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Sep 30, 2025
Booz Allen Q2 2026 Earnings Report
Booz Allen reported a significant decline in revenue and earnings in Q2 FY26, citing a funding slowdown.
Key Takeaways
Booz Allen's Q2 FY26 results reflected a challenging environment with revenue and profit declines, though national security contracts and a record backlog offered some optimism.
Revenue declined 8.1% YoY to $2.9B due to market headwinds.
Net income fell over 55% to $175M, reflecting a sharp bottom-line impact.
The company posted a record $40B total backlog with a 1.7x quarterly book-to-bill ratio.
Adjusted EBITDA margin slightly compressed to 11.2%.
Revenue by Segment
Forward Guidance
Booz Allen lowered its FY26 guidance, reflecting continued funding delays and operational headwinds, while maintaining a focus on high-demand areas like cyber and AI.
Positive Outlook
- Strong demand for cyber, AI, and warfighting technologies.
- Maintained robust pipeline across national security segments.
- Capital deployment remains strong with $279M in Q2.
- Free cash flow remains positive at $395M.
- Backlog and book-to-bill metrics signal future revenue potential.
Challenges Ahead
- FY26 revenue guidance cut from $12.0–$12.5B to $11.3–$11.5B.
- Adjusted EBITDA forecast reduced to $1.19–$1.22B.
- Adjusted EPS lowered to $5.45–$5.65 from $6.20–$6.55.
- Civil segment continues to face a delayed recovery.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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