BAH NYSE Russell 1000 Earnings call
Booz Allen Hamilton (BAH) · Q2 2026 results and valuation
Share price: $86.89 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q1 2027 · published 24 Jul 2026 and 22 May 2026
Net income down 3.2% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−3.2%
Net income vs Q1 2026
Outlook given
Net income 198.0M vs 204.5M
Revenue +0.6%
2 · How management spoke
Upbeat
More upbeat than 65% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Figure
The funded backlog increased by 23% as demand remained strong, indicating growth in the company's project pipeline.
Valuation
Is Booz Allen Hamilton undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-03-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 6.6% growth a year (3-year revenue growth), the model's fair value is $117.53 a share — the stock trades 26% below it. Today's price assumes 3.4% growth a year.
Current price
$86.89
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+3.4% for 10 yrs
Fair value / share
$117.53
Buy below
$88.15
Price vs fair value
Undervalued 26%
Price vs buy-below price
Undervalued 1%
Read between the lines
-
Key theme
AI-enabled delivery and outcomes-based contracting are expected to boost customer value and profit growth.
Source quote
“We said our civil and national security portfolios will continue to have different trajectories, with our growth coming from national... We said we needed to focus on strong execution in a challenging macro environment. And we said we will continue accelerating our transformation and investing organically and inorganically in the areas that will drive our future growth.”
-
Guidance
Civil revenue expected to fall double digits sequentially next quarter as some contracts end.
Source quote
“We expect AI-enabled delivery, combined with products and outcomes-based contracting to help us deliver more value to customers and drive bottom line growth.”
-
Guidance
Civil revenue is expected to see a sequential double-digit decline next quarter because some contracts are ending.
Source quote
“We expect a sequential double-digit decline in civil revenue next quarter due to some contracts that are ending.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Through exceptional execution, we delivered solid profitability, and we continue to invest and transform.”
“Looking ahead, we are ramping up our wins, continuing to expand the pipeline, pulling our defense tech and cyber solutions through civil agencies and building on our excellent track record...”
“Our results today, particularly profitability and cash flow, highlight our strong operational execution across the portfolio, building on the momentum that we saw at the end of last fiscal year.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 2.80B | 2.78B | +0.6% | 2.92B | −4.2% |
| Gross profit | 1.46B | — | 1.50B | −2.5% | |
| Operating income | 279.0M | 263.0M | +6.1% | 257.0M | +8.6% |
| Net income | 198.0M | 204.5M | −3.2% | 271.0M | −26.9% |
| EPS | 1.63 | 1.68 | −3.0% | 2.16 | −24.5% |
| P/E today 10.8 | 9.5 | 11.3 | −1.8 | 12.8 | −3.3 |
Topics
Most discussed now
- New Its business in cyber really lives at the intersection of its exquisite trade craft that Booz Allen Hamilton has honed over a...
- New Inside of that, on cyber, I would point you to the fact that Booz Allen Hamilton has a pretty complete stack that...
- New Behind that is the Vellox suite, which is an Agentic suite that gives it a real head start in what's...
- Historical precedent suggests this will complicate the budget process and create some funding uncertainty, particularly towards the end of…
- This business grew in the first quarter and is expected to continue building momentum over the fiscal year.
Faded since Q1 2026
- Dropped FY '27 has some unique dynamics because even the headcount conversation typically was a conversation where headcount grew evenly during...
- Fading Booz Allen Hamilton's work focuses on a critical element of a prototype system for space-based missile defense.
- Fading Booz Allen Hamilton generated robust free cash flow of $951 million and deployed $1.1 billion of capital through strategic investments…
- Fading Booz Allen Hamilton's national security portfolio grew 1.6% year-over-year in the fourth quarter, this was primarily driven by strong…
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Material agreement; New financial obligation; Other events · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Material agreement; Regulation FD disclosure · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K