Booz Allen Hamilton (BAH) Q3 2026 Earnings
How Did BAH Stock React to Q3 2026 Earnings?
S&P 500 over the same 30 days: +0.57%.
Did BAH Beat Earnings? Q3 2026 Results
Yes. Booz Allen Hamilton reported Q3 2026 earnings of $1.77 a share on Jan 23, 2026, beating the $1.27 consensus estimate by 39.3%. Revenue was $2.6B against a $2.7B estimate.
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 <a href="https://247wallst.com/investing/2025/12/05/lockheed-delivers-steady-defense-profits-as-boeing-burns-billions-ramping-production/">defense peers have also leaned on</a> 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.
- 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
“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.”
Booz Allen Hamilton CEO, on the earnings call
What Was Booz Allen Hamilton's Outlook in Q3 2026?
Booz Allen updated its FY2026 guidance: Revenue of $11.3–$11.4 billion (revenue growth of -5.0% to -6.0%), narrowed from $11.3–$11.5 billion due to the prolonged government shutdown and slower funding environment. Adjusted EBITDA of $1,195–$1,215 million with mid-10% margins. Adjusted Diluted EPS raised to $5.95–$6.15 from $5.45–$5.65, primarily driven by a $0.50 per share tax benefit from new Section 174 rules under the One Big Beautiful Bill. Free cash flow guidance lowered to $825–$900 million from $850–$950 million, reflecting the revenue decline. Assumes an adjusted effective tax rate of 16–19%, average diluted shares of 122–123 million, capital expenditures of approximately $100 million, and $235 million cash tax benefit relative to initial guidance.
BAH YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $2.6B | $2.9B | −10.2% |
| Operating Income | $230.0M | $291.2M | −21.0% |
| Net Income | $200.0M | $187.0M | +7.0% |
BAH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.