Booz Allen Posts $2.8B in Q1 FY 2027 Revenue
Booz Allen Hamilton reported Q1 FY2027 revenue of $2.8 billion, down 4.2% year over year, with net income of $198 million and adjusted diluted EPS of $1.81. Backlog totaled $39 billion, up 3.2%. The company declared a $0.59 dividend and forecast FY2027 revenue of $11.2B to $11.7B and free cash flow of $825M to $925M.
How this was made
The 30-second read
Why it matters
Q1 results and explicit FY2027 guidance create a concrete re-rating framework for growth expectations, margin trajectory, and cash generation, with additional execution catalysts tied to pending acquisitions and cyber product expansion.
Market read
Traders can update models using the disclosed Q1 datapoints (revenue, net income, adjusted EPS, FCF, backlog) and the FY2027 revenue, EBITDA, EPS, and FCF ranges.
What to watch
The article highlights a pending Ultra I&C acquisition expected to close in Q2, which could shift segment mix and execution risk; traders may also weigh backlog quality and timing of revenue conversion, not just backlog level.
Background
Booz Allen is an IT and management consulting firm serving defense and federal customers, with stated strategic emphasis on cyber, defense technology, and autonomy.
Ticker impact
Booz Allen reported Q1 FY2027 revenue of $2.8B, net income $198M, and guided FY2027 revenue $11.2B to $11.7B.
Near-term bias likely depends on how the market interprets the revenue decline versus the improved adjusted EPS, EBITDA margin, and free-cash-flow rebound.
The article discloses multiple new datapoints: Q1 revenue decline, adjusted EPS up, free cash flow up sharply, backlog up, and explicit FY2027 ranges. However, it does not provide consensus comparisons or the stock’s immediate reaction, limiting precision on magnitude/direction.
Market effects
Signals continued demand and investment emphasis in federal cyber, defense tech, autonomy, and emerging compute (quantum/post-quantum), which can influence sentiment across government IT services.
Limited direct regional read-through beyond the federal contractor ecosystem in the DC/McLean area.
Low global macro relevance; primarily US defense and cyber spending narrative.
Counterpoint
Revenue is down YoY despite backlog growth, so the market may focus on top-line softness and question whether margin and cash flow improvements are sustainable.
Key entities
- public_companyBooz Allen Hamilton
Reported Q1 FY2027 revenue $2.8B, backlog $39B, and provided FY2027 guidance ranges.
- executiveHoracio Rozanski
CEO/Chairman cited priorities in cyber, defense tech, autonomy, and emerging technologies, including agentic AI and post-quantum cryptography.
- acquisition_targetUltra I&C Mission Solutions
Pending acquisition described as complementary to Booz Allen’s defense tech product line, expected to close in Q2.
- acquisitionDefy Security
April acquisition referenced as part of Booz Allen’s strategy to deliver technology-driven cybersecurity platforms.
