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Booz Allen Hamilton

BAH Q3 2026 Earnings

Reported Jan 23, 2026 at 6:47 AM ET · SEC Source

Q3 26 EPS

$1.77

BEAT +39.32%

Est. $1.27

Q3 26 Revenue

$2.62B

MISS 3.86%

Est. $2.73B

vs S&P Since Q3 26

-28.5%

TRAILING MARKET

BAH -23.9% vs S&P +4.6%

Market Reaction

Did BAH Beat Earnings? Q3 2026 Results

Booz Allen Hamilton delivered a strikingly split quarter in Q3 FY2026, posting adjusted diluted EPS of $1.77 against a consensus estimate of $1.27, a 39.32% beat, even as revenue of $2.62 billion fell short of the $2.73 billion estimate and declined … Read more Booz Allen Hamilton delivered a strikingly split quarter in Q3 FY2026, posting adjusted diluted EPS of $1.77 against a consensus estimate of $1.27, a 39.32% beat, even as revenue of $2.62 billion fell short of the $2.73 billion estimate and declined 10.2% year-over-year. The primary culprit was a prolonged government shutdown that management estimated cost roughly $50 million in unperformed work and pushed another $60 million into Q4, with the Civil segment bearing the brunt of the damage, sliding to $732 million from $1.01 billion a year earlier. Despite that top-line pressure, a discipline that defense peers have also leaned on helped Booz Allen drive net income up 7.0% to $200 million, while free cash flow nearly doubled to $248 million. Looking ahead, the company narrowed its FY2026 revenue guidance to $11.30 billion to $11.40 billion, but meaningfully raised its adjusted diluted EPS outlook to $5.95 to $6.15, lifted largely by a $0.50 per share tax benefit tied to new Section 174 rules.

Key Takeaways

  • • Revenue decline of 10.2% driven by slowed procurement and funding environment including government shutdown
  • • Civil segment revenue declined significantly from $1,012M to $732M YoY
  • • Defense revenue held flat at approximately $1,454M
  • • Net income grew 7.0% driven by lower income tax expense (tax benefit of $13M vs. $61M expense in prior year)
  • • Adjusted Diluted EPS grew 14.2% supported by profitability, tax benefits, and lower share count
  • • Free cash flow nearly doubled driven by higher collections and lower tax payments
  • • Headcount decreased from 35,900 to 31,600 year-over-year
  • • Strong contract execution and disciplined cost management partially offset revenue headwinds

BAH Forward Guidance & Outlook

Booz Allen updated its FY2026 guidance: Revenue of $11.3–$11.4 billion (revenue growth of -5.0% to -6.0%), narrowed from $11.3–$11.5 billion due to the prolonged government shutdown and slower funding environment. Adjusted EBITDA of $1,195–$1,215 million with mid-10% margins. Adjusted Diluted EPS raised to $5.95–$6.15 from $5.45–$5.65, primarily driven by a $0.50 per share tax benefit from new Section 174 rules under the One Big Beautiful Bill. Free cash flow guidance lowered to $825–$900 million from $850–$950 million, reflecting the revenue decline. Assumes an adjusted effective tax rate of 16–19%, average diluted shares of 122–123 million, capital expenditures of approximately $100 million, and $235 million cash tax benefit relative to initial guidance.

24/7 Wall St

BAH YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

24/7 Wall St

BAH Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 25 Q3 26

“Booz Allen's third quarter results are on track and reflect disciplined execution in a dynamic environment. We remain focused on building and delivering tech that works for the most important U.S. missions.”

— Horacio Rozanski, Q3 2026 Earnings Press Release

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