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Sep 30
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%.
Booz Allen
Booz Allen
Booz Allen Revenue by Segment
Revenue by Segment
Defense Revenue
CapyFin.comIntelligence Revenue
CapyFin.comCivil Revenue
CapyFin.com 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.
- Free cash flow guidance lowered to $850M–$950M.