Booz Allen (BAH) AI Stock Analysis

• Market Cap: $12.72B
• Dividend Yield: 2.11%
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.58
• Revenue Growth: 9.25%
• EPS Growth: 75.69%
• Country: US
• Employees: 35,900
• Sector: Industrials
• Sector Strength: 74
• Industry: Consulting Services
• EPS (TTM): 1.48
• Shares Outstanding: 123,248,690
• 10 Day Avg. Volume: 1,296,755
• 30 Day Avg. Volume: 1,768,839
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 2.53
• Enterprise Value/Ebitda: 10.47
• 1Y Price Target: $125.00
• Price Target Upside: 22.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 76 Outperform
• Price Target: $121.00 ▲(18.11% Upside)

Booz Allen's overall stock score is driven by strong financial performance and strategic corporate events. While technical indicators suggest caution, the company's solid valuation and positive earnings call highlights, particularly in defense and intelligence sectors, support a favorable outlook. Challenges in the Civil business and funding environment are notable risks.

Positive Factors

Earnings

June Q bookings were very strong, supportive of the 0-4% F26 organic sales guide.

Strategic Initiatives

The company won strategic awards in areas like augmented reality, data analytics, cybersecurity, and AI.

Strategic Investments

BAH tripled its investment in its venture arm, which is seen as a key strategic move to remain at the forefront of new tech and innovation.

Negative Factors

Backlog

Funded backlog represents the lowest 'coverage' in over 10+ years, reflective of a sluggish funding backdrop across the federal government.

Financial Performance

Revenue is down 1% in the quarter, which is the first quarterly decline in a decade.

Headcount

Headcount is down 5% year over year and down 7% sequentially.

Booz Allen Business Overview & Revenue Model

Company Description

Booz Allen Hamilton Holding Corporation provides management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber services to governments, corporations, and not-for-profit organizations in the United States and internationally. The company offers consulting solutions for various domains, business strategies, human capital, and operations. It also provides analytics services, which focuses on delivering transformational solutions in the areas of artificial intelligence, such as machine learning and deep learning; data science, such as data engineering and predictive modeling; automation and decision analytics; and quantum computing. In addition, the company designs, develops, and implements solutions built on contemporary methodologies and modern architectures; delivers engineering services and solutions to define, develop, implement, sustain, and modernize complex physical systems; and provides cyber risk management solutions, such as prevention, detection, and cost effectiveness. Booz Allen Hamilton Holding Corporation was founded in 1914 and is headquartered in McLean, Virginia.

How the Company Makes Money

Booz Allen generates revenue primarily through consulting services provided to government and commercial clients. The company operates on a fee-for-service model, where it charges clients based on hours worked, project milestones, or retainer agreements. Key revenue streams include contracts with federal government agencies, particularly in defense and intelligence sectors, which account for a significant portion of its income. Additionally, Booz Allen benefits from long-term contracts that provide stability and predictability in revenue. The firm also engages in partnerships with technology firms and academic institutions to enhance its service offerings and expand its market reach, further contributing to its earnings.

Booz Allen Financial Statement Overview

Summary

Booz Allen's financial performance is robust, with strong revenue and profit growth, efficient cost management, and effective cash flow conversion. However, the high debt-to-equity ratio poses a potential risk, despite strong returns on equity.

Income Statement

Booz Allen has demonstrated strong revenue growth over the years, with a notable increase from $7.86 billion in 2021 to $11.96 billion TTM (Trailing-Twelve-Months) in 2025. The gross profit margin stands at 54.26% TTM, indicating efficient cost management. The net profit margin has improved significantly to 8.70% TTM, reflecting better operational profitability. EBIT and EBITDA margins are also robust at 11.47% and 12.39% TTM, respectively, highlighting effective core business operations. These factors contribute to a strong income statement performance.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 27.13% TTM, which represents significant leverage and potential risk from debt obligations. However, the return on equity (ROE) is strong at 97.75% TTM, indicating efficient use of equity to generate profits. The equity ratio is relatively low at 14.85% TTM, pointing to lower asset financing through equity, which could impact financial stability. Overall, the balance sheet reflects a balance of strengths in equity returns against potential risks from leverage.

