Booz Allen Raises FY2027 Adjusted EPS Forecast to $6.50–$6.70
Key Facts
Booz Allen Hamilton raised its forecast for adjusted diluted earnings per share for fiscal 2027 to $6.50–$6.70, from $6.00–$6.35 previously, according to its second-quarter results statement published on October 23, 2026. At the same time, the company narrowed its revenue forecast to $11.3–$11.6 billion, compared with a previous range of $11.2–$11.7 billion. It also revised its revenue growth estimate to 1.0–3.0%, from 0–4.0%. The company said the floor of its free cash flow forecast rose to $850 million from $825 million, while the ceiling remained $925 million. The revisions point to improved profit and minimum cash flow expectations alongside a narrower sales growth range.
The outlook revision followed a quarter in which revenue fell while adjusted profitability measures increased. The company reported revenue of $2.778 billion for the three months ended September 30, 2026, down 3.9% from the same period a year earlier. Revenue excluding reimbursable expenses was $1.957 billion, a year-on-year decline of 0.8%. By contrast, adjusted net income rose 15.3% to $211 million, and adjusted diluted earnings per share increased 18.1% to $1.76. The adjusted figures put reported earnings growth alongside a contraction in quarterly revenue.
Adjusted earnings per share for the quarter topped analysts’ estimate of $1.48, according to Investing.com, while revenue fell short of their $2.81 billion estimate, coming in at about $2.8 billion, the same source said. Booz Allen said the better-than-expected profitability was driven by “strength in operational execution.” The company added that its national security portfolio was gaining momentum, while its civil business was tracking in line with expectations. Chief Executive Horacio Rozanski said the company was “executing with exceptional strength and investing in its next phase of growth.” The explanation puts the company’s focus on operational performance and its national security portfolio, while quarterly revenue remains below its level a year earlier.
For the first half of fiscal 2027, revenue was $5.578 billion, down 4.1% from the same period a year earlier. Adjusted net income for the half, however, rose 16.6% to $428 million. At the end of the second quarter, total backlog reached $41 billion, up 1.9% year on year. The book-to-bill ratio was 1.5 times during the quarter. These figures present a mix of lower revenue recorded so far, higher adjusted earnings and backlog growth.
The company reported that quarterly free cash flow fell to $263 million, compared with $395 million in the corresponding quarter of fiscal 2026. Its fiscal 2027 guidance assumes an effective tax rate of 16% to 19% and an average diluted share count of 118 million to 120 million. It also assumes capital expenditures of about $200 million. Booz Allen completed its acquisition of Ultra I&C Mission Solutions on August 24, 2026, for $720 million. The deal closed about two months before the outlook revision was announced, but the results statement did not cite the acquisition as a reason for the changes.
After the results and earnings forecast revision were announced, the company’s shares rose about 3% to $81 in premarket trading on October 23, according to Reuters via Boursorama. Booz Allen declared a quarterly cash dividend of $0.59 per share, payable to shareholders of record on November 12, 2026, with payment due on December 4. The company set January 23, 2027, as the date for reporting its fiscal 2027 third-quarter results. That announcement will be the next milestone in the fiscal year covered by the revised outlook. These dates follow a quarter that combined a year-on-year revenue decline with higher adjusted profitability.