The strong EPS beat and robust FCF generation confirm operational efficiency, but persistent revenue shrinkage (especially in Civil) keeps the outlook uncertain. Maintained guidance suggests the company expects stability, not acceleration. Watch for bookings growth in National Security to offset Civil declines, and monitor next quarter's revenue trajectory for signs of stabilization.
Price Chart
Executive Summary
Booz Allen reported Q1 FY27 revenue of $2.8B (-4.2% YoY), but adjusted diluted EPS of $1.81 beat consensus by 21.3% ($1.49). Adjusted EBITDA rose 7.4% to $334M with margin expansion of 130bps to 11.9%, and free cash flow surged 171.9% to $261M. FY27 guidance was maintained, signaling stable profitability despite sustained top-line headwinds in the Civil segment.
Key Financial Metrics
Key Facts
- Revenue $2.8B, down 4.2% YoY (Q1 FY27)
- Adjusted Diluted EPS $1.81 vs consensus $1.49 (+21.3% beat)
- GAAP Diluted EPS $1.63, down 24.5% YoY due to higher tax and interest
- Adjusted EBITDA $334M, +7.4% YoY; margin 11.9% (+130bps)
- Free Cash Flow $261M, up 171.9% YoY
- Q1 backlog $39B, quarterly book-to-bill 1.5x, funded backlog +15% YoY
- FY27 guidance maintained: revenue $11.2-11.7B, adj EBITDA $1.24-1.29B, adj EPS $6.00-6.35
- $447M total capital deployment in Q1 including M&A and buybacks
- National Security revenue grew 1.3% to $2.0B; Civil revenue declined 16.4% to $772M
- Net leverage ratio 2.7x, $2.0B liquidity
Financial Impact
Adjusted EPS beat by $0.32 (21.3%) vs consensus, cash flow improved by $165M YoY, but revenue declined $124M YoY
Risk Factors
- Civil revenue continues to decline sharply (-16.4% YoY); further government procurement slowdown could worsen
- GAAP net income fell 26.9% due to higher tax and interest expense; this may spook GAAP-focused investors
- Net leverage of 2.7x is elevated; significant M&A spend ($220M) in Q1 may pressure balance sheet
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-049494 |
| Document: bah-20260724.htm | 0001628280-26-049494 |
| Document: q1fy2027exhibit992_final.htm | 0001628280-26-049494 |
| Document: 0001628280-26-049494-index-headers.html | 0001628280-26-049494 |
| Document: 0001628280-26-049494-index.html | 0001628280-26-049494 |
| Document: 0001628280-26-049494.txt | 0001628280-26-049494 |
| 8-K Data (Synthetic) | 0001628280-26-049494 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 2, 2026 4w ago | GOVT-CONTRACT | $73.17 $69.42 | ▼ −5.13% | ▼ −4.79% | $67.29 (−8.04%) |
Aug 24, 2026 5w ago | 8-K | $75.22 $76.28 | ▲ +1.41% | ▲ +0.10% | $67.29 (−10.55%) |
Aug 19, 2026 6w ago | GOVT-CONTRACT | $78.84 $78.89 | ▲ +0.06% | ▲ +2.02% | $67.29 (−14.66%) |
Jul 24, 2026 10w ago | 8-K | $72.53 $77.05 | ▲ +6.23% | ▲ +2.61% | $67.29 (−7.23%) |
Jul 24, 2026 10w ago | GOVT-CONTRACT | $72.53 $77.05 | ▲ +6.23% | ▲ +2.61% | $67.29 (−7.23%) |
Jun 22, 2026 14w ago | 8-K | $63.33 $65.21 | ▲ +2.97% | ▲ +3.12% | $67.29 (+6.25%) |
Jun 11, 2026 16w ago | DEFA14A | $77.41 $62.76 | ▼ −18.93% | ▼ −20.70% | $67.29 (−13.08%) |
May 22, 2026 19w ago | 8-K | $78.66 $63.33 | ▲ +19.49% | ▲ +19.32% | $67.29 (+14.46%) |
Apr 17, 2026 24w ago | GOVT-CONTRACT | $81.48 $73.38 | ▼ −9.94% | ▼ −15.31% | $67.29 (−17.42%) |
May 1, 2024 29mo ago | GOVT-CONTRACT | $147.34 $151.64 | ▲ +2.92% | ▼ −1.56% | $67.29 (−54.33%) |
US Market Status
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