Booz Allen Raises EPS Forecast to $6.50–$6.70 Despite 3.9% Revenue Decline

Key Facts

Booz Allen Hamilton raised its fiscal 2027 adjusted diluted earnings-per-share guidance after reporting $1.76 in the second quarter, above analysts’ estimate of $1.48, according to the company’s statement and coverage attributed to Reuters. But quarterly revenue fell 3.9% to $2.778 billion in the three months ended September 30, 2026, from $2.890 billion in the year-earlier period. The company raised its annual EPS guidance range to $6.50–$6.70, from $6.00–$6.35 previously. The results show a divergence between improving profitability and declining sales, while published coverage differed on the stock’s premarket move on October 23. CEO Horacio Rozanski said the company was “executing our plan with strength and investing in our next phase of growth.”

Adjusted EPS was $1.76, up 18.1% year over year from $1.49 in the second quarter of fiscal 2026, according to the earnings release. Coverage attributed to Reuters said earnings exceeded analysts’ estimate of $1.48. By contrast, quarterly revenue declined from $2.890 billion to $2.778 billion, a drop of 3.9%. The company thus combined EPS growth with a revenue decline, two opposing trends in the quarter’s performance. The company kept its updated annual revenue guidance within a range of $11.3 billion to $11.6 billion, compared with the previous range of $11.2 billion to $11.7 billion.

The divergence between the company’s two segments was clear in the quarterly results: civilian business revenue fell 15% year over year, while national security revenue rose 1% on a reported basis. Excluding billable expenses, national security revenue grew 6%, according to coverage attributed to Reuters. Management described the civilian activity as “a business in transition,” citing the deferral of some contract awards and procurements to later periods. The divergence reflects the quarter’s revenue mix: weakness in civilian activity was offset by growth in national security, with the growth rate varying depending on how expenses are calculated. The company did not describe civilian business performance as below expectations; the coverage said it was in line with them.

Some profitability measures improved while others declined. Adjusted net income rose 15.3% to $211 million, while adjusted EBITDA fell 3.4% to $313 million. Adjusted EBITDA margin increased 10 basis points to 11.3%, according to the company’s statement. Free cash flow was $263 million for the quarter, compared with $395 million in the year-earlier period. These figures put growth in net income and margin expansion alongside declines in EBITDA and free cash flow, with performance measures moving in different directions.

Total backlog stood at $41 billion as of September 30, 2026, up 1.9% year over year, while the quarterly book-to-bill ratio was 1.5 times, according to the earnings release. These indicators measure the scale of backlog and bookings relative to quarterly revenue, alongside the decline in revenue recorded during the period. In premarket trading, coverage attributed to Reuters reported a 0.37% decline to $78.28, from a previous close of $78.57 on October 22. Another report published before the market opened cited a 2.68% rise in premarket trading after the results announcement. The conflicting moves merit reporting as stated in each account, without asserting a single direction for the stock after the announcement.

On dividends, the company announced a quarterly cash payment of $0.59 per share, payable to shareholders of record on November 12, 2026, on December 4, 2026. Fiscal 2027 revenue guidance remains within a range of $11.3 billion to $11.6 billion, after the previous range’s lower and upper bounds were revised to $11.2 billion and $11.7 billion. Updated adjusted diluted EPS guidance spans $6.50 to $6.70, compared with $6.00 to $6.35 previously. The updates combine a higher earnings outlook with a narrower annual revenue range, while quarterly revenue came in below the year-earlier period and EPS topped estimates. The dividend payment in December follows the shareholder record date announced for November.