Booz Allen raises profit outlook as backlog grows despite revenue dip

Booz Allen Hamilton raised its full-year profit forecast above its prior range after a quarter of stronger-than-expected margins, even as revenue slipped, according to its 8-K earnings release.

Revenue for the fiscal second quarter ended Sept. 30 fell 3.9% to $2.78 billion, and revenue excluding billable expenses dipped 0.8% to $1.96 billion. Net income rose 3.4% to $181 million, or $1.50 a diluted share, up from $1.42. Adjusted EPS climbed 18.1% to $1.76.

Guidance raised

The government technology contractor now expects fiscal 2027 adjusted EPS of $6.50 to $6.70, up from $6.00 to $6.35. It narrowed its revenue outlook to $11.3 billion to $11.6 billion, from $11.2 billion to $11.7 billion, and raised the low end of its adjusted EBITDA range to $1.26 billion. Free cash flow guidance is now $850 million to $925 million.

"Booz Allen is executing exceptionally well and investing in our next phase of growth," Chairman and CEO Horacio Rozanski said in the release.

Orders and cash

Total backlog rose 1.9% from a year earlier to $41 billion, and the quarterly book-to-bill ratio was 1.5x. The company said National Security showed momentum while its civil business performed in line with expectations.

Adjusted EBITDA fell 3.4% to $313 million, though the margin on revenue rose 10 basis points to 11.3%. Free cash flow was $263 million, down from $395 million a year ago. Booz Allen said it deployed $965 million of capital in the quarter.

The board declared a quarterly dividend of $0.59 a share, payable Dec. 4 to holders of record on Nov. 12. The company also filed its quarterly 10-Q the same morning.

By the numbers

• Revenue: $2.78 billion, down 3.9%
• Net income: $181 million, up 3.4%
• Adjusted EPS: $1.76, up 18.1%
• Backlog: $41 billion; book-to-bill 1.5x
• New FY27 adjusted EPS guidance: $6.50 to $6.70
• Dividend: $0.59 a share

Sources

1. Booz Allen Hamilton Holding Corporation, Form 8-K with Exhibit 99.1 filed Oct. 23, 2026, accession 0001628280-26-066971
2. Booz Allen Hamilton Holding Corporation, Form 10-Q filed Oct. 23, 2026, accession 0001628280-26-066973

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