Cash Flow

Booz Allen has shown a solid free cash flow growth rate, with free cash flow increasing from $631 million in 2021 to $987 million TTM. The operating cash flow to net income ratio is 1.03 TTM, indicating good alignment between cash generation and accounting profits. Free cash flow to net income ratio is 0.95 TTM, showing that the company effectively converts earnings into cash. Despite these strengths, the cash flow from financing activities, primarily related to debt servicing, remains a consideration.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.96B	11.98B	10.66B	9.26B	8.36B	7.86B
Gross Profit	6.49B	6.56B	5.74B	4.95B	4.46B	4.20B
EBITDA	1.57B	1.57B	1.20B	650.17M	819.99M	803.07M
Net Income	1.04B	935.00M	605.71M	271.79M	466.74M	608.96M
Balance Sheet
Total Assets	7.17B	7.31B	6.56B	6.55B	6.03B	5.50B
Cash, Cash Equivalents and Short-Term Investments	711.00M	885.00M	554.00M	404.86M	695.91M	990.96M
Total Debt	4.18B	4.22B	3.64B	3.06B	3.10B	2.67B
Total Liabilities	6.11B	6.31B	5.52B	5.56B	4.98B	4.43B
Stockholders Equity	1.06B	1.00B	1.05B	992.00M	1.05B	1.07B
Cash Flow
Free Cash Flow	987.31M	911.00M	192.14M	526.69M	656.56M	631.47M
Operating Cash Flow	1.08B	1.01B	258.84M	602.82M	736.53M	718.68M
Investing Cash Flow	-122.67M	-218.00M	-90.64M	-468.02M	-867.73M	-158.28M
Financing Cash Flow	-539.61M	-460.00M	-18.80M	-425.85M	-163.85M	-311.35M

Booz Allen Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 102.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAH, the sentiment is Negative. The current price of 102.45 is below the 20-day moving average (MA) of 108.61, below the 50-day MA of 108.34, and below the 200-day MA of 116.91, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 34.29 is Neutral, neither overbought nor oversold. The STOCH value of 9.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAH.

Booz Allen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAI	78 Outperform	$1.29B	23.83	29.05%	1.01%	9.28%	44.19%
BAH	76 Outperform	$12.72B	12.67	96.28%	2.11%	9.25%	75.69%
FCN	75 Outperform	$5.45B	23.72	12.33%	―	-0.89%	-23.72%
TRU	74 Outperform	$17.34B	43.29	9.06%	0.50%	9.34%	―
HURN	72 Outperform	$2.51B	24.67	21.55%	―	8.99%	35.56%
ICFI	69 Neutral	$1.74B	16.40	11.09%	0.59%	-0.47%	10.03%
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%

Booz Allen Corporate Events

Booz Allen Holds Annual Stockholders Meeting, Approves Key Proposals

On July 23, 2025, Booz Allen Hamilton held its Annual Meeting of Stockholders, where several key proposals were voted on. The election of directors saw all nominees elected, with varying levels of support. Ernst & Young LLP was ratified as the independent public accounting firm for fiscal year 2026. Additionally, a non-binding advisory vote on executive compensation was approved, while a stockholder proposal did not pass. These outcomes reflect the company’s ongoing governance and strategic priorities, impacting its operational and financial oversight.

Booz Allen Reports Q1 Fiscal 2026 Results

On July 25, 2025, Booz Allen Hamilton announced its first quarter fiscal 2026 results, showing performance in line with expectations. The company reported a slight revenue decline of 0.6% to $2.9 billion, but saw increases in adjusted net income and adjusted EBITDA. Booz Allen highlighted strong performance in defense and intel markets, a record Q1 backlog of $38 billion, and a quarterly book-to-bill ratio of 1.42x. The company also repurchased 1.1% of its outstanding shares and anticipates a $200 million federal cash tax benefit from new S174 rules. Strategic investments are being accelerated to enhance technology transformation, positioning Booz Allen to continue delivering on mission priorities.

Booz Allen Expands Board, Appoints Robert C. O’Brien

On June 9, 2025, Booz Allen Hamilton expanded its Board of Directors from twelve to thirteen members, appointing Robert C. O’Brien, a former U.S. National Security Advisor, to the board. O’Brien’s extensive experience in national security and geopolitics is expected to enhance Booz Allen’s strategic capabilities, particularly in serving its stakeholders and advancing its mission in national security and defense.