Booz Allen 10-Q: Revenue Down 3.9% to $2.8B, EPS Up 18.1%, Net Leverage 3.3x
BAH sits 38% above its 52-week low of $59.5.
Summary
Booz Allen's Q2 FY27 10-Q confirms a 3.9% revenue decline to $2.8 billion offset by 18.1% adjusted EPS growth to $1.76. Net leverage rose to 3.3x after the Defy and Ultra acquisitions, and RPO climbed to $11.8 billion.
Key Events · Earnings and Guidance · BAH
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Revenue Falls 3.9%, EPS Jumps 18.1%
Q2 revenue came in at $2,778 million versus $2,890 million a year earlier, while adjusted diluted EPS rose to $1.76 and FY27 EPS guidance was lifted to $6.50-$6.70.
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Net Leverage Climbs to 3.3x
Net debt of $4,076 million ($4,410 million total debt less $334 million cash) against $1,241 million of adjusted EBITDA puts leverage at 3.3x, up from 2.5x after the acquisitions.
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Backlog and RPO Grow
Remaining performance obligations rose to $11.8 billion from $10.7 billion at March 31, 2026, and total backlog increased 2% to $40,933 million.
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Buybacks Slow, Dividend Maintained
The company repurchased 1.3 million shares for $99 million in the quarter versus $207 million a year ago, leaving $535 million under the program; a $0.59 quarterly dividend was declared October 23, 2026, payable December 4, 2026.
Analysis · BAH · Trade & Services
The full quarterly report behind this morning's earnings release confirms the split picture: the top line is still shrinking as civil programs start slowly, but margins and tax planning pushed adjusted EPS up 18.1% to $1.76, and management raised FY27 EPS guidance to $6.50-$6.70. What the 8-K did not show is the balance-sheet cost of the acquisition spree. Net debt of $4,076 million against $334 million of cash puts net leverage at 3.3x, up from 2.5x, even after the $1.2 billion bond deal that retired Term Loan A-1. Offsetting that, remaining performance obligations grew to $11.8 billion from $10.7 billion and total backlog rose 2% to $40.9 billion, so the demand pipeline is not deteriorating. Buybacks slowed sharply to $99 million in the quarter versus $207 million a year ago, leaving $535 million on the program, while the $0.59 dividend continues.
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At the time of this filing, BAH was trading at $82.06 on NYSE in the Trade & Services sector, with a market capitalization of approximately $9.5B. The 52-week trading range was $59.50 to $109.10. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.