U.S. defense and technology consulting firm Booz Allen Hamilton reported fiscal 2027 first-quarter results, with adjusted earnings per share significantly exceeding Wall Street expectations, although revenue declined year-over-year.

According to the financial report, for the first quarter ended June 30, the company's revenue was $2.8 billion, meeting analyst forecasts but falling 4.2% from $2.9 billion in the same period last year. Adjusted earnings per share came in at $1.81, well above the market's expected $1.49. Adjusted EBITDA grew 7.4% year-over-year to $334 million, with margins expanding 130 basis points to 11.9%. Free cash flow surged to $261 million from $96 million in the prior-year period.

Business segment performance showed divergence. The homeland security segment contributed $2.0 billion in revenue, driven by accelerating demand. In contrast, the civil and commercial segment generated only $772 million in revenue, a notable decline from $923 million in the same quarter last year, remaining the primary drag on overall revenue. The book-to-bill ratio for the quarter stood at 1.5 times, and total backlog grew to $39 billion, up 3.2% year-over-year.

The company issued its full-year fiscal 2027 guidance, projecting adjusted earnings per share between $6.00 and $6.35 and revenue in the range of $11.2 billion to $11.7 billion. Notably, the midpoint of the earnings guidance at $6.18 is below the analyst consensus of $6.29, while the revenue midpoint of $11.45 billion slightly exceeds the market expectation of $11.41 billion.