Booz Allen Hamilton Holding Corporation (BAH) Q2 2026 Financial Results Summary

2025-10-24 · Stocks · QuoteReporter

Booz Allen Hamilton (BAH) Q2 2026 Financial Results Summary

Release Date: October 24, 2025

Booz Allen Hamilton Holding Corporation (NYSE: BAH) reported its financial results for the second quarter of fiscal 2026. The results indicate a decline in both top and bottom-line performance, primarily due to a continued slowdown in funding, while showing resilient growth in their national security portfolio. Below is a summary of the key financial metrics and operational updates.

Key Financial Highlights for Q2 2026

Revenue:
Declined 8.1% year-over-year to $2.9 billion
Adjusted Revenue Excluding Billable Expenses decreased 9.5% to $1.97 billion.
Excluding prior year change to the provision for claimed costs, revenue declined 4.7%.
Net Income:
Recorded at $175 million, a decrease of 55.1% from the prior year.
Adjusted Net Income:
Reported at $183 million, down 21.5% year-over-year.
Adjusted EBITDA:
Decreased to $324 million, an 11.0% decline compared to the previous year.
Adjusted EBITDA Margin on Revenue:
Fell by 40 basis points to 11.2%.
Adjusted Diluted EPS:
Decreased 17.7% to $1.49.
Free Cash Flow:
Decreased to $395 million from $563 million, a drop of 29.8%.

Quarterly Operational Metrics

Book-to-Bill Ratio:
Quarterly ratio at 1.7x, and trailing twelve-month ratio at 1.1x.
Total Backlog:
Reached a record $40 billion, representing a 2.9% increase year-over-year.

First Half Fiscal 2026 Summary

Revenue:
Down 4.5% year-over-year to $5.8 billion.
Net Income:
Reported at $446 million, a decrease of 19.6% compared to the same period last year.
Adjusted Net Income:
Down 11.1% to $367 million.
Adjusted EBITDA:
Declined by 4.7% to $635 million.
Adjusted Diluted EPS:
Down 6.9% to $2.97.
Free Cash Flow:
Reduced to $491 million from $583 million, reflecting a 15.8% decrease.

Shareholder Actions

Booz Allen Hamilton declared a regular quarterly dividend of $0.55 per share, which will be payable on December 2, 2025 to stockholders of record on November 14, 2025.

Share Repurchase Plan

The company repurchased 2.7% of its outstanding shares in the first half of fiscal 2026, with $279 million allocated for capital deployment during this period.

Fiscal Year 2026 Guidance Update

Adjusted revenue guidance has been lowered, with projected revenue now between $11.3 billion and $11.5 billion, reflecting a growth forecast of -4.0% to -6.0%.
Adjusted EBITDA guidance is updated to $1.190 billion to $1.220 billion, with an adjusted EBITDA margin target in the mid 10% range.
Adjusted diluted EPS guidance is adjusted to between $5.45 and $5.65.
Free cash flow forecast is now set at $850 million to $950 million.

Operational Context

Horacio Rozanski, Chairman and CEO, commented on the bifurcated market environment, asserting that while certain sectors are underperforming, they are winning work in key areas like cyber, AI, and warfighting technologies. The company is poised to accelerate growth while focusing on maintaining advanced technologies aimed at national security.

Conclusion

Booz Allen Hamilton’s Q2 2026 results reflect challenges due to funding slowdowns, despite a solid performance in areas critical to national security. The company’s proactive adjustments to its financial outlook and shareholder returns demonstrate a commitment to maintaining value amidst market fluctuations. The upcoming quarterly dividend indicates ongoing support for shareholders despite current challenges.

	2025	2024	2025	2024
	Three Months Ended September 30	Six Months Ended September 30
Revenue	$ 2,890	$ 3,146	$ 5,814	$ 6,088
Operating costs and expenses:
Cost of revenue	1,340	1,362	2,763	2,734
Billable expenses	918	968	1,799	1,913
General and administrative expenses	308	225	631	554
Depreciation and amortization	41	42	81	83
Total operating costs and expenses	2,607	2,597	5,274	5,284
Operating income	283	549	540	804
Interest expense, net	(48)	(46)	(92)	(84)
Other (expense) income	(2)	10	1	7
Income before income taxes	233	513	449	727
Income tax expense	58	123	3	172
Net income	$ 175	$ 390	$ 446	$ 555
Earnings per common share:
Basic	1.42	3.02	3.59	4.29
Diluted	1.42	3.01	3.58	4.27

	September 30, 2025	March 31, 2025
Assets (unaudited)
Current assets:
Cash and cash equivalents	$ 816	$ 885
Accounts receivable, net	2,217	2,271
Prepaid expenses and other current assets	188	157
Total current assets	3,221	3,313
Property and equipment, net of accumulated depreciation	171	177
Operating lease right-of-use assets	160	178
Intangible assets, net of accumulated amortization	537	563
Goodwill	2,405	2,405
Deferred tax assets	244	332
Other long-term assets	415	344
Total assets	$ 7,153	$ 7,312
Liabilities and stockholders’ equity
Current liabilities:
Current portion of long-term debt	$ 83	$ 83
Accounts payable and other accrued expenses	1,001	987
Accrued compensation and benefits	675	702
Operating lease liabilities	41	41
Other current liabilities	34	33
Total current liabilities	1,834	1,846
Long-term debt, net of current portion	3,877	3,915
Operating lease liabilities, net of current portion	160	180
Other long-term liabilities	286	368
Total liabilities	6,157	6,309
Stockholders’ equity:
Common stock, Class A — $0.01 par value — authorized, 600,000,000 shares; issued, 169,111,128 shares at September 30, 2025 and 168,522,544 shares at March 31, 2025; outstanding, 122,025,314 shares at September 30, 2025 and 124,879,004 shares at March 31, 2025	2	2
Treasury stock, at cost — 47,085,814 shares at September 30, 2025 and 43,643,540 shares at March 31, 2025	(3,459)	(3,082)
Additional paid-in capital	1,105	1,042
Retained earnings	3,378	3,070
Accumulated other comprehensive (loss) income	(30)	(29)
Total stockholders’ equity	996	1,003
Total liabilities and stockholders’ equity	$ 7,153	$ 7,312