Booz Allen Hamilton Holding Corp - Class A

Booz Allen Hamilton delivered a disappointing fiscal second quarter, missing on both the top and bottom lines as its civil business continued to buckle under a prolonged government funding slowdown. Adjusted diluted EPS came in at $1.49, falling short of the $1.51 consensus estimate by 1.42%, while revenue of $2.89 billion trailed expectations by 2.74% and declined 8.2% year-over-year, reflecting what CEO Horacio Rozanski called a "bifurcated market," where the company's national security portfolio grew on an adjusted basis even as civil procurement remained deeply challenged. The company responded by cutting headcount to roughly 32,500 from 35,800 a year ago and absorbing $14 million in restructuring-related severance costs in the first half, with a second round of layoffs announced as part of an effort to strip out $150 million in annual expenses. Looking ahead, management sharply reduced full-year fiscal 2026 guidance, now projecting revenue of $11.30 billion to $11.50 billion and adjusted diluted EPS of $5.45 to $5.65, well below prior targets, though a record backlog of $40.19 billion and a 1.7x book-to-bill ratio offered some reassurance about longer-term demand.