Booz Allen Q1 revenue slips 4.2% but margins expand; $720M Ultra deal on deck
BAH is trading near its 52-week low of $59.5 (14% above the low).
Summary
Booz Allen's Q1 FY27 revenue fell 4.2% to $2.8B, but margins improved and Adjusted EBITDA rose 7.4%. The company closed the Defy Security acquisition and announced a $720M deal for Ultra Mission Solutions. Initial FY27 EPS guidance of $6.00-$6.35 missed consensus.
Key Events · Earnings and Guidance · BAH
-
Revenue Down, Margins Up
Q1 FY27 revenue of $2.8B fell 4.2% YoY, but operating margin improved to 10% from 9%, and Adjusted EBITDA rose 7.4% to $334M.
-
Net Income Drops on Tax Normalization
Net income fell 27% to $198M, driven by a prior-year $86M tax benefit that didn't recur; diluted EPS was $1.63 vs $2.16.
-
Acquisition Activity Accelerates
Closed $235M Defy Security acquisition in April; announced $720M deal for Ultra I&C Mission Solutions, expected to close in Q2 FY27.
-
Balance Sheet and Liquidity
Cash declined to $540M from $728M at March 31, 2026, after funding acquisitions and investments; $1.5B revolver remains undrawn.
Analysis · BAH · Trade & Services
Booz Allen's Q1 FY27 results show a 4.2% revenue decline to $2.8B, continuing the slowdown seen in FY26, but operating margin expanded to 10% and Adjusted EBITDA rose 7.4% to $334M. Net income fell 27% to $198M, largely because a prior-year tax benefit did not repeat. The balance sheet remains solid with $540M in cash and $1.5B in undrawn revolver capacity, though cash declined $188M in the quarter after funding the $235M Defy Security acquisition and $88M in strategic investments. The pending $720M Ultra Mission Solutions acquisition, expected to close in Q2 FY27, will further reshape the business. Backlog grew 3% to $39.5B, providing revenue visibility. The initial FY27 adjusted EPS guidance of $6.00-$6.35, issued concurrently in an 8-K, came in below the $6.50 consensus, which may weigh on the stock.
How filings like this one have moved
In the 30 days to Oct 5, 2026, 29.2% of the 1496 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.63%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, BAH was trading at $67.54 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.