Booz Allen Sticks To Bold 2026 Outlook As Backlog Hits $38 Billion

Defense contractor Booz Allen Hamilton (NYSE:BAH) reported a mixed fiscal first quarter on Friday, exceeding analyst expectations for adjusted earnings per share (EPS) but falling slightly short on revenue.

The company reported quarterly adjusted EPS of $1.48, topping the analyst consensus estimate of $1.45. Quarterly sales of $2.92 billion, down by 0.6% year-on-year, missed the street view of $2.94 billion.

The backlog grew by 10.7%, reaching $38 billion, while the quarterly book-to-bill ratio stood at 1.42x. Organic revenue grew by 2.3%. Booz Allen recorded a quarterly operating income of $257 million, compared with $255 million a year ago.

Also Read: Booz Allen Hamilton Downgraded: Analyst Flags Flat Revenue Growth, Margin Pressure

As of June 30, the client staff headcount had decreased by around 1,600 compared to the previous year, marking a 5% decline.

Booz Allen exited the quarter with cash and equivalents worth $711 million. Long-term debt, net of the current portion, totals $3.9 billion. BAH announced a quarterly dividend of 55 cents per share.

Booz Allen Chairman and CEO Horacio Rozanski said the company met expectations in the first quarter and secured contracts to integrate technology into the administration’s mission priorities. He added that Booz Allen is ramping up investments and partnerships across the tech ecosystem to keep delivering for the nation.

Outlook

Booz Allen reiterated fiscal 2026 revenue of $12.00 billion-$12.50 billion versus the analyst consensus estimate of $12.24 billion. The company maintained an adjusted EPS outlook of $6.20-$6.55 versus the $6.40 analyst consensus estimate.

The company reiterated an adjusted EBITDA margin of roughly 11% in the fiscal year 2026, and free cash flow of about $900 million-$1,000 million (prior $700 million-$800 million).

Booz Allen Hamilton stock declined 11% year-to-date. On July 2, CNBC’s Jim Cramer said Booz Allen Hamilton took a hit from DOGE and warned that the pressure isn’t over yet.

Price Action: BAH stock is trading higher by 2.07% to $117.50 premarket at last check Friday.

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