Highlights

  • Revenue for the quarter ended 30 September 2026 fell 3.9% to US$2.78 billion, while diluted EPS rose 5.6% to US$1.50.
  • Adjusted diluted EPS climbed 18.1% to US$1.76, helped by a lower tax charge during the quarter.
  • Total Backlog reached about US$40.9 billion, up 1.9%, with a quarterly book-to-bill ratio of 1.5 times.
  • Directors declared a quarterly Dividend of US$0.59 per share, payable on 4 December 2026 to holders of record on 12 November.

Booz Allen Hamilton Holding Corporation (NYSE:BAH) has lifted its Earnings outlook for fiscal 2027 even as quarterly Revenue slipped, reporting on 23 October 2026 that adjusted diluted EPS for the second quarter rose 18.1% to US$1.76.

The McLean, Virginia-based government technology and consulting firm now expects full-year adjusted diluted EPS of US$6.50 to US$6.70, above its prior range of US$6.00 to US$6.35, while narrowing its revenue forecast.

Civil Decline Weighs on Second-Quarter Revenue

For the second quarter of fiscal 2027, which ended on 30 September 2026, revenue fell 3.9% to US$2.78 billion and revenue excluding billable expenses eased 0.8% to US$1.96 billion. The National Security segment, which now includes the former Defense and Intelligence businesses, generated US$2.08 billion, up slightly from US$2.06 billion. Civil and Commercial revenue dropped about 15% to US$702 million, a performance management said was in line with expectations.

Operating income declined to US$245 million from US$283 million, partly reflecting US$17 million of other corporate expenses tied mainly to the Acquisition of Defy Security in the first quarter and a second Business acquired during the second quarter. Net Income still rose 3.4% to US$181 million as income tax expense fell to US$18 million from US$58 million.

Backlog Grows as Headcount Falls

Total backlog increased 1.9% to about US$40.9 billion at 30 September 2026, including funded backlog of US$5.71 billion. The quarterly book-to-bill ratio was 1.5 times and the trailing 12-month ratio held at 1.1 times. Headcount declined to about 31,000 from about 32,500 a year earlier.

Adjusted EBITDA, a non-GAAP measure, fell 3.4% to US$313 million, though the Margin on revenue improved 10 basis points to 11.3%. Free Cash Flow for the quarter dropped 33.4% to US$263 million, but six-month free cash flow rose 6.7% to US$524 million.

Acquisitions Lift Leverage

Booz Allen deployed US$965 million of Capital in the quarter. In the first half, it paid US$934 million for acquisitions, invested US$155 million strategically and repurchased US$170 million of shares. Total Debt stood at US$4.41 billion against cash of US$334 million, lifting the net Leverage ratio to 3.3 times from 2.5 times.

Updated Fiscal 2027 Guidance

Management now forecasts fiscal 2027 revenue of US$11.3 billion to US$11.6 billion, or growth of 1.0% to 3.0%, narrowed from US$11.2 billion to US$11.7 billion. Adjusted EBITDA is expected at US$1.26 billion to US$1.29 billion, with a margin of about 11%, and free cash flow at US$850 million to US$925 million. The outlook assumes an effective tax rate of 16% to 19% and 118 million to 120 million diluted shares.

Chairman and Chief Executive Officer Horacio Rozanski said the company is investing in its next phase of growth, including scaling cyber and defense technology products and applying AI to critical missions. Shares closed at US$88.49 on 30 October 2026, up 5.06% on the day, giving a market Capitalization of about US$10.5 billion.