Booz Allen Hamilton Holding Corp. (BAH)
NYSE:BAH
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Booz Allen
(NYSE:BAH)
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Rating:69Neutral
Price Target:
$86.00
▲(10.02% Upside)
Action:DowngradedDate:03/03/26
Score is driven primarily by solid financial performance (notably strong free-cash-flow quality and improved profitability) and favorable valuation (low P/E with a meaningful dividend). These positives are tempered by weak technical momentum (price below key moving averages and negative MACD) and a mixed near-term outlook from the earnings call, where revenue softness and light bookings offset backlog/pipeline strength.
Positive Factors
Cash generation quality
Sustained high FCF conversion and recent TTM FCF growth underpin durable cash generation. That strengthens earnings quality, funds reinvestment, dividends and buybacks without immediate reliance on new debt, and provides a buffer during multi-quarter revenue softness.
Negative Factors
Elevated balance-sheet leverage
High reported leverage on annual statements limits financial flexibility, raises refinancing and interest-rate risk, and reduces room for aggressive M&A or sustained buybacks if revenues or margins weaken, making capital structure a multi-quarter vulnerability.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation quality
Sustained high FCF conversion and recent TTM FCF growth underpin durable cash generation. That strengthens earnings quality, funds reinvestment, dividends and buybacks without immediate reliance on new debt, and provides a buffer during multi-quarter revenue softness.
Read all positive factors
Booz Allen (BAH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.43B
Dividend Yield2.6%
Average Volume (3M)2.22M
Price to Earnings (P/E)13.0
Beta (1Y)0.47
Revenue Growth2.42%
EPS Growth3.05%
CountryUS
Employees35,900
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)1.77
Shares Outstanding120,594,390
10 Day Avg. Volume1,494,095
30 Day Avg. Volume2,223,223
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)13.32
Price to Sales (P/S)1.12
P/FCF Ratio14.67
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit1.50
Enterprise Value/Ebitda7.97
Forecast
1Y Price Target
$96.00Price Target Upside22.81% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)6.26
Revenue Forecast (FY)$11.52B
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 S...
How the Company Makes Money
Booz Allen generates revenue primarily through the provision of consulting services to government and commercial clients. The company's revenue model is largely based on time and materials contracts, fixed-price contracts, and cost-plus contracts,...
Booz Allen Key Performance Indicators (KPIs)
Booz Allen Earnings Call Summary
Earnings Call Date:Jan 23, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 22, 2026
Earnings Call Sentiment Positive
The call conveyed operational resilience and meaningful progress on strategic priorities despite a challenging macro and funding environment. Key positives include stronger-than-expected adjusted profitability and EPS growth, substantial cost reductions (~$150M run-rate), record year-end backlog (> $38B), a near-term pipeline increase (~$53B, +12% YoY), strong cash generation ($248M FCF in Q3), productization (Velox Reverser) and a strategic a16z partnership ($400M commitment). Offsets include a ~10% YoY decline in quarterly revenue, a pronounced civil revenue decline (~28% YoY), a slow funding quarter with low net bookings (book-to-bill 0.3x), and timing/margin pressure from the government shutdown with some cost-savings benefits pushed to next fiscal year. On balance the highlights materially outweigh the lowlights due to improving margins, EPS, cash flow, strategic investments, and a growing qualified pipeline, supporting a constructive outlook for medium-term recovery and margin expansion.Positive Updates
Adjusted Profitability and EPS Growth
Adjusted EBITDA of $285M in Q3 and adjusted EBITDA margin of 10.9% (Q3 and YTD). Net income $200M (+7% YoY); adjusted net income $215M (+9% YoY). Diluted EPS $1.63 (+~12% YoY); adjusted diluted EPS $1.77 (+~14% YoY).
Negative Updates
Quarterly Revenue Decline
Gross revenue of $2.6B in Q3, down ~10% YoY; revenue ex-billables down ~7% YoY. Adjusting for government shutdown timing impacts, gross revenue was down ~6% YoY.
Read all updates
Q3-2026 Updates
Positive
Negative
Adjusted Profitability and EPS Growth
Adjusted EBITDA of $285M in Q3 and adjusted EBITDA margin of 10.9% (Q3 and YTD). Net income $200M (+7% YoY); adjusted net income $215M (+9% YoY). Diluted EPS $1.63 (+~12% YoY); adjusted diluted EPS $1.77 (+~14% YoY).
