Booz Allen Hamilton Holding Corporation · BAH · FY2026 Q2 · Calendar Q4 2025
Booz Allen cuts guidance as civil slowdown weighs on results
The quarter weakens the near-term growth case: civil-government pressure led to lower guidance, while national-security growth, substantial bookings, and cost reductions provide evidence for a more selective medium-term recovery case.
Earnings scorecard
Reported versus consensusMarket reaction
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Transcript intelligence
What changed
Compared with the prior-quarter analysis, management's tone shifted from confident to cautious and guidance sentiment changed from maintained to lowered. The current analysis highlights a civil-government decline, a $150 million cost-reduction program, and stronger emphasis on national-security demand and AI-enabled efficiency.
Guidance delta
Management lowered full-year revenue guidance to $11.3-$11.5 billion, with adjusted EBITDA margin in the mid-teens and free cash flow of $850-$950 million.
Key takeaways
- Civil government revenue declined roughly 22% year over year, driving the guidance reduction.
- National security grew about 5% year over year and generated $7.2 billion of bookings.
- Management is pursuing $150 million of annualized cost reductions and greater internal AI adoption.
- Cyber, AI, war-fighting technology, quantum, and outcome-based contracting remain strategic focus areas.
Management priorities
- Invest in cyber, AI, edge war-fighter technologies, quantum, and AI-native 6G.
- Productize ground-system and fire-control offerings, including Golden Dome-related capabilities.
- Expand outcome-based and commercial contract models.
- Continue strategic technology partnerships and venture investments.
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Try FN2 freeCompany context
Snapshot as of publicationBooz Allen Hamilton Holding Corporation (BAH) operates as a prominent consulting and technology firm, offering a diverse range of services to governmental bodies, commercial enterprises, and non-profit organizations both domestically and internationally. Their core offerings encompass strategic management and technology advisory, with a focus on areas like business strategy, human resources, and operational efficiency across various sectors. A significant aspect of their work involves advanced analytics.…
Historical context
All BAH earningsIndustrials peers this season
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| FIX Comfort Systems USA, Inc. | FY2026 Q3 · Calendar Q4 2026 | +8.2% | -8.5% | Comfort Systems USA: Strong Growth, Record Backlog, Margin Watchpoints |
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| SNA Snap-on Incorporated | FY2026 Q3 · Calendar Q4 2026 | -5.9% | -3.4% | Snap-on: C&I strength offsets organic sales pressure in Q3 |
| HON Honeywell International Inc. | FY2026 Q3 · Calendar Q4 2026 | +4.6% | +1.7% | Honeywell Raises 2026 Outlook as Backlog and Forge Support Growth |
| LMT Lockheed Martin Corporation | FY2026 Q3 · Calendar Q4 2026 | +6.0% | +7.0% | Lockheed Martin: backlog and guidance rise, with execution risks |
| NSC Norfolk Southern Corporation | FY2026 Q3 · Calendar Q4 2026 | +4.6% | +3.1% | Norfolk Southern posts strong Q3 as capex outlook rises |
Latest beats and misses
Who reports nextBeat on EPS
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Missed on EPS
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- BBDFY2026 Q3 · October 22, 2026-7.7% EPS+3.0% move
- SNAFY2026 Q3 · October 22, 2026-5.9% EPS-3.4% move
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- VRSNFY2026 Q3 · October 22, 2026-2.0% EPS-0.9% move
- HBANMFY2026 Q3 · October 22, 2026-5.3% EPS+0.5% move
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-10-27T02:20:44.102702+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-27T02:20:44.099669+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-27. For educational purposes only; not investment advice.