Booz Allen Posts $2.8 Billion in Revenue, Down 3.9% Year Over Year
Key Facts
Booz Allen Hamilton reported revenue of $2.8 billion in the second quarter of fiscal 2027, down 3.9% year over year, according to results filed with the U.S. Securities and Exchange Commission. The company attributed the decline mainly to slower procurement in the prior period, which delayed program starts, particularly among civilian customers. It said the slower procurement environment led to a slower start to programs in the current year. This was reflected in headcount and billable expenses, both of which declined, according to the company. By contrast, net income rose during the quarter, while adjusted earnings also improved, presenting a mixed picture of operating and financial performance.
Net income was $181 million, up 3.4% from the same period a year earlier, according to the company's announcement. Adjusted net income reached $211 million, up 15.3% year over year. The increase came despite lower revenue, as the company linked weaker activity to delayed program starts. It also said slower procurement, particularly among civilian customers, affected the pace of billable work. The income figures show a divergence between growth in reported earnings and a decline in revenue during the quarter.
Total backlog stood at $41 billion at the end of the second quarter, up 1.9% year over year, the company said. The ratio of the value of new contract awards to revenue during the quarter was also 1.5 times. Backlog measures contracted work that has not yet converted into revenue, while the new-awards-to-revenue ratio compares new contract awards with the revenue the company recorded during the period. These figures offer an indication of contract flow in the quarter, alongside the annual decline in revenue.
Booz Allen raised its fiscal 2027 adjusted diluted earnings-per-share guidance range to $6.50–$6.70, from a previous range of $6.00 to $6.35, according to its results update. Chief Executive Horacio Rozanski said the company “is building our cybersecurity and defense technology products and expanding their reach.” He added that the company aims to bring superintelligence into sensitive national missions. Total capital deployment was $965 million in the second quarter. The higher annual guidance places expected growth in adjusted earnings alongside the revenue decline recorded during the quarter.
Regarding the Sentinel program, the U.S. Government Accountability Office said the missile's first test flight was delayed by about 4 years compared with original estimates and is now scheduled for March 2028. The U.S. Air Force estimated the program would cost at least $141 billion, while the office said the actual cost remains uncertain. The company had announced on May 4, 2026, that it had received an agreement from the Space Force's Space Systems Command to develop and deliver a prototype space-based missile defense system under the Golden Dome-related space interceptor program, without disclosing the agreement's financial value.
In a separate contract, the U.S. Department of War announced on July 10, 2026, that it had awarded Booz Allen a contract with a maximum value of $25,342,035 for research, development, test and evaluation of quantum information science technologies. The department set July 9, 2031, as the expected completion date. This announcement does not concern the Sentinel contract attributed to the company in the circulating account. In the stock market, the company's shares, listed under the ticker BAH, closed at $86.22 on November 13, 2026, according to EL7 data. The closing price reflects that day's session, while the cited large contracts remain unverified in the available information.