- Booz Allen reported $2.1 billion in Q2 national security revenue
- CEO Horacio Rozanski cites over 95 percent attack reduction from Guile tool
- The 2027 Defense R&D Summit will explore AI and autonomy, quantum and more
Booz Allen Hamilton reported $2.8 billion in revenue for the second quarter of fiscal year 2027, down 3.9 percent from the prior-year period, along with a total backlog of $41 billion.
Booz Allen continues to invest in cyber and defense technology products to support national security missions. Government and industry leaders will gather at the Potomac Officers Club’s 2027 Defense R&D Summit on Feb. 4 to discuss unmanned systems, 5G and future-generation wireless capabilities, artificial intelligence and autonomy, quantum computing and more. Register now for this Booz Allen-backed event to join the conversation about technologies shaping the future of warfare.
The McLean, Virginia-based company said Friday its backlog grew 1.9 percent year over year, while its quarterly book-to-bill ratio stood at 1.5x.
“Booz Allen is executing exceptionally well and investing in our next phase of growth,” said Horacio Rozanski, chairman and CEO of Booz Allen. “We are building and scaling our cyber and defense tech products and bringing super intelligence into our nation’s most critical missions to deliver greater value and impact.”
What Other Financial Results Did Booz Allen Report for Q2?
Booz Allen posted net income of $181 million, up 3.4 percent, and adjusted net income of $211 million, a 15.3 percent increase. Revenue excluding billable expenses totaled $2 billion, down 0.8 percent.
Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, decreased 3.4 percent to $313 million. The adjusted EBITDA margin on revenue increased by 10 basis points to 11.3 percent.
Adjusted diluted earnings per share grew 18.1 percent to $1.76. The company generated $263 million in free cash flow, compared with $395 million a year earlier, and deployed $965 million in capital during the period.
By customer type, national security revenue reached $2.1 billion, while civil and commercial revenue totaled $702 million.
The company declared a quarterly dividend of $0.59 per share, payable Dec. 4 to stockholders of record as of Nov. 12.
What Did Rozanski Say About Booz Allen’s Cyber & Defense Tech Efforts?
In an earnings call Friday, Rozanski, a three-time Wash100 awardee, told analysts that agentic AI allows adversaries to carry out autonomous attacks with a speed and persistence that legacy defenses were not built to stop, driving demand for advanced cyber solutions across government and commercial markets.
“Artificial and now super intelligence, or SI for short, is powering more sophisticated cyber threats,” the Booz Allen chief said.
His remarks come weeks after President Donald Trump signed an executive order directing federal agencies to use the term super intelligence in place of artificial intelligence across the executive branch.
Rozanski added that the company’s cyber work covers cyber operations, zero trust, incident response and AI-enabled defense, and supports all 16 critical infrastructure sectors. He pointed to the Velox Agentic Cyber product suite, which pairs Booz Allen’s cyber tradecraft with its proprietary technology to help customers counter threats at machine speed.
One product in the suite, Guile, is built to defeat AI-enabled attacks in real time. According to Rozanski, the tool lowered the success rate of attacks by more than 95 percent during large-scale testing and is now in private beta with government and commercial users.
On defense tech, Rozanski explained that warfighters need mission-proven products capable of turning large volumes of sensor and system data into actionable information at the tactical edge. To speed up product development and deployment, Booz Allen completed its acquisition of Ultra I&C Mission Solutions in August. He said Ultra contributes software-centric, hardware-enabled products that complement Booz Allen’s own offerings, as well as a customer base already using those technologies in operational missions.
The Booz Allen chairman added that the two areas support each other: the company’s cyber expertise strengthens the security of its defense tech products, while its defense tech portfolio opens new opportunities for cyber products at the edge.
In April, Booz Allen completed its acquisition of Defy Security as part of its effort to offer technology-based cybersecurity platforms to federal and commercial customers.
What Is Booz Allen’s Updated Outlook for FY 2027?
Booz Allen now expects fiscal 2027 revenue between $11.3 billion and $11.6 billion, implying growth of 1 to 3 percent, compared with its earlier range of $11.2 billion to $11.7 billion.
The company raised the low end of its adjusted EBITDA forecast to $1.26 billion, with the high end unchanged at $1.29 billion, and continues to project an adjusted EBITDA margin on revenue of about 11 percent.
Booz Allen increased its adjusted diluted EPS projection to $6.50 to $6.70, up from $6.00 to $6.35, and anticipates free cash flow of $850 million to $925 million.
