Booz Allen Posts Adjusted EPS of $1.76, Raises Full-Year Guidance
Key Facts
Booz Allen Hamilton reported adjusted earnings per share of $1.76 in the second quarter of fiscal 2027, beating analyst consensus of $1.48 by $0.28, according to Investing.com. The result came as the company raised its full-year forecasts for earnings and free cash flow, despite revenue falling from a year earlier. Revenue was $2.8 billion, slightly below the estimate of $2.81 billion. It also declined 3.9% from $2.9 billion in the second quarter of fiscal 2026. BAH shares closed at $78.57 on Oct. 22, before rising 2.68% in premarket trading on Oct. 23 after the results were announced.
Earnings indicators showed a mixed picture, with net income improving and adjusted operating earnings declining. Adjusted net income rose 15.3% to $211 million, while adjusted EBITDA fell 3.4% to $313 million. The company said operational execution supported improved profitability, and the margin on this earnings measure rose 10 basis points to 11.3%. This reflects a margin improvement alongside shrinking revenue, while adjusted operating earnings remained below the year-earlier level. The figures put the EPS beat in a broader context than the consensus number alone.
The divergence across the company’s businesses was clear in segment revenue. National security revenue was $2.1 billion, a slight increase from the comparable period. By contrast, civil and commercial revenue fell to $702 million from $827 million in the second quarter of fiscal 2026. The decline highlights a key component of the weakness in total revenue, while national security activity held at a higher level. Chief Executive Horacio Rozanski said the company was “building its products in cybersecurity and defense technology and expanding their reach,” adding that it was integrating superintelligence into national missions.
On the demand side, total backlog reached $41 billion, up 1.9% year over year, while the quarterly bookings-to-billings ratio was 1.5 times. That compares with backlog of $38 billion in the fourth quarter of fiscal 2026, when it rose 3.1% year over year. The figures show the value of accumulated work expanding since the end of the previous fiscal year, while bookings exceeded billings during the quarter. The company cited these indicators alongside its forecast for revenue growth in the current fiscal year, though expected expansion remains limited. The business mix may be a factor in interpreting this trajectory, with civil and commercial activity declining as national security posted slight growth.
The company raised its fiscal 2027 adjusted EPS forecast to a range of $6.50–$6.70 from a previous range of $6.00 to $6.35. At the same time, it narrowed its revenue forecast to $11.3–$11.6 billion, compared with the previous range of $11.2–$11.7 billion, indicating expected growth of 1% to 3%. It also raised its free cash flow forecast to $850–$925 million from $825–$925 million. The revisions combine higher earnings and cash flow ranges with a narrower revenue range, after quarterly revenue missed estimates and declined year over year. They give investors updated figures to track through the rest of the fiscal year.
Booz Allen declared a quarterly cash dividend of $0.59 per share and said it deployed $965 million in capital during the quarter. The company ended fiscal 2026 with revenue of $11.2 billion, down 6.4% year over year, and total backlog of $38 billion, up 3.1%. In the fourth quarter of that year, it reported adjusted diluted EPS of $1.78, up 10.6% year over year, despite a 6.4% drop in revenue. The company announced on Sept. 11 that it would release second-quarter results before its investor call scheduled for Oct. 23, 2026, at 8 a.m. Eastern time. The call is the next announced opportunity to discuss the results and updated forecasts.