- Booz Allen has posted $2.8 billion in Q1 FY 2027 revenue
- Booz Allen CEO Horacio Rozanski says the company is building and scaling tech to deliver battlefield advantage
- Attend the Potomac Officers Club’s DOW summits this summer
Booz Allen Hamilton reported $2.8 billion in revenue, a 4.2 percent year-over-year decline, and a total backlog of $39 billion for the first quarter of fiscal year 2027.
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In an earnings release published Friday, the McLean, Virginia-based IT and management consulting firm said the backlog represented a 3.2 percent year-over-year increase.
“Booz Allen is on track with the expectations we set for the fiscal year amid challenging market dynamics,” said Booz Allen Chairman and CEO Horacio Rozanski. “We are executing the business well, investing in cyber and defense technologies to accelerate our growth, and transforming at speed.”
What Else Did Booz Allen Report for Q1 FY 2027?
The company posted net income of $198 million, a 26.9 percent decrease, and adjusted net income of $217 million, a 17.9 percent increase. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 7.4 percent to $334 million, and the adjusted EBITDA margin on revenue increased by 130 basis points to 11.9 percent.
Adjusted diluted earnings per share climbed 22.3 percent to $1.81. Free cash flow reached $261 million, compared with $96 million in the prior-year period.
Booz Allen deployed $447 million in total capital during the quarter and recorded a quarterly book-to-bill ratio of 1.5x.
The company also declared a regular quarterly dividend of $0.59 per share, payable on Aug. 28, to stockholders of record as of Aug. 14.
What Did Rozanski Say About Booz Allen’s Growth Priorities?
In an earnings call on Friday, Rozanski, a three-time Wash100 awardee, said the company’s priorities include accelerating its cyber and defense technology growth vectors; advancing investments in autonomy, physical artificial intelligence, quantum, 6G and AI radio access network; and maximizing the value of its partnerships and venture investments. He told analysts that the company continues to make strong progress across these priorities.
On cyber, the Booz Allen chairman said agentic AI has changed the threat environment, with offensive tools becoming more autonomous, persistent and dangerous. He said Booz Allen continues to expand Vellox, its suite of agentic cyber products that combines the company’s tradecraft and AI expertise, and that customer engagement remains high.
This push builds on Booz Allen’s April acquisition of Defy Security, which the company finalized as part of its broader strategy to deliver technology-driven cybersecurity platforms across federal and commercial markets.
On defense technology, said Rozanski, the company is building, scaling and operationalizing technologies for the warfighting mission, spanning soldier-worn tech, battle management systems, autonomy and resilient communications. He pointed to the company’s pending acquisition of Ultra I&C Mission Solutions as central to expanding its defense tech product line. Ultra Mission Solutions brings a portfolio spanning command and control software, ruggedized edge compute and encryption management, which he said is complementary to Booz Allen’s existing products. The Booz Allen chairman said the company expects to close the transaction in the second quarter.
How Is Booz Allen Approaching Quantum & Other Emerging Technologies?
Rozanski said Booz Allen is also investing in areas where emerging technologies and mission requirements are converging, citing quantum computing as an example of a decade-long investment area. The Booz Allen chief executive pointed to post-quantum cryptography as a focus, noting that recent executive orders and Office of Management and Budget guidance are accelerating the timeline for agencies to assess exposure and prepare for migration.
He said Booz Allen has been working with early government and industry adopters on the transition and is prepared to scale as demand increases.
What Is Booz Allen’s Outlook for Fiscal Year 2027?
For fiscal year 2027, Booz Allen expects revenue of $11.2 billion to $11.7 billion, reflecting growth of 0 to 4 percent. The company projects adjusted EBITDA of $1.24 billion to $1.29 billion, with an adjusted EBITDA margin on revenue of about 11 percent.
Adjusted diluted EPS is expected to range from $6.00 to $6.35, and free cash flow is projected between $825 million and $925 million.