Read all positive updates
Company Guidance
Booz Allen tightened fiscal 2026 guidance to revenue of $11.3–$11.4 billion, adjusted EBITDA of $1.195–$1.215 billion, adjusted diluted EPS of $5.95–$6.15, and free cash flow of $825–$900 million; Q3 results included $2.6 billion gross revenue (≈‑10% YoY, ≈‑7% ex‑billables), $285 million adjusted EBITDA (10.9% margin; YTD EBITDA margin 10.9%), $200 million net income, $215 million adjusted net income, diluted EPS $1.63 and ADEPS $1.77, $248 million Q3 free cash flow (cash from ops $261M less $13M CapEx), $882 million cash on hand, $3.1 billion net debt (net leverage 2.5x), $888 million net bookings in Q3 (quarterly book‑to‑bill 0.3x, TTM 1.1x), record year‑end backlog >$38 billion (+~2% YoY) and a qualified FY‑2027 pipeline of nearly $53 billion (+12% YoY); management expects Q4 margins to step down, noted cost actions that cut run‑rate spend by ~$150 million, estimated cumulative FY impact from the government shutdown of ~$50 million revenue and ~$20 million profit, $60 million of billable expenses shifted Q3→Q4, and a tax‑estimate change that adds about $0.47 to full‑year ADEPS.Booz Allen Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
57
Neutral
Cash Flow
80
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.41B | 11.98B | 10.66B | 9.26B | 8.36B | 7.86B |
| Gross Profit | 6.01B | 6.56B | 5.74B | 4.95B | 4.46B | 4.20B |
| EBITDA | 1.13B | 1.57B | 1.20B | 650.17M | 819.99M | 803.07M |
| Net Income | 836.71M | 935.00M | 605.71M | 271.79M | 466.74M | 608.96M |
Balance Sheet | ||||||
| Total Assets | 7.05B | 7.31B | 6.56B | 6.55B | 6.03B | 5.50B |
| Cash, Cash Equivalents and Short-Term Investments | 882.00M | 885.00M | 554.00M | 404.86M | 695.91M | 990.96M |
| Total Debt | 280.00M | 4.22B | 3.64B | 3.06B | 3.10B | 2.67B |
| Total Liabilities | 6.03B | 6.31B | 5.52B | 5.56B | 4.98B | 4.43B |
| Stockholders Equity | 1.02B | 1.00B | 1.05B | 992.00M | 1.05B | 1.07B |
Cash Flow | ||||||
| Free Cash Flow | 933.44M | 911.00M | 192.14M | 526.69M | 656.56M | 631.47M |
| Operating Cash Flow | 1.02B | 1.01B | 258.84M | 602.82M | 736.53M | 718.68M |
| Investing Cash Flow | -86.23M | -218.00M | -90.64M | -468.02M | -867.73M | -158.28M |
| Financing Cash Flow | -505.06M | -460.00M | -19.00M | -425.85M | -163.85M | -311.35M |
Booz Allen Technical Analysis
Negative
78.17
Price Trends
80.33
Negative
84.06
Negative
92.46
Negative
Market Momentum
0.15
Negative
44.71
Neutral
30.32
Neutral
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 78.17 is below the 20-day moving average (MA) of 79.79, below the 50-day MA of 80.33, and below the 200-day MA of 92.46, indicating a bearish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 30.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAH.
Booz Allen Risk Analysis
Booz Allen disclosed 53 risk factors in its most recent earnings report. Booz Allen reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Booz Allen Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.00B | 28.72 | 21.03% | ― | 12.50% | 29.40% | |
70 Outperform | $1.05B | 24.31 | 26.10% | 0.97% | 8.69% | 34.58% | |
69 Neutral | $9.43B | 13.00 | 81.85% | 2.60% | 2.42% | 3.05% | |
68 Neutral | $5.39B | 19.86 | 14.38% | ― | -0.95% | -10.54% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $1.23B | 17.06 | 9.11% | 0.65% | -3.81% | -7.05% | |
45 Neutral | $124.27M | ― | -49.24% | 6.74% | -10.83% | -1669.11% |
* Industrials Sector Average
BAH
Booz Allen
78.17
-31.14
-28.49%
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160.22
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-3.80%
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176.26
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5.48%
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120.58
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-15.80%
ICFI
Icf International
67.55
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RGP
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3.62
-1.51
-29.43%
Booz Allen Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Booz Allen Expands Credit Facility and Term Loan Capacity
Positive
Mar 2, 2026
On February 27, 2026, Booz Allen Hamilton amended its long-standing credit agreement to refinance and expand its borrowing capacity, replacing its prior $1.0 billion revolving commitments with a new $1.5 billion revolving credit facility maturing ...
Business Operations and StrategyFinancial Disclosures
Treasury contract cancellation seen as limited revenue impact
Neutral
Feb 6, 2026
On January 26, 2026, the U.S. Department of the Treasury canceled its contracts with Booz Allen Hamilton Holding Corporation, affecting the firm’s government consulting work. Booz Allen reaffirmed its fiscal 2026 guidance and said the Treasu...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Booz Allen Reports Q3 Results, Raises Fiscal 2026 EPS Guidance
Positive
Jan 23, 2026
On January 23, 2026, Booz Allen Hamilton reported third-quarter fiscal 2026 results showing revenue of $2.6 billion, down 10.2% year over year (approximately 6% excluding the impact of the U.S. government shutdown), but with improved profitability...
Executive/Board Changes
Booz Allen CFO Matthew Calderone Resigns
Neutral
Dec 15, 2025
On December 11, 2025, Booz Allen Hamilton announced the resignation of Matthew A. Calderone, Executive Vice President and Chief Financial Officer, effective February 1, 2026, as he pursues an opportunity outside the industry. The company has begun...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.