Booz Allen Q1 FY27: Revenue slips 4.2% but profitability surges; guidance maintained
BAH is trading near its 52-week low of $59.5 (13% above the low).
Summary
Booz Allen reported Q1 FY27 revenue down 4.2% to $2.8B, but Adjusted EBITDA up 7.4% to $334M and Adjusted Diluted EPS up 22.3% to $1.81. Full-year guidance was maintained.
Key Events · Earnings and Guidance · BAH
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Revenue Down 4.2%
Q1 FY27 revenue of $2.8 billion declined 4.2% year-over-year, driven by slowed procurement and reduced headcount. Revenue excluding billable expenses fell 3.8% to $1.97 billion.
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Profitability Jumps
Adjusted EBITDA rose 7.4% to $334 million, with margin expanding 130 bps to 11.9%. Adjusted Net Income increased 17.9% to $217 million, and Adjusted Diluted EPS grew 22.3% to $1.81.
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Free Cash Flow Surges
Free cash flow reached $261 million, up 171.9% from $96 million a year ago, driven by strong working capital management and lower tax payments.
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Backlog and Book-to-Bill Solid
Total backlog grew 3.2% to $39 billion, with funded backlog up 15%. The quarterly book-to-bill ratio was 1.5x, indicating strong demand in National Security.
Analysis · BAH · Trade & Services
Booz Allen's first-quarter results tell a story of two trends: top-line pressure from a slow government procurement environment, but sharply higher profitability and cash flow. Revenue fell 4.2% to $2.8 billion, yet Adjusted EBITDA rose 7.4% to $334 million and Adjusted Diluted EPS jumped 22.3% to $1.81. Free cash flow more than doubled to $261 million. The company maintained its full-year guidance, signaling confidence that the margin improvements are sustainable. A 1.5x book-to-bill and $39 billion backlog provide visibility, though the Civil segment remains a drag. The results land against a backdrop of recent executive changes and the pending $720 million Ultra I&C acquisition, which will reshape the portfolio.
At the time of this filing, BAH was trading at $67.47 on NYSE in the Trade & Services sector, with a market capitalization of approximately $7.9B. The 52-week trading range was $59.50 to $120.05. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.