Booz Allen (BAH) AI Stock Analysis

• Market Cap: $10.50B
• Dividend Yield: 2.54%
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.52
• Revenue Growth: 2.42%
• EPS Growth: 3.05%
• Country: US
• Employees: 35,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 1.49
• Shares Outstanding: 121,301,200
• 10 Day Avg. Volume: 3,077,964
• 30 Day Avg. Volume: 2,207,098
• PEG Ratio: 0.25
• Price to Book (P/B): 13.32
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 14.67
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 2.50
• Enterprise Value/Ebitda: 12.14
• 1Y Price Target: $99.20
• Price Target Upside: 15.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 5.61
• Revenue Forecast (FY): $11.42B

• Rating: 65 Neutral
• Price Target: $98.00 ▲(13.94% Upside)

Booz Allen's overall score reflects strong operational efficiency and a solid valuation, offset by technical indicators suggesting potential overbought conditions and challenges in revenue growth. The earnings call provided mixed signals, with strengths in national security but significant challenges in the Civil business.

Positive Factors

National Security Segment Growth

The company's focus on national security, with significant contract wins, ensures a stable revenue stream and strengthens its market position in defense and intelligence sectors.

Cyber and AI Leadership

Early achievement of milestones in cyber and AI demonstrates Booz Allen's leadership in these critical areas, enhancing its competitive edge and potential for future growth.

Strong Balance Sheet

A robust balance sheet with significant cash reserves and manageable debt levels provides financial stability and flexibility for strategic investments and operations.

Negative Factors

Civil Business Challenges

Challenges in the Civil business due to procurement delays and pricing pressures could hinder overall revenue growth and impact profitability.

Delayed Business Reacceleration

Delayed recovery in business operations affects revenue projections and may strain resources, requiring strategic adjustments to meet financial targets.

Funding Environment Friction

A challenging funding environment with decreased backlog and slower contract funding could limit growth opportunities and affect long-term project execution.

Booz Allen Business Overview & Revenue Model

Company Description

Booz Allen Hamilton Holding Corporation (BAH) is a prominent management and technology consulting firm based in the United States. Founded in 1914, the company primarily serves the federal government, providing services in areas such as analytics, cyber, engineering, and digital solutions. Booz Allen operates through various sectors, including defense, intelligence, and civil markets, and is known for its expertise in helping clients tackle complex challenges and improve their operational efficiency.

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, where they charge clients for the actual cost of services plus a fee. Key revenue streams include government contracts, particularly in the defense and intelligence sectors, which comprise a significant portion of their business. Additionally, Booz Allen earns revenue from providing technology solutions and products, leveraging its expertise in analytics and cyber security. Strategic partnerships with technology firms and government agencies also contribute to its earnings, enabling Booz Allen to expand its service offerings and enhance its competitive position in the market.

Booz Allen Financial Statement Overview

Summary

Booz Allen demonstrates strong operational efficiency and profitability with healthy EