Booz Allen Hamilton Q2 FY2027: Big EPS Beat, Guidance Raised Despite Revenue Miss
As seen on the 24/7 Wall St. homepage on October 23, 2026.
Booz Allen raised full-year adjusted EPS guidance to $6.50 to $6.70 from $6.00 to $6.35, even with a revenue miss alongside it. Civil and Commercial revenue fell on slowed procurement, while National Security held near flat and backlog grew.
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Management lifted full-year adjusted EPS guidance to $6.50 to $6.70 from the prior range of $6.00 to $6.35 after adjusted diluted EPS of $1.76 came in ahead of expectations for the fiscal second quarter of 2027.
Revenue of $2.78 billion missed expectations for the quarter, with the Civil and Commercial segment bearing the brunt as a prolonged procurement slowdown delayed program starts across that part of the business.
National Security held broadly steady and cushioned the overall decline, while backlog grew to $40.93 billion with a book-to-bill ratio of 1.5x, a signal that contract awards are running well ahead of recognized revenue. That pipeline, combined with the raised EPS guidance, is why the profit story is dominating the revenue shortfall in investor attention.
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Booz Allen deployed $795 million in acquisitions and strategic investments during the quarter, including the Ultra I&C Mission Solutions business, even as net leverage rose to 3.3x from 2.5x. The quarter also included a $10 million earnout gain tied to contracts divested in the fourth quarter of fiscal 2026.
Free cash flow of $263 million declined 33% year-over-year, tracking the lower revenue volume, while the company kept returning capital through buybacks and a declared quarterly dividend. Headcount fell to roughly 31,000 from 32,500, a reduction that partly explains how profitability held up despite softer top-line results.
Mentioned: BAH