Why Booz Allen Hamilton Stock Crashed Today
Key Points
Booz Allen missed on earnings this morning.
Booz also lowered guidance -- for sales, profits, and free cash flow, too.
- 10 stocks we like better than Booz Allen Hamilton ›
Booz Allen Hamilton (NYSE: BAH) stock tumbled 8.6% through 11:10 a.m. ET Friday after missing on its fiscal Q2 2026 earnings report this morning, then lowering guidance for the year.
Expected to earn $1.51 per share (adjusted for one-time items) on sales of just under $3 billion, Booz ended up reporting an adjusted profit of $1.49 per share, an sales of $2.9 billion.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
Booz Allen Q2 earnings
It gets worse. Booz's earnings as calculated according to generally accepted accounting principles (GAAP) came in significantly below the "adjusted" figure -- just $1.42 per share. This represents a 53% drop year over year. (The drop in adjusted earnings was under 18%.)
Revenue declined only 8%.
Booz blamed the weak results on a "continued funding slowdown." That's not referring to the government shutdown, mind you, which didn't kick in until the quarter was over. Indeed, Booz noted that its important national security portfolio actually grew "solidly" in the quarter. Rather, it was the company's civil business that was "experiencing delayed recovery" in Q2.
Booz's bleak forecast
Continuing the bad news, Booz lowered guidance through the end of its fiscal 2026. Despite boasting of a "record Q2 backlog of $40 billion and quarterly book-to-bill ratio of 1.7x," Booz warned full-year revenue will not exceed $11.5 billion (a 4% reduction in guidance, and at least a 4% decline year over year).
Adjusted earnings (which as we've already seen are weaker than GAAP earnings), will be no more than $5.65 per share (at least 9% worse than expected), and free cash flow will be about $900 million. The good news is that this still leaves Booz stock looking rather cheap at only 12.6 times FCF today.
The bad news is that, with sales shrinking, investors may not care.
Should you invest $1,000 in Booz Allen Hamilton right now?
Before you buy stock in Booz Allen Hamilton, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Booz Allen Hamilton wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $600,550!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,116,616!*
Now, it’s worth noting Stock Advisor’s total average return is 1,032% — a market-crushing outperformance compared to 192% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of October 20, 2025
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Booz Allen Hamilton. The Motley Fool has a disclosure policy.
Recommended Articles
