Booz Allen Raises Fiscal 2027 Adjusted EPS Outlook

The Tip Desk · October 24, 2026 · 3 min read

The company lifted its adjusted diluted earnings range to $6.50–$6.70 after a quarter in which adjusted diluted EPS rose 18.1% to $1.76.

Booz Allen Hamilton Holding Corporation (BAH) raised its fiscal 2027 adjusted diluted earnings outlook to $6.50–$6.70 from $6.00–$6.35 after a second quarter in which adjusted diluted EPS rose 18.1% to $1.76, even as revenue continued to shrink.

The parent of advanced technology company Booz Allen Hamilton Inc. also lifted fiscal 2027 revenue guidance to $11.3 billion–$11.6 billion from $11.2 billion–$11.7 billion, and narrowed the implied growth band to 1.0%–3.0% from 0%–4.0%. Adjusted EBITDA guidance moved to $1,260 million–$1,290 million from $1,240 million–$1290 million, and free cash flow guidance to $850 million–$925 million from $825 million–$925 million. Adjusted EBITDA margin on revenue remains about 11%.

Revenue for the three months ended September 30, 2026 was $2.8 billion, down 3.9% from a year earlier. That decline was milder than the 4.2% drop in the prior quarter. Revenue excluding billable expenses was $2.0 billion, down 0.8%.

National Security revenue, which the company said includes Defense and Intelligence customers, was $2.08 billion, up from $2.06 billion a year earlier. Civil and Commercial revenue was $702 million, down from $827 million. The company said momentum continued across the National Security portfolio and that the Civil business was performing in line with expectations.

Adjusted net income was $211 million, up 15.3%. GAAP net income was $181 million, up 3.4%. Adjusted EBITDA was $313 million, down 3.4%. Adjusted EBITDA margin on revenue rose 10 basis points to 11.3%. Other corporate expenses of $17 million in the quarter consisted primarily of acquisition-related costs associated with the Ultra I&C Mission Solutions business.

Free cash flow was $263 million, compared with $395 million a year earlier. The company deployed $965 million of capital in the quarter. A regular quarterly dividend of $0.59 a share is payable December 4, 2026, to stockholders of record November 12, 2026.

Total backlog was $41 billion, up 1.9% from a year earlier. Funded backlog was $5.71 billion, unfunded backlog $10.41 billion, and priced options $24.81 billion. The quarterly book-to-bill ratio was 1.5x; the trailing twelve-month ratio was 1.1x.

Headcount was 31,000, down from 32,500 a year earlier. Customer staff headcount was 28,200. Contract mix was 59% cost-reimbursable, 21% time-and-materials, and 20% fixed-price.

Chairman and CEO Horacio Rozanski said the company was executing well and investing in its next phase of growth, and that it was building and scaling cyber and defense technology products. The company said it is accelerating investments and delivery of advanced cyber, agentic, and defense technologies.

Cash and cash equivalents were $334 million at September 30, 2026. Long-term debt, net of the current portion, was $4.39 billion. Net leverage was 3.3 times last-twelve-months adjusted EBITDA of $1.24 billion, versus 2.5 times a year earlier.