Booz Allen Hamilton Reports Q1 Fiscal 2027 Earnings with Mixed Revenue Performance
Booz Allen Hamilton Holding Corporation (NYSE: BAH) reported first-quarter fiscal year 2027 revenue of $2.8 billion, a decline of 4.2% compared to the prior year. The drop was primarily due to an 16% decrease in civil revenue, which offset a modest 1% increase in national security revenue. Despite this, profitability and cash flow exceeded expectations with adjusted EBITDA rising to $334 million (an 11.9% margin) and free cash flow reaching $261 million. The company reaffirmed its full-year guidance as funded backlog increased by 15% year over year to $4.7 billion, while total backlog rose 3% to more than $39 billion. Management noted strengthening demand in national security services and highlighted cyber and defense technology—particularly agentic AI, zero-trust solutions, command-and-control software, and edge computing—as key growth areas. Booz Allen also expects to close its acquisition of Ultra I&C Mission Solutions by the second quarter, which is anticipated to contribute strong revenue and margin potential. Civil sector challenges are expected to persist in Q2 due to contract roll-offs but should gradually ease later this year.
Tickers: $BAH
Topics: AI cybersecurity defense technology government services M&A