.

BAH expects revenues to be in the range of $11.3-$11.4 billion compared with the prior view of $11.3-$11.5 billion. The midpoint of the guided range was below the Zacks Consensus Estimate of $11.38 billion.

Revenue growth is anticipated to be in the range of 5-6%. Free cash flow is expected to be in the band of $825-$900 million compared with the prior view of $850-$950 million.

Quarterly adjusted earnings per share (EPS) of $1.77 (excluding 14 cents from non-recurring item) beat the Zacks Consensus Estimate by 40.5% and increased 14.2% from the year-ago fiscal quarter’s actual. The company reported revenues of $2.62 billion, which missed the consensus estimate by 3.9% and decreased 10.2% on a year-over-year basis. Revenues, excluding billable expenses, were $1.8 billion, down 6.7% on a year-over-year basis.

Booz Allen Hamilton Holding Corporation Price, Consensus and EPS Surprise

Booz Allen Hamilton Holding Corporation price-consensus-eps-surprise-chart | Booz Allen Hamilton Holding Corporation Quote

BAH’s Backlogs Increase in Q3

The total backlog increased 1.5% from the year-ago quarter to $38 billion, missing our estimate of $42.88 billion. The funded and unfunded backlogs amounted to $4.21 billion and $4.66 billion, respectively. The funded backlog decreased 9.7%, missing our expectation of $4.85 billion. The unfunded backlog rose 18.7% but lagged our estimate of $10.26 billion.

Priced options declined 2.2% to $24.19 billion, missing our expectation of $27.8 billion. The book-to-bill ratio stood at 0.3 compared with 0.6 in the year-ago quarter. The headcount of 31,600 declined 12% on a year-over-year basis.

BAH’s Q3 EBITDA Margins Rise

Adjusted EBITDA amounted to $285 million, a decrease of 14.2% from the year-ago quarter but beat our estimate of $282.6 million. The adjusted EBITDA margin on revenues of 10.9% decreased 50 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 $882 million compared with $885 million in the March-end quarter of 2025. Long-term debt (net of current portion) was $3.86 billion, down 1.5% compared with $3.92 billion at the end of fiscal 2025.

The company generated $801 million in net cash from operating activities. Capital expenditure was $195 million. The free cash flow was $248 million.

BAH’s FY26 Outlook

BAH expects an adjusted diluted EPS in the range of $5.95-$6.15 per share compared with prior guidance of $5.45-$5.65. The midpoint ($6.05) of the guided range was above the Zacks Consensus Estimate of $5.69 billion. Free cash flow is expected to be in the band of $825-$900 million.

Booz Allen currently carries a Zacks Rank #3 (Hold).

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

Earnings Snapshot

Paychex, Inc. PAYX reported impressive second-quarter fiscal 2026 results.

PAYX’s quarterly earnings of $1.26 per share beat the Zacks Consensus Estimate by 1.6% and increased 10.5% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus estimate by a slight margin and rallied 18.3% from the year-ago quarter.

FactSet FDS registered impressive results for the first-quarter fiscal 2026.

FDS’s earnings per share of $4.51 beat the consensus mark by 2.7% and increased 3.2% from the year-ago quarter. Revenues of $607.6 million beat the Zacks Consensus Estimate by 1.4% and rose 6.9% from the year-ago quarter.

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