Q3 26 EPS
$1.77
BEAT +39.32%
Est. $1.27
Q3 26 Revenue
$2.62B
MISS 3.86%
Est. $2.73B
vs S&P Since Q3 26
-33.2%
TRAILING MARKET
BAH -23.8% vs S&P +9.4%
Market Reaction
Did BAH Beat Earnings? Q3 2026 Results
Booz Allen Hamilton delivered a strikingly split quarter in Q3 FY2026, posting adjusted diluted EPS of $1.77 against a consensus estimate of $1.27, a 39.32% beat, even as revenue of $2.62 billion fell short of the $2.73 billion estimate and declined … Read more Booz Allen Hamilton delivered a strikingly split quarter in Q3 FY2026, posting adjusted diluted EPS of $1.77 against a consensus estimate of $1.27, a 39.32% beat, even as revenue of $2.62 billion fell short of the $2.73 billion estimate and declined 10.2% year-over-year. The primary culprit was a prolonged government shutdown that management estimated cost roughly $50 million in unperformed work and pushed another $60 million into Q4, with the Civil segment bearing the brunt of the damage, sliding to $732 million from $1.01 billion a year earlier. Despite that top-line pressure, a discipline that defense peers have also leaned on helped Booz Allen drive net income up 7.0% to $200 million, while free cash flow nearly doubled to $248 million. Looking ahead, the company narrowed its FY2026 revenue guidance to $11.30 billion to $11.40 billion, but meaningfully raised its adjusted diluted EPS outlook to $5.95 to $6.15, lifted largely by a $0.50 per share tax benefit tied to new Section 174 rules.
Key Takeaways
- • Revenue decline of 10.2% driven by slowed procurement and funding environment including government shutdown
- • Civil segment revenue declined significantly from $1,012M to $732M YoY
- • Defense revenue held flat at approximately $1,454M
- • Net income grew 7.0% driven by lower income tax expense (tax benefit of $13M vs. $61M expense in prior year)
- • Adjusted Diluted EPS grew 14.2% supported by profitability, tax benefits, and lower share count
- • Free cash flow nearly doubled driven by higher collections and lower tax payments
- • Headcount decreased from 35,900 to 31,600 year-over-year
- • Strong contract execution and disciplined cost management partially offset revenue headwinds
BAH YoY Financials
Q3 2026 vs Q3 2025, source: SEC Filings
BAH Revenue by Segment
With YoY comparisons, source: SEC Filings
“Booz Allen's third quarter results are on track and reflect disciplined execution in a dynamic environment. We remain focused on building and delivering tech that works for the most important U.S. missions.”
— Horacio Rozanski, Q3 2026 Earnings Press Release
BAH Earnings Trends
BAH vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
BAH EPS Trend
Earnings per share: estimate vs actual
BAH Revenue Trend
Quarterly revenue: estimate vs actual
BAH Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 26 FY | — | $1.78 | — | $2.78B | -2.88% |
| FY Full Year | $6.08 | $6.51 | +7.13% | $11.22B | -0.73% |
| Q3 26 BEAT | $1.27 | $1.77 | +39.32% | $2.62B | -3.86% |
| Q2 26 MISS | $1.51 | $1.49 | -1.42% | $2.89B | -2.74% |
| Q1 26 BEAT | $1.45 | $1.48 | +2.09% | $2.92B | -0.78% |
| Q4 25 MISS FY | $1.61 | $1.61 | -0.27% | $2.97B | -1.96% |
| FY Full Year | $6.35 | $6.35 | -0.01% | $11.98B | -0.49% |