The strong EPS beat and raised guidance signal accelerating profitability and operational leverage, likely driving positive momentum. However, the persistent revenue decline and elevated leverage from M&A spending warrant monitoring of Civil segment recovery and debt paydown trajectory. The raised EPS guidance implies confidence in margin expansion even with modest top-line growth.
Price Chart
Executive Summary
Booz Allen Hamilton reported Q2 FY27 results with Adjusted Diluted EPS of $1.76, an 18.1% YoY increase and a 19.0% beat vs consensus of $1.48, driven by strong operational execution and margin expansion. Revenue declined 3.9% YoY to $2.78B, slightly below consensus of $2.81B, reflecting continued bifurcation with National Security accelerating (revenue ex-billables up 5.9%) while Civil remains challenged. The company raised its FY27 Adjusted Diluted EPS guidance to $6.50-$6.70 from $6.00-$6.35, signaling confidence in profitability despite the top-line headwinds.
Key Financial Metrics
Key Facts
- Adjusted Diluted EPS of $1.76 beat consensus of $1.48 by 19.0% and grew 18.1% YoY
- Revenue of $2.78B declined 3.9% YoY, slightly below consensus of $2.81B
- National Security revenue ex-billables grew 5.9% YoY; Civil and Commercial revenue declined 15.1%
- FY27 Adjusted Diluted EPS guidance raised to $6.50-$6.70 from $6.00-$6.35
- FY27 revenue guidance narrowed to $11.3B-$11.6B (1-3% growth) from $11.2B-$11.7B (0-4% growth)
- Adjusted EBITDA margin improved 10 bps YoY to 11.3%
- Total backlog grew 1.9% YoY to $41B; quarterly book-to-bill ratio of 1.5x
- Free cash flow of $263M, down 33.4% YoY due to higher capex and working capital
- Net leverage ratio increased to 3.3x from 2.5x a year ago, driven by M&A spending
- Quarterly dividend maintained at $0.59 per share
Financial Impact
Adjusted Diluted EPS beat consensus by $0.28 (19.0%), with guidance raised by $0.35-$0.50 at the midpoint
Risk Factors
- Revenue continues to decline YoY (-3.9%), driven by Civil and Commercial segment weakness (-15.1%)
- Net leverage ratio increased to 3.3x from 2.5x due to $795M in M&A and strategic investments in Q2
- Free cash flow declined 33.4% YoY to $263M, partly due to higher capex for new headquarters
- Civil segment headwinds may persist if federal procurement environment remains slow
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-066971 |
| Document: bah-20261023.htm | 0001628280-26-066971 |
| Document: q2fy27bahexhibit992.htm | 0001628280-26-066971 |
| Document: 0001628280-26-066971-index-headers.html | 0001628280-26-066971 |
| Document: 0001628280-26-066971-index.html | 0001628280-26-066971 |
| Document: 0001628280-26-066971.txt | 0001628280-26-066971 |
| 8-K Data (Synthetic) | 0001628280-26-066971 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 2d ago | Institutional Cluster | $77.57 | awaiting T+20 | — | $78.32 (+0.97%) |
Oct 23, 2026 3d ago | 8-K | $82.54 | awaiting T+20 | — | $78.32 (−5.11%) |
Sep 24, 2026 4w ago | GOVT-CONTRACT | $72.95 $78.32 | ▲ +7.36% | ▲ +8.84% | $78.32 (+7.36%) |
Sep 15, 2026 5w ago | GOVT-CONTRACT | $78.02 $71.87 | ▼ −7.88% | ▼ −9.94% | $78.32 (+0.39%) |
Sep 2, 2026 7w ago | GOVT-CONTRACT | $73.88 $67.35 | ▼ −8.84% | ▼ −8.38% | $78.32 (+6.01%) |
Aug 24, 2026 8w ago | 8-K | $75.22 $76.28 | ▲ +1.41% | ▲ +0.10% | $78.32 (+4.12%) |
Aug 24, 2026 9w ago | GOVT-CONTRACT | $73.83 $75.65 | ▲ +2.47% | ▲ +1.97% | $78.32 (+6.08%) |
Aug 19, 2026 9w ago | GOVT-CONTRACT | $76.36 $77.07 | ▲ +0.93% | ▲ +1.05% | $78.32 (+2.57%) |
Jul 29, 2026 12w ago | GOVT-CONTRACT | $67.80 $74.88 | ▲ +10.45% | ▲ +6.48% | $78.32 (+15.52%) |
Jul 24, 2026 13w ago | 8-K | $72.53 $77.05 | ▲ +6.23% | ▲ +2.61% | $78.32 (+7.98%) |
US Market Status
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