Booz Allen Hamilton is lifting full-year earnings outlook after profit beat

Adjusted diluted earnings for the quarter ended Sept. 30 came to $1.76 a share, up 18.1% from $1.49 a year earlier. Analysts expected $1.48 a share, according to The Wall Street Journal. Net income rose 3.4% to $181 million, or $1.50 a share.

Revenue fell 3.9% to $2.78 billion, the company said in a filing with the Securities and Exchange Commission. Analysts had expected $2.81 billion, according to The Wall Street Journal. Revenue excluding billable expenses slipped 0.8% to $1.96 billion. Free cash flow was $263 million, compared with $395 million a year earlier.

The company narrowed its fiscal 2027 revenue forecast to $11.3 billion to $11.6 billion, from $11.2 billion to $11.7 billion. It raised its adjusted EBITDA forecast to $1.26 billion to $1.29 billion, from $1.24 billion to $1.29 billion. Its free cash flow forecast is now $850 million to $925 million, up from $825 million to $925 million.

Booz Allen said its national security portfolio is gaining traction, while results in its civil unit are tracking what the company had projected. Total backlog stood at $41 billion, up 1.9% from a year earlier, and the quarterly book-to-bill ratio was 1.5x.

Chairman and CEO Horacio Rozanski said in a statement that the company is investing in its next phase of growth, including building and scaling cyber and defense technology products.

The board declared a regular quarterly dividend of $0.59 a share, payable Dec. 4 to stockholders of record on Nov. 12. The company will host a conference call at 8 a.m. ET on Friday to discuss the results.

Booz Allen stock rose 5% to $82.50 in premarket trading.

Federal contract spending has been reduced under the Trump administration, which has also pressed consulting firms such as Booz Allen to defend the value of their work, according to The Wall Street Journal. Total headcount was roughly 31,000, a 4.6% drop from the prior year, the Journal said.