Booz Allen Q2 FY27 slides: EPS jumps 18% despite revenue decline

Booz Allen Hamilton reported its second-quarter fiscal year 2027 results on October 23, 2026. The government contractor revealed a decline in revenue, down 3.9% to $2,778 million from $2,890 million. However, the company demonstrated strong profitability gains, with adjusted diluted EPS of $1.76, an 18.1% increase from $1.49 in the same period last year.

The company's shares opened at $79 in pre-market activity, up 0.55% from the previous close of $78.57. Despite the revenue decline, Booz Allen highlighted bifurcated market dynamics, with national security revenue excluding billable expenses growing 5.9%. Chairman and CEO Horacio Rozanski emphasized the company's execution strength and investment in growth areas, including cyber and defense technology products and super intelligence for critical missions.

The company's backlog reached $41 billion, up 2% year-over-year, while funded backlog increased 5%. Management outlined a balanced capital allocation strategy, investing $795 million in mergers and acquisitions, primarily in the Ultra I&C Mission Solutions acquisition. The company projected revenue between $11.3 billion and $11.6 billion for fiscal 2027, with modest top-line growth but stronger profitability metrics.