Booz Allen raises FY2027 adjusted EPS outlook to $6.50-$6.70 as Q2 revenue falls 3.9%

Booz Allen Hamilton earns most of its revenue from US defense and intelligence customers, and that side of the business held steady in its fiscal second quarter, which ended on 30 September 2026. Its civil and commercial work did not. Total revenue fell 3.9% to $2.78bn from $2.89bn a year earlier, the company reported on 23 October 2026. Profit still rose: adjusted diluted EPS increased 18.1% to $1.76, and the company raised its full-year adjusted EPS guidance to $6.50-$6.70 from $6.00-$6.35.

In fiscal Q2 2027, national security revenue rose to $2,076m from $2,063m, while civil and commercial revenue fell to $702m from $827m. Revenue excluding billable expenses, which strips out subcontractor and travel costs, slipped 0.8% to $1.96bn. Net income rose 3.4% to $181m and adjusted net income 15.3% to $211m. Adjusted EBITDA fell 3.4% to $313m, but the adjusted EBITDA margin rose 10 basis points to 11.3%. Headcount fell to about 31,000 from 32,500 a year earlier.

Booz Allen said profitability beat its expectations and that its civil business was performing in line with expectations. Total backlog rose 1.9% to $41bn. Free cash flow fell to $263m from $395m. The company deployed $965m of capital in the quarter and will pay a dividend of $0.59 per share on 4 December 2026.