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Booz Allen Hamilton Raises Profit Forecast Despite Revenue Slip

Shares of Booz Allen Hamilton climbed 5% in premarket trading after the defense contractor beat quarterly earnings expectations and lifted its full-year outlook. Despite a 3.9% dip in revenue to $2.78 billion, the firm reported a second-quarter profit of $181 million, fueled by strong momentum in its national security portfolio.

Booz Allen Hamilton Raises Profit Forecast Despite Revenue Slip

Adjusted earnings reached $1.76 a share for the period ending September 30, comfortably exceeding the $1.48 consensus estimated by analysts. The company is leaning into cyber and defense-technology products to offset cooling performance elsewhere. This strategic pivot follows a period of significant workforce contraction, with headcount now sitting at approximately 31,000—a 4.6% decrease from the previous year.

The firm’s total backlog grew 1.9% to $41 billion, signaling sustained demand despite pressure from federal spending shifts. Management now projects adjusted earnings between $6.50 and $6.70 a share for fiscal 2027, raising the floor from its previous guidance. The updated revenue target, now set between $11.3 billion and $11.6 billion, reflects a more precise outlook as the company navigates ongoing scrutiny regarding federal contract costs.

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