Booz Allen Hamilton anticipates faster growth in the latter half of its fiscal year, driven primarily by sustained demand for national security technologies and signs of stabilization in its civil government business. This outlook prompted the company to raise its full-year earnings guidance following the release of its latest quarterly results.
During the second quarter, Booz Allen reported a net profit of $181 million, or $1.50 per share, compared with $175 million, or $1.42 per share, in the same period last year. On an adjusted basis, earnings reached $1.76 per share, surpassing analyst expectations of $1.48 per share. Revenue declined 3.9% to $2.78 billion for the quarter ending September 30, slightly below forecasts of $2.81 billion, largely due to an 11% decrease in billable expenses, according to Chief Financial Officer Troy Lahr.
The company’s national-security segment experienced modest revenue growth of 0.6% year-over-year, reflecting strong demand that has fueled increased work on recently awarded contracts and expansion in cybersecurity and defense technology offerings. Booz Allen’s large backlog of funded projects and aggressive hiring efforts signal confidence in this part of the business.
By contrast, the civil government sector saw a 15% drop in revenue compared to the prior year, attributed to reduced contract sizes, fewer new initiatives, and ongoing uncertainty surrounding federal spending. The Trump administration’s efforts to curb federal contract expenses and push for cost efficiencies have heightened pressure on consulting firms, including Booz Allen.
Despite these challenges, company leadership expressed cautious optimism. Chief Operating Officer Kristine Martin Anderson highlighted efforts to rebuild Booz Allen’s civil portfolio, expecting the rate of decline in this segment to ease in the second half of the fiscal year. Lahr projected that civil business revenue will be flat to slightly down sequentially through the third and fourth quarters.
Looking ahead, Booz Allen adjusted its full-year guidance, now anticipating adjusted earnings between $6.50 and $6.70 per share, up from the previous range of $6.00 to $6.35 per share. The revenue forecast was narrowed to a range of $11.3 billion to $11.6 billion, slightly above analysts’ consensus estimates of $6.34 per share on $11.42 billion in revenue.