Booz Allen Hamilton Q2 2027 earnings: profit beats, revenue dips, outlook raised
Booz Allen topped profit estimates on cost discipline and defense-segment strength even as revenue slipped on civil-agency weakness, and raised its full-year earnings outlook.
| Q2 2027 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $1.76 | $1.51 | +16.7% |
| Revenue | $2.78B | $2.84B | -2.1% |
Key takeaways
- Booz Allen’s profit per share beat Wall Street’s forecast, while revenue came in slightly below what analysts had expected and was lower than the same quarter last year — a mixed quarter where cost control outpaced sales.
- The revenue decline was driven by the firm’s civil business (consulting for non-defense federal agencies), where revenue fell about 15% as government civilian spending stayed under pressure; national security work, by contrast, kept growing, up roughly 6% on the measure management highlighted.
- Management raised its full-year profit guidance for the second time this year, now expecting adjusted earnings per share of $6.50–$6.70 for fiscal 2027, up from a prior $6.00–$6.35 range, even as it narrowed its full-year revenue forecast to $11.3–$11.6 billion.
- Total backlog — contracted work not yet booked as revenue — rose to about $41 billion, and the company booked $1.50 of new contract value for every $1 of revenue recognized this quarter, a sign that demand for future work remains solid even as current-quarter sales dipped.
- Booz Allen’s TTM operating margin (profit left after running the business, before interest and taxes) sits near 9.5%, and net margin near 7%, modest levels typical of government-services contractors; the margins reflect a business still working through softer civil-agency demand even as defense-related work helps offset it.
- Cash generated from the business was lower this quarter than a year ago — free cash flow of $263 million versus $395 million — partly tied to the timing of spending and investment, including the recently closed $729 million acquisition of Ultra I&C Mission Solutions, which adds capabilities in national-security technology.
- Looking at the trailing twelve months, both revenue and earnings per share are down from the prior year (roughly -7% and -32%, respectively), underscoring that the broader slowdown tied to federal civilian budget pressure has weighed on results over the past year even though this particular quarter beat estimates.
How the stock took it
Booz Allen Hamilton Holding Corporation closed at $78.57 on Oct 22, 2026, the last session before the report, and at $83.36 on Oct 26, 2026, the first session after it — +6.1% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 53.1% | Trailing 12 months |
| Operating margin | 9.5% | Trailing 12 months |
| Net profit margin | 7.0% | Trailing 12 months |
| Pretax margin | 8.1% | Trailing 12 months |
| EPS | $6.42 | Trailing 12 months |
| Revenue growth (YoY) | -7.3% | Trailing 12 months |
| EPS growth (YoY) | -32.4% | Trailing 12 months |
| Return on equity | 71.9% | Trailing 12 months |
Sources: company report · earnings call · reputable coverage