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# Booz Allen CEO Calls Its Cyber Business 'An Unrecognized World Leader' And Says Investors Need A Clearer View Of It
- URL: https://www.bullished.co/booz-allen-ceo-calls-its-cyber-business-an-unrecognized-world-leader-and-says-investors-739e856a/
- Published: 2026-10-23T13:31:05.000Z
- Updated: 2026-10-23T13:31:05.000Z
- Description: Horacio Rozanski said Guile, a counter-AI product, cut attack success rates by more than 95% in testing at scale.
- Author: Matteo Parrino
- Tags: Earnings, BAH, Industry: Industrials

[Booz Allen Hamilton](https://www.bullished.co/tag/bah/) CEO Horacio Rozanski said on the company's earnings call Friday that its cyber business "at one level is an unrecognized world leader in cyber," and that the company must "dimensionalize it better" so investors can see its value. Booz Allen, which builds technology products and solutions, including cyber and defense technology, for government and business customers, [lifted its full-year outlook](https://www.marketwatch.com/story/booz-allen-lifts-earnings-outlook-as-2q-profit-climbs-51dc1e88?ref=bullished.co) alongside second-quarter results.

## Guile and the Velox suite

Rozanski, who is chairman and chief executive, said Guile, a product built to counter AI-enabled attacks, cut attack success rates by more than 95% in testing at scale. It is in private beta with government and commercial customers. In the lab, he said, even the most advanced models are stymied by Guile "to the tune of 95% of the time."

Guile sits inside Velox, the company's agentic cyber product suite. Rozanski said the plan had been to launch three or four Velox products over two years, but the company pushed much of that into private betas sooner. The promise, he said, will play out over "the next couple of years" more than over the next couple of quarters.

Booz Allen serves all 16 critical infrastructure sectors and dozens of Fortune 500 companies, he said.

## Sizing cyber for investors

A JPMorgan analyst asked how investors should size Booz Allen's cyber exposure against software-covered cyber stocks, which have different growth and margin structures. Rozanski called cyber the company's most rapidly transforming business. A couple of years ago it was largely labor-based and cost-plus, he said; now it is becoming technology-first and solutions-first.

He said better quantifying the business is something to work on over the coming quarters and years. "That is in the cards," he said.

CFO Troy Lahr said the company is moving away from the old growth model tied to headcount, with the shift toward products and fixed-price work expected to be gradual.

## The quarter around it

Second-quarter revenue [fell 3.9%](https://www.marketwatch.com/story/booz-allen-lifts-earnings-outlook-as-2q-profit-climbs-51dc1e88?ref=bullished.co) from a year earlier to $2.8 billion, which Lahr tied to a 10.6% drop in billable expenses. Adjusted EBITDA was $313 million, an 11.3% margin, and adjusted earnings per share rose 18% to $1.76\. National security revenue grew 1%, or 6% excluding billable expenses, while civil fell 15%.

The company spent $729 million on Ultra Mission Solutions, which it acquired in August to strengthen its defense technology business. It now expects fiscal 2027 revenue of $11.3 billion to [$11.6 billion](https://qz.com/booz-allen-hamilton-earnings-outlook-profit-beat-102326?ref=bullished.co), adjusted EPS of $6.50 to $6.70, and free cash flow of $850 million to $925 million. Total backlog was nearly $41 billion.

Rozanski also said defense technology is meant to be a growth leader alongside cyber, and that he does not expect a sudden jump in margins from one quarter to the next, but steady growth.

### Sources

- [Booz Allen Lifts Earnings Outlook as 2Q Profit Climbs](https://www.marketwatch.com/story/booz-allen-lifts-earnings-outlook-as-2q-profit-climbs-51dc1e88?ref=bullished.co) — MarketWatch
- [Booz Allen is lifting full-year outlook after Q2 earnings beat](https://qz.com/booz-allen-hamilton-earnings-outlook-profit-beat-102326?ref=bullished.co) — qz.com
- [Booz Allen: Fiscal Q2 Earnings Snapshot](https://finance.yahoo.com/markets/stocks/articles/booz-allen-fiscal-q2-earnings-105138288.html?ref=bullished.co) — Associated Press
- [Booz Allen Hamilton Q2 Adj. EPS $1.76 Beats $...](https://www.benzinga.com/news/earnings/26/10/62553942/booz-allen-hamilton-q2-adj-eps-1-76-beats-1-49-estimate-sales-2-778b-miss-2-809b-estimate?ref=bullished.co) — benzinga.com
- [Technology Investments & Improved Execution Aid BAH Amid Rising Costs](https://finance.yahoo.com/markets/stocks/articles/technology-investments-improved-execution-aid-133000570.html?ref=bullished.co) — Yahoo Finance

### More on Booz Allen Hamilton

- [Booz Allen Raises Its Profit Outlook To $6.50-$6.70 A Share Even As Revenue Slips 3.9%](https://www.bullished.co/booz-allen-raises-its-profit-outlook-to-6-50-6-70-a-share-even-as-revenue-slips-3-9-5914f61f/)

[All Booz Allen Hamilton (BAH) coverage →](https://www.bullished.co/tag/bah/)