Booz Allen Stock Declines 6.4% Since Fiscal Q2 Earnings

Booz Allen Hamilton Holding Corp.’s BAH reported second-quarter fiscal 2026 earnings, which met the Zacks Consensus Estimate, but revenues missed the same.The unimpressive results and weak guidance failed to impress the market, as the stock has plunged 6.4% since the release of results on Oct. 24, 2025.BAH’s FY26 OutlookFor fiscal 2026, BAH expects revenues to be in the range of $11.3-$11.5 billion compared with the prior view of $12-$12.5 billion. The midpoint of the guided range ($11.40 billion) was slightly below the Zacks Consensus Estimate of $11.42 billion.The revenue growth is anticipated to be in the range of 4-6%.It expects an adjusted diluted EPS in the range of $5.45-$5.65 per share compared with prior guidance of $6.20-$6.55. The midpoint of the guided range ($5.55) was below the Zacks Consensus Estimate of $6.08 billion. Free cash flow is expected in the band of $850-$950 million.Quarterly adjusted EPS of $1.49 came in line with the Zacks Consensus Estimate and decreased 17.7% from the year-ago fiscal quarter’s actual. The company reported revenues of $2.89 billion, which missed the consensus estimate by 3.1% and decreased 8.15% on a year-over-year basis. Revenues, excluding billable expenses, were $1.97 billion, down 10.5% 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 QuoteBAH’s Backlogs Increase in Q2The total backlog increased 2.9% from the year-ago quarter to $40 billion, missing our estimate of $47.25 billion. The funded and unfunded backlogs amounted to $5.4 billion and $10.67 billion, respectively. The funded backlog decreased 6.1%, missing our expectation of $6.5 billion. The unfunded backlog rose 19.3%, lagging our estimate of $10.88 billion.Priced options declined 1% to $24.08 billion, missing our expectation of $29.83 billion. The book-to-bill ratio stood at 1.7 compared with 2.4 in the year-ago quarter. The headcount of 32,500 declined 9.2% on a year-over-year basis.BAH’s Q2 EBITDA Margins RiseAdjusted EBITDA amounted to $324 million, a decrease of 11% from the year-ago quarter but beat our estimate of $321.4 million. The adjusted EBITDA margin on revenues of 11.2% decreased 40 basis points on a year-over-year basis.Key Balance Sheet & Cash Flow Numbers of BAHBooz Allen exited the quarter with cash and cash equivalents of $816 million compared with $885 million in the September-end quarter of 2025. Long-term debt (net of current portion) was $3.88 billion, down 1% compared with $3.92 billion at the end of fiscal 2025.The company generated $421 million in net cash from operating activities. Capital expenditure was $279 million. The free cash flow was $395 million.Booz Allen currently has a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings SnapshotOmnicom Group Inc. OMC reported impressive third-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.Earnings of $2.15 per share beat the consensus estimate by 4.2% and increased 10.3% year over year. Total revenues of $4.04 billion surpassed the consensus estimate by 0.4% and rose 4% year over year. The increase in the top line was led by a jump of 2.6% in revenues from organic growth.ManpowerGroup, Inc. MAN reported impressive third-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.Quarterly adjusted earnings per share (EPS) came in at 83 cents, which beat the Zacks Consensus Estimate by 1.2% but decreased 35.7% year over year. Total revenues of $4.63 billion surpassed the consensus estimate by 0.6% and rose 2.3% year over year. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ManpowerGroup Inc. (MAN): Free Stock Analysis Report Omnicom Group Inc. (OMC): Free Stock Analysis Report Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks