Booz Allen Hamilton Holding Corporation (BAH)

Booz Allen Hamilton reported second-quarter fiscal 2027 revenue of $2.8 billion on 23 October 2026, down 3.9 percent from a year earlier 2.

Net income rose 3.4 percent to $181 million, and the company raised its fiscal 2027 guidance for adjusted diluted earnings per share to a range of $6.50 to $6.70 from $6.00 to $6.35 2.

The 10-Q says the drop came mainly from a slowed buying season a year earlier, which delayed program starts this year, mostly at civil customers, and led to fewer staff and lower billable expenses 1.

Billable expenses are mostly subcontractor and travel costs passed through to customers, and they carry lower margins 2.

Total backlog, the value of contracted work including options not yet exercised, was $41 billion, up 1.9 percent from a year earlier, and orders in the quarter ran at 1.5 times revenue 21.

The company acquired the cybersecurity firm Defy Security on 6 April 2026 for $235 million, and the defense technology business Ultra Mission Solutions on 24 August 2026 for about $729 million 1.

An open question is federal funding, which runs on a continuing resolution through 11 December 2026, and the company says a prolonged shutdown could hurt its business 1.

Booz Allen says it has served customers for more than 112 years and, after the attacks of September 2001, moved deeply into national security work such as cyber operations and counter-terrorism 3.

In 2008 it chose to protect its government and national security business and spun off its global commercial business 3.

In 2013 it began a multi-year push to rebuild its workforce around technologists and to invest in artificial intelligence, cyber and quantum technology 3.

That investment drove growth: revenue rose 12 percent to $11,980 million in fiscal 2025 from $10,662 million in fiscal 2024 3.

Washington Technology reported on 23 May 2025 that civil work was about 35 percent of fiscal 2025 revenue, after growing 10 percent from fiscal 2024 5.

Then federal buying slowed 3. In fiscal 2026 revenue fell 6 percent to $11,217 million, which the company blamed on a slowed procurement and funding environment, including the government shutdown in the third quarter of fiscal 2026 3.

Those factors cut headcount and billable expenses 3.

In May 2025 Washington Technology reported that the company planned to cut about 2,500 positions, roughly 7 percent of its workforce, mostly in its civil business 5.

Chief executive Horacio Rozanski called it a "resetting and restructuring" of the civil business 5.

The annual report records $61 million of severance and related charges in fiscal 2026 for cost management and that civil restructuring 3.

On 30 November 2025 the company also sold a group of contracts, with the workforce serving them, for a pre-tax net gain of $6 million 3.

Between the cuts it kept adding capability 3. On 7 June 2024 it acquired PAR Government Systems, a maker of real-time communications and situational awareness tools, for about $99 million 3.

What the company sells

Booz Allen calls itself an advanced technology company that builds products and solutions for government and business, and it reports as a single segment 1.

In the three months ended 30 September 2026, National Security customers supplied 75 percent of revenue, or $2,076 million, and civil and commercial customers 25 percent, or $702 million 1.

By contract type that quarter, cost-reimbursable work was 59 percent of revenue, time-and-materials 21 percent and fixed-price 20 percent 1.

The company says fixed-price work tied to a delivered outcome generally earns higher margins but carries more risk if costs overrun 1.

Cyber and defense technology

The company says it is the federal government's largest artificial intelligence provider, with about 400 active AI projects 3.

Its cyber line includes Vellox, a suite of AI-driven cyber products 3.

Help Net Security reported on 27 July 2026 that Vellox Ranger, which writes threat detections tailored to a customer's own systems, was generally available 6.

Vellox Reverser, a malware analysis tool, is also generally available, while Striker and LayerOne are in limited preview and Navigator and Reverser Triage are listed as coming soon 6.

Its defense technology products include Sit(x)R, EdgeExtend and the Modular Detachment Kit, built in three flagship engineering facilities backed by more than 20 manufacturing centers and research labs 3.

Ultra Mission Solutions, bought in August 2026, makes mission-critical software, encryption and edge compute products 1.

Virginia Business reported that it employed about 220 people, including roughly 135 specialized engineers, at five U.S. facilities as of June, and now serves as the product arm of Booz Allen's defense technology business 4.

Customers and contracts

The Department of Veterans Affairs was the largest single customer in fiscal 2026, at 10 percent of revenue 3.

The company worked under 5,026 contracts and task orders in fiscal 2026, and about 84 percent of revenue came from 2,426 active task orders under indefinite-delivery contracts, which let agencies order work as needs arise 3.

Its win rates in fiscal 2026 were 57 percent on new contracts and 89 percent on re-competed ones 3.

People and places

The company employed about 31,500 people across 23 countries as of 31 March 2026, and the 10-Q counts about 31,000 as of 30 September 2026 31.

It owns no real estate, leases about 2 million square feet and plans to move its headquarters from McLean to Reston, Virginia, in the fall of 2027 3.

Horacio Rozanski has been chief executive since 2015 and chairman since July 2024 3.

Kristine Martin Anderson became president in May 2026, and Troy Lahr joined as chief financial officer in May 2026 from the space company Sierra Space 3.

Rivals and problems

The annual report names kinds of rivals rather than firms: large software companies, global technology providers, government technology contractors, large defense contractors and systems integrators 3.

An executive order of 7 January 2026 could restrict share repurchases and dividends at defense contractors the Secretary of War names as underperforming, and the company says it could be named 1.

A second order, signed on 30 April 2026, directs agencies to favor firm-fixed-price contracts, which the company says it supports 1.

The umbrella, in words

Booz Allen Hamilton Holding Corporation was incorporated in Delaware in May 2008 and is the parent of the operating company Booz Allen Hamilton Inc. 32.

It owns the businesses it acquired outright: Defy Security for cyber services and products, and Ultra Mission Solutions for defense technology 1.

For partners, the annual report names Amazon Web Services, the venture firm Andreessen Horowitz and the defense company Shield AI, as agreed partnerships and venture investments, with no stake sizes given 3.

No facility is owned; the headquarters at 8283 Greensboro Drive, McLean, is leased 3.

For control, BlackRock reported 13,083,615 Class A shares, or 10.93 percent, in a Schedule 13G/A dated 8 January 2026, as of 31 December 2025 8.

Vanguard Portfolio Management reported 7,904,320 shares in a Schedule 13G dated 29 April 2026, as of 31 March 2026 8.

Vanguard Capital Management reported 6,306,422 shares in a Schedule 13G of the same date, as of the same day 8.

The company expects fiscal 2027 revenue of $11.3 billion to $11.6 billion and free cash flow of $850 million to $925 million, according to its release of 23 October 2026 2.

It also expects adjusted EBITDA, earnings before interest, taxes, depreciation and amortization with some one-off items removed, of $1,260 million to $1,290 million, a margin of about 11 percent 2.

The company expects capital spending of about $200 million in fiscal 2027 2.

A regular quarterly dividend of $0.59 per share is payable on 4 December 2026 to stockholders of record on 12 November 2026 2.

On 22 June 2026 the company said it expects Ultra Mission Solutions revenue to grow at a strong double-digit rate for several years, with EBITDA margins well above 20 percent 7.

Navigator and Reverser Triage are listed as coming soon in the Vellox suite, according to Help Net Security 6.

Pending decisions include a Senate Armed Services Committee provision in its fiscal 2027 defense bill that would require a qualified defense investment plan, or face limits on stockholder distributions, the 10-Q says 1.

The 10-Q says the company plans to move to Reston in the fall of 2027, depending on tenant improvements 3.