Booz Allen Hamilton

BAH Q2 2026 Earnings

Reported Oct 24, 2025 at 6:47 AM ET · SEC Source

Q2 26 EPS

$1.49

MISS 1.42%

Est. $1.51

Q2 26 Revenue

$2.89B

MISS 2.74%

Est. $2.97B

vs S&P Since Q2 26

-19.7%

TRAILING MARKET

BAH -13.3% vs S&P +6.4%

Market Reaction

Did BAH Beat Earnings? Q2 2026 Results

Booz Allen Hamilton delivered a disappointing fiscal second quarter, missing on both the top and bottom lines as its civil business continued to buckle under a prolonged government funding slowdown. Adjusted diluted EPS came in at $1.49, falling shor… Read more Booz Allen Hamilton delivered a disappointing fiscal second quarter, missing on both the top and bottom lines as its civil business continued to buckle under a prolonged government funding slowdown. Adjusted diluted EPS came in at $1.49, falling short of the $1.51 consensus estimate by 1.42%, while revenue of $2.89 billion trailed expectations by 2.74% and declined 8.2% year-over-year, reflecting what CEO Horacio Rozanski called a "bifurcated market," where the company's national security portfolio grew on an adjusted basis even as civil procurement remained deeply challenged. The company responded by cutting headcount to roughly 32,500 from 35,800 a year ago and absorbing $14 million in restructuring-related severance costs in the first half, with a second round of layoffs announced as part of an effort to strip out $150 million in annual expenses. Looking ahead, management sharply reduced full-year fiscal 2026 guidance, now projecting revenue of $11.30 billion to $11.50 billion and adjusted diluted EPS of $5.45 to $5.65, well below prior targets, though a record backlog of $40.19 billion and a 1.7x book-to-bill ratio offered some reassurance about longer-term demand.

Key Takeaways

  • Revenue decline driven by decreased headcount from slowed procurement environment and continued U.S. government funding uncertainty
  • National Security portfolio (Defense & Intel) grew 4.8% YoY excluding prior year provision for claimed costs
  • Civil business stabilized but ongoing procurement challenges delay return to growth
  • Prior year results benefited from $113 million provision for claimed costs reduction and $115 million in insurance recoveries
  • Lower headcount of approximately 32,500 vs 35,800 in prior year period
  • Record Q2 backlog of $40 billion with 1.7x quarterly book-to-bill ratio
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BAH YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

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BAH Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 25 Q3 26

“Our second quarter results reflect a bifurcated market. We are winning work and demand is strong for our leading cyber, AI, and warfighting technologies.”

— Horacio Rozanski, Q2 2026 Earnings Press Release