EPS Beat, Strong Backlog
Booz Allen Hamilton Reports Q1 EPS Beat; $39 Billion Backlog Fuels Future Growth
Anonymous
Key Points
1
Insider and institutional trading activity around Booz Allen after the quarterly results included Charles Schwab Investment Management buying 2,755,464 Booz Allen shares (+321.9%) and First Trust Advisors LP selling 2,191,990 shares (−45.1%), among other notable moves (Morgan Stanley −1,685,674; Price T Rowe Associates +1,415,740; Bessemer Group −1,160,249; AQR Capital Management −1,046,971).
2
Booz Allen posted an adjusted EPS of $1.81, beating consensus by about 21% (roughly $0.30 above estimates).
3
Revenue declined about 4.2% year over year to $2.8 billion, a slightly larger drop than some headline summaries, contributing to near-term softness despite solid backlog.
4
The quarterly dividend remains $0.59 per share, with the payment date set for August 28, 2026 and the record date August 14, 2026.
5
CEO Horacio Rozanski reiterated that Booz Allen is on track with its fiscal-year expectations, emphasizing investments in cyber and defense technologies to accelerate growth and transformation at pace.
Booz Allen Hamilton posted adjusted earnings of $1.81 per share in Q1 2027, beating Wall Street estimates by about $0.30 — a roughly 21% beat — according to Quiver Quant. Revenue came in at $2.8 billion, down 4.2% from a year ago, as softness in the Civil segment weighed on the top line.
Despite the revenue miss, the company's backlog hit $39 billion with a book-to-bill ratio of 1.5x, signaling strong future demand. CEO Horacio Rozanski said the firm is "on track" with its fiscal-year outlook, pointing to growth in cyber and defense technologies as key drivers.
EPS Beats Big But Revenue Falls Short
Booz Allen's adjusted net income rose 17.9% to $217 million, even as net income dropped 26.9% to $198 million, according to TipRanks. The gap reflects one-time items and non-GAAP adjustments the company uses to show underlying performance. Adjusted EBITDA margin on revenue rose to 11.9%, showing disciplined cost control.
Free cash flow reached $261 million in the quarter. Revenue of $2.8 billion compared to $2.924 billion a year ago, a drop of about $124 million, according to MarketScreener. The Civil segment was the main drag. National Security, cyber, and AI-enabled work continued to grow.
$39 Billion Backlog Points to Durable Demand
Booz Allen's $39 billion backlog is one of the clearest signs that near-term revenue pressure may not last. A book-to-bill ratio of 1.5x means the company won $1.50 in new contracts for every $1.00 of revenue it recorded. That is a healthy pace of contract wins by any standard.
CEO Rozanski stressed that Booz Allen is accelerating its push into advanced defense technologies and "outcomes-based delivery" — a model where the firm is paid for results, not just hours worked. He said investments in cyber and AI-enabled work are designed to drive long-term growth and transform how the company operates.
Dividend Held Steady, Full-Year Outlook Reaffirmed
Booz Allen declared a quarterly dividend of $0.59 per share. The record date is August 14, 2026, and payment goes out August 28, 2026. The company also reaffirmed its full fiscal-year guidance, signaling management sees the revenue dip as a temporary headwind rather than a structural shift.
Federal procurement slowdowns remain a risk. The company acknowledged a projected revenue decline tied to those headwinds. But margins expanding and free cash flow of $261 million suggest Booz Allen is managing costs well even as the top line faces pressure.
Big Institutional Investors Shift Positions After Results
Institutional trading around the earnings report was sharp. Charles Schwab Investment Management bought 2,755,464 Booz Allen shares, a 321.9% increase in its position. First Trust Advisors LP sold 2,191,990 shares, cutting its stake by 45.1%, according to Quiver Quant.
Other notable moves included Morgan Stanley selling 1,685,674 shares, T. Rowe Price buying 1,415,740 shares, Bessemer Group selling 1,160,249 shares, and AQR Capital Management cutting nearly 1,046,971 shares. The mixed moves reflect differing views on how federal spending trends will affect Booz Allen's growth over the next few quarters.
Sentiment
Mostly PositiveNEGATIVENEUTRALPOSITIVE
Publishers
25
Articles
47
Reach
72
A
AnonymousAuthor
