Booz Allen (BAH) Q2 2027 Earnings Report
MX:BAH Q2 2027 EPS Results
- Actual EPS
- MXN 33.23
- Consensus EPS
- MXN 27.93
- Beat/Miss
- Beat by +MXN 5.31
- One Year Ago EPS
- MXN 28.13
MX:BAH Q2 2027 Revenue Results
- Actual Revenue
- MXN 52.45B
- Expected Revenue
- MXN 53.05B
- Beat/Miss
- Missed by -MXN 596.75M
- YoY Revenue Growth
- -3.88%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 10/23/2026
- Time
- Before Open
- Conference Call
- Friday, October 23, 2026
MX:BAH Upcoming Earnings
Booz Allen's next earnings date is estimated for January 22, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
MX:BAH Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. Management reported strong adjusted EBITDA performance, 18% adjusted EPS growth, robust free cash flow, healthy bookings and backlog, strong national security demand, and continued momentum in cyber, defense tech, and outcome-based contracting. These positives outweighed the 3.9% overall revenue decline, the 15% civil revenue decline, delayed civil awards, federal funding uncertainty, elevated DSO, and expected second-half margin pressure.
Company Guidance
For fiscal year 27, Booz Allen now expects revenue between $11.3 billion and $11.6 billion, implying growth of 1% to 3%, with national security delivering mid single digit growth for the full year and growth expected to accelerate in the second half; civil revenue is expected to be flat to slightly down sequentially for the third and fourth quarter, implying a low double digit decline for the year, slightly softer than initial expectations. Adjusted EBITDA guidance is now $1.26 billion to $1.29 billion, with a step down in margins in the second half, adjusted EPS guidance is $6.50 to $6.70, and free cash flow is expected between $850 million and $925 million. Ultra is expected to have margins well above 20%, while Booz Allen would like to see its defense tech business grow double digits and expects to return to mid single digit growth year over year with even better bottom line growth.
- Strong Profitability and Cash GenerationManagement said the company delivered strong profitability and cash generation while continuing to invest for the future. Second-quarter adjusted EBITDA was $313 million, with an 11.3% margin, up 10 basis points year over year. Free cash flow was $263 million, driven by continued strong collections.
- Adjusted EPS Growth and Raised GuidanceSecond-quarter adjusted diluted EPS increased 18% year over year to $1.76, driven by profit growth, a reduced share count, a lower tax rate, and a $10 million DARPA divestiture earn-out. Fiscal year 27 adjusted EPS guidance was raised meaningfully to $6.50 to $6.70.
- National Security Growth and DemandNational security revenue grew 1% year over year in the second quarter, or 6% excluding the impact of lower billable expenses. Management expects national security growth to accelerate in the second half and projects mid single digit growth for the full year.
- National Security Backlog and Pipeline StrengthNational security funded backlog increased 10% year over year, total funded backlog increased 5% to $5.7 billion, and the qualified national security pipeline increased more than 20% year over year. Management cited significant funded backlog and strong demand signals across the portfolio.
- Healthy Bookings and BacklogSecond-quarter book-to-bill was 1.5x, benefiting from a large classified award. Trailing 12-month book-to-bill was 1.1x, and total backlog was nearly $41 billion, up 2% year over year.
- Cybersecurity Product DevelopmentBooz Allen is accelerating its cyber products and solutions, including the Velox Agentic Cyber product suite, while serving all 16 critical infrastructure sectors, dozens of Fortune 500 companies, and numerous federal customers. The Guile counter-SI product reduced attack success rates by more than 95% in testing at scale and entered private beta with government and commercial customers.
- Growing Zero Trust and Cyber OpportunityManagement said its Zero Trust work is growing significantly because of customer need and that the company has productized portions of the offering for a broader range of customers. The cyber business is described as transforming into a technology-first and solutions-first business that is already growing significantly at both the top and bottom lines.
- Ultra I&C Mission Solutions AcquisitionThe company acquired Ultra I&C Mission Solutions in August for $729 million, inclusive of certain adjustments. Ultra adds commercially proven, software-centric, hardware-enabled defense tech products, an established operational customer base, and capabilities complementary to Booz Allen's defense tech, autonomy, encryption, and cyber offerings.
- Defense Tech Growth ProspectsManagement said Ultra continues to show strong top-line growth and margins well above 20%. Booz Allen expects its overall defense tech business to grow double digits and said Ultra strengthens its C3BM portfolio, autonomy capabilities, and encryption-related opportunities.
- Progress Toward Outcome-Based ContractingThe national security firm-fixed-price contract mix increased by 3 percentage points year to date. Management said the proportion of fixed-price and outcome-based contracts is expected to continue growing, creating opportunities to deliver more value, productize intellectual property, and improve profitability over time.
- Margin Expansion StrategyManagement expects profit to grow faster than revenue and margins to expand over the next couple of years. Executives said the company is growing margins while also increasing investment in the business, including investments in Velox and other growth initiatives.
- Civil Demand and Recovery PipelineAlthough civil revenue declined, management said demand remains strong for Agentic software development and SI-ready data platforms across financial integrity, public safety infrastructure, and healthcare missions. The company expects the civil year-over-year decline to moderate in the second half as new work ramps up and additional awards are received.
- Hiring in National SecurityThe company added more than 300 employees in national security during the quarter and is continuing to hire while rapidly building its technology capabilities. Management also said it expects to decouple growth from headcount over time.
- Strong Balance Sheet and LiquidityBooz Allen ended the quarter with $334 million of cash and total liquidity of $1.8 billion. Management said strong cash flow and collections provide flexibility for business investment and opportunistic capital deployment.
- Balanced Capital DeploymentSecond-quarter capital deployment totaled $965 million, consisting of $729 million for the Ultra acquisition, $66 million for strategic venture investments, and $170 million in dividends and share repurchases. Management said it will maintain a balanced approach, including continued dividends, modest share repurchases, deleveraging during Ultra integration, and selective strategic investments.
- Raised Free Cash Flow GuidanceFiscal year 27 free cash flow guidance is now $850 million to $925 million, reflecting strong year-to-date collections and a slightly lowered CapEx assumption, partly offset by incremental costs and interest expense associated with the Ultra acquisition.
- Transformation and Long-Term Growth FocusManagement is investing in cyber, defense tech, artificial and superintelligence, Agentic capabilities, physical SI, quantum, and 6G. Executives described a gradual transition toward technology-enabled growth, margin expansion, and reduced dependence on the historical headcount-driven growth algorithm.
MX:BAH Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 22, 2027 | 2027 (Q3) | 27.83- | 33.42 | ― | ― |
| Oct 23, 2026 | 2027 (Q2) | 27.9333.23 | 28.13 | 18.12% (+5.10) | |
| Jul 24, 2026 | 2027 (Q1) | 28.0234.18 | 27.95 | 22.30% (+6.23) | |
| May 22, 2026 | 2026 (Q4) | 25.2533.61 | 30.4 | 10.56% (+3.21) | |
| Jan 23, 2026 | 2026 (Q3) | 25.7633.42 | 29.27 | 14.19% (+4.15) | |
| Oct 24, 2025 | 2026 (Q2) | 28.5528.13 | 34.18 | -17.68% (-6.04) | |
| Jul 25, 2025 | 2026 (Q1) | 27.3827.95 | 26.06 | 7.25% (+1.89) | |
| May 23, 2025 | 2025 (Q4) | 30.4830.40 | 25.11 | 21.05% (+5.29) | |
| Jan 31, 2025 | 2025 (Q3) | 28.6629.27 | 26.62 | 9.93% (+2.64) | |
| Oct 25, 2024 | 2025 (Q2) | 27.8534.18 | 24.36 | 40.31% (+9.82) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed