Al Root

Booz Allen Hamilton posted weak quarterly results and slashed its financial guidance amid what it calls a " funding slowdown." Cost-cutting efforts by the government are hitting home, and shares took it on the chin early Friday.

The technology integrator and solutions provider for government and business announced earnings per share of $1.49 from sales of $2.9 billion for the second quarter of its 2026 fiscal year. Wall Street was looking for EPS of $1.51 and revenue of $3 billion.

"Top and bottom-line performance below forecast driven by continued funding slowdown," the company said in a news release.

Sales declined 8.1% year over year. Earnings per share fell closer to 18%.

Looking ahead, Booz now expects fiscal year 2026 sales to fall between $11.3 billion and $11.5 billion, down from a prior range of $12 billion to $12.5 billion. Wall Street has been projecting $12.1 billion.

EPS is expected to land between $5.45 and $5.55, down from a prior range of $6.20 to $6.55. The consensus call on Wall Street is for $6.30 a share.

All that adds up to a weak quarter and outlook. Booz stock was down 8.4% at 91.84, while S&P 500 and Dow Jones Industrial Average futures were up 0.3% and 0.2%, respectively.

"Our second quarter results reflect a bifurcated market. We are winning work and demand is strong for our leading cyber, AI, and warfighting technologies," said CEO Horacio Rozanski in a news release. "We remain focused on accelerating future growth while building advanced tech that keeps America safe and strong."

One bright spot was orders, which exceeded sales by 1.7 times in the quarter.

It has been a tough year for the company. Coming into Friday trading, shares were down 22% year to date and 40% over the past 12 months. Investors have worried that cost-cutting efforts in the federal government will lead to slowing sales and earnings growth.

Now, those fears have come to fruition. Booz is now forecasting fiscal 2026 revenue will fall in a range with a midpoint of about $11.4 billion. A year ago, Wall Street was projecting $12.8 billion.

Write to Al Root at allen.root@dowjones.com

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October 24, 2025 08:50 ET (12:50 GMT)

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