Booz Allen Hamilton reported lower quarterly revenue but stronger adjusted earnings and a larger backlog for its fiscal 2027 second quarter. The consulting and technology contractor released the results on October 23, 2026, for the three months ended September 30.

Key Insights

  • Revenue fell 3.9% year over year to $2.778 billion, while adjusted diluted earnings per share increased 18.1% to $1.76.
  • Total backlog rose 1.9% to $40.933 billion, and quarterly book-to-bill reached 1.5 times.
  • Booz Allen raised adjusted EPS guidance to $6.50–$6.70 and narrowed its revenue outlook to $11.3 billion–$11.6 billion.

Booz Allen Revenue Falls 3.9%

Revenue declined to $2.778 billion from the prior-year quarter, reflecting uneven demand across the government contracting market. Net income still increased 3.4% to $181 million, while adjusted net income rose 15.3% to $211 million.

Adjusted diluted EPS climbed to $1.76 from $1.49 a year earlier. Free cash flow was $263 million, down from $395 million, according to the company’s official earnings release.

Backlog Reaches $40.9 Billion

Total backlog ended the quarter at $40.933 billion, up 1.9% from a year earlier. A 1.5-times book-to-bill ratio indicates that quarterly contract bookings outpaced recognized revenue, providing a measure of future work even as current sales declined.

The backlog offers investors a clearer view of demand than one quarter’s revenue alone, though contract timing and federal spending decisions can affect conversion. That makes the result relevant alongside other government-facing technology developments, including OpenAI’s expanded frontier-model security work.

Fiscal 2027 EPS Outlook Increases

Booz Allen narrowed its full-year revenue forecast to a range of $11.3 billion to $11.6 billion. It also raised adjusted diluted EPS guidance to $6.50–$6.70 from an earlier range of $6.00–$6.35.

The higher earnings outlook suggests management expects margin and capital-allocation benefits to offset some revenue pressure. Investors tracking backlog-led industrial results can also compare Comfort Systems’ earnings and backlog and CRH’s completed Arcosa acquisition.

Sharron Kendi is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence.