Booz Allen Raises EPS Outlook to $6.70 as Revenue Falls 3.9%
Key Facts
Booz Allen Hamilton reported results on October 23 for the second quarter of fiscal 2027, with revenue of $2.778 billion, down 3.9% year over year. Adjusted net income rose 15.3% to $211 million, while adjusted diluted earnings per share increased 18.1% year over year to $1.76. GAAP earnings per share were $1.50. The results highlight a divergence between lower revenue and stronger adjusted profitability measures. The company reported the results in a filing with the U.S. Securities and Exchange Commission.
Revenue excluding billable expenses was $1.957 billion, down 0.8% from the year-earlier period. The decline in this measure was smaller than the 3.9% drop in total revenue. GAAP net income rose 3.4% to $181 million, while adjusted net income increased at a faster pace of 15.3%. The comparison reflects differing trends in revenue and income measures during the quarter. The filing did not say that the revenue decline was below analysts’ estimates.
Adjusted diluted earnings per share were $1.76, compared with $1.49 in the year-earlier quarter, an 18.1% annual increase. That differs from GAAP diluted earnings per share, which were $1.50 compared with $1.42. Adjusted EBITDA fell 3.4% to $313 million from $324 million. But the adjusted EBITDA margin rose to 11.3% from 11.2%, an increase of 10 basis points. The quarter thus combined a higher margin with lower adjusted EBITDA and total revenue.
The company raised its adjusted earnings-per-share outlook for fiscal 2027 to $6.50–$6.70 from a previous range of $6.00 to $6.35. At the same time, it revised its revenue outlook to a range of $11.3 billion to $11.6 billion, from $11.2 billion to $11.7 billion. The update lifts the upper end of the earnings outlook and lowers the upper end of the revenue outlook. The revenue range also narrowed at both ends, with its lower end remaining above the previous estimate. The official filing did not compare the outlook with analysts’ estimates.
Total backlog was $41 billion in the second quarter, up 1.9% year over year, while the quarterly book-to-bill ratio was 1.5 times. Backlog indicates contracted work, while the ratio compares orders with billings during the quarter. The chief executive said the company was “executing with strength and investing in our next phase of growth.” The filing added that the company is expanding its cybersecurity products and defense technologies. In its prior results, the company reported first-quarter fiscal 2027 results on July 24.
Closing data showed BAH shares ended trading at $78.32 on October 23, then closed at $83.36 on October 26. These prices cover the closes on those dates and do not, by themselves, establish the share movement during the results-announcement session. On October 26, TD Cowen said it raised its rating on the stock to Buy from Neutral and increased its price target to $95 from $77. The firm linked its decision to growth in funded backlog and improving civilian sales trends, while funded backlog stood at $5.7 billion in the September quarter. It also said funded backlog had posted sequential growth for four consecutive quarters.
Across the first half of fiscal 2027, revenue fell 4.1% year over year, while adjusted net income rose 16.6%. These figures add broader context to the second-quarter gap between declining revenue and improving adjusted profitability. The company also announced an upcoming quarterly cash dividend of $0.59 per share. The dividend will be paid on December 4, 2026, to shareholders of record on November 12. The payment date follows the results announcement and annual outlook update.