Booz Allen Hamilton Holding FY 2026 Earnings Snapshot

Booz Allen Hamilton Holding (BAH) closed FY 2026 with fourth quarter revenue of US$2.8b and basic EPS of US$1.73, with trailing twelve month revenue at US$11.2b and EPS at US$6.92, setting the stage for investors to reassess the stock at a share price of US$78.68. Over recent periods, the company has seen quarterly revenue move between US$2.6b and US$2.9b while basic EPS has ranged from US$1.42 to US$2.17, giving you a clear view of how the top line and per share earnings have tracked through the year. With net income and margins steady enough to support these EPS levels, the latest results put profitability firmly in focus for anyone weighing the balance between earnings pressure and longer term rewards.

See our full analysis for Booz Allen Hamilton Holding.

With the headline numbers on the table, the next step is to see how this earnings profile lines up with the prevailing narratives around Booz Allen's growth prospects, risk profile, and value case.

Trailing Margins Hold Near 7.6%

• Over the last 12 months, Booz Allen converted US$11.2b of revenue into US$851 million of net income, which works out to a 7.6% net margin compared with 7.8% in the prior year.
• Consensus narrative points to higher tech and outcome based contracts as a margin driver, yet the data shows margins at 7.6% with Q4 net income at US$210 million on US$2.8b of revenue. Any margin lift from those contracts is not clearly visible in the latest reported year.
  • Analysts talk about outcome based and fixed price work supporting margin expansion, while the trailing margin is slightly below last year and Q4 net income sits mid range versus the US$174 million to US$269 million seen across FY 2026.
  • For that consensus view to play out, you would want to see future margins move meaningfully above the current 7.6% level rather than slipping away from the prior 7.8% reference point.

EPS Trend Vs Bearish Concerns

• Across FY 2026, quarterly basic EPS moved between US$1.42 and US$2.17, feeding into trailing EPS of US$6.92, while analysts expect earnings to decline about 5.9% per year over the next three years.
• Bears argue that automation, tighter budgets and contract shifts will pressure earnings, and the recent pattern gives them some support because trailing EPS of US$6.92 is below the earlier US$8.19 level seen at the start of FY 2026 and analysts flag negative earnings growth over the most recent trailing year.
  • The quarterly EPS range of roughly US$1.4 to US$2.2, plus trailing net income of US$851 million compared with US$930 million a year earlier, lines up with the cautious view that profit growth is not currently matching the five year annualized 14.4% figure.
  • At the same time, the record backlog and tech heavy contracts that bears worry could get squeezed are not yet reflected in any large swing in EPS, which means the projected 5.9% annual decline is still a forecast rather than something fully shown in the trailing numbers.

Stay with this cautious angle if you think the recent EPS and net income pattern is the start of a longer earnings downshift rather than a pause in a longer record of growth, then the detailed Bear case is worth reading next. 🐻 Booz Allen Hamilton Holding Bear Case

Low 11.1x P/E And DCF Gap

• At a share price of US$78.68, the stock trades on an 11.1x P/E, below the roughly 19x industry and peer averages, and also below a DCF fair value of about US$152.10 and an analyst price target of US$95.75.
• Bulls highlight the wide gap between the current price, the DCF fair value and the analyst target, and the numbers clearly support that argument because the stock sits at roughly half of the US$152.10 DCF estimate with a lower P/E than peers while the business still produced US$11.2b of trailing revenue and US$851 million of net income.
  • Supporters point to tech heavy contracts, a large backlog and federal demand as reasons that an 11.1x P/E looks conservative versus the 19x industry marker. The same dataset also shows forecast earnings declines of around 5.9% a year, which may help explain why the discount exists.
  • If you find the combination of a 3% dividend yield, sub industry P/E and a gap to both the US$95.75 target and the US$152.10 DCF fair value compelling, then the bullish case leans heavily on those valuation and cash flow arguments rather than on rapid earnings growth in the near term.

If you want to see how supporters connect this low P/E and large gap to DCF fair value with Booz Allen's contract pipeline and tech positioning, the Bull case lays out that side of the story in full. 🐂 Booz Allen Hamilton Holding Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Booz Allen Hamilton Holding on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

The data so far presents mixed messages, with clear risks on one side and real potential rewards on the other. Consider moving quickly, reviewing the figures yourself, and weighing both sides using the 3 key rewards and 2 important warning signs.

See What Else Is Out There

Recent results show slipping margins from 7.8% to 7.6%, trailing EPS below earlier levels, and forecasts pointing to earnings declining about 5.9% per year.

If you are concerned about that earnings pressure and would rather focus on companies with stronger upside potential at current prices, use the 49 high quality undervalued stocks to quickly scan ideas that better match that goal.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.