What happened
Booz Allen Hamilton Holding Corporation (NYSE: BAH) reported second-quarter fiscal 2027 results on October 23, 2026. Revenue was $2.8 billion, down 3.9% year over year, while revenue ex-billables was $2.0 billion, down 0.8%. Net income rose 3.4% to $181 million, adjusted net income rose 15.3% to $211 million, and adjusted diluted EPS rose 18.1% to $1.76.
Adjusted EBITDA was $313 million, down 3.4%, while adjusted EBITDA margin on revenue rose 10 basis points to 11.3%. Free cash flow was $263 million, compared with $395 million in the prior year, and net cash from operating activities was $294 million versus $421 million. Total backlog was $41 billion, up 1.9%, and quarterly book-to-bill was 1.5x.
The company raised fiscal 2027 adjusted diluted EPS guidance to $6.50 to $6.70, from $6.00 to $6.35. Updated fiscal 2027 guidance calls for revenue of $11.3 billion to $11.6 billion, adjusted EBITDA of $1.26 billion to $1.29 billion, and free cash flow of $850 million to $925 million.
Key numbers
| Metric | Latest | Change | Source |
|---|---|---|---|
| Revenue | $2.78 billion | from $2.89 billion, -3.9% | SEC 8-K press release |
| Revenue ex-billables | $1.96 billion | from $1.97 billion, -0.8% | SEC 8-K press release |
| Adjusted diluted EPS | $1.76 | from $1.49, +18.1% | SEC 8-K press release |
| Total backlog | $40.93 billion | from $40.19 billion, +1.9% | SEC 8-K operating data |
| Free cash flow | $263 million | from $395 million, -33.4% | SEC 8-K press release |
Read more: Booz Allen Hamilton Holding (BAH) stock analysis and investment case
Why it matters
OptimistFi's case is that FY2026 was a procurement and mix reset rather than a structural loss of growth and pricing power. This filing is mixed. Revenue still fell 3.9%, but revenue ex-billables fell only 0.8%, a 3.1 percentage-point smaller decline.
That gap matters because billable expenses are lower margin, and the quarter still produced an 11.3% adjusted EBITDA margin and $263 million of free cash flow. Backlog rose to $41 billion and quarterly book-to-bill stayed at 1.5x, but the filing does not isolate how much of fiscal 2027 depends on acquisitions versus organic growth. Revenue still declined, and the release does not prove the raised guidance will convert into steadier top-line growth.
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What's next
Booz Allen said it will host a live conference call at 8 a.m. EDT on Friday, October 23, 2026, with a replay available beginning at 11 a.m. EDT. The company said the regular quarterly dividend of $0.59 per share will be payable on December 4, 2026, to stockholders of record on November 12, 2026.
A call that supports the raised $6.50 to $6.70 adjusted diluted EPS range would strengthen the case, while a weaker revenue update would soften it. The next quarterly report will show whether the backlog and guidance improvement are holding up.
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Sources
- SEC 8-K exhibit 99.1 press release — Second-quarter fiscal 2027 results, guidance update and dividend announcement.
- SEC 8-K current report — Current report dated October 23, 2026.
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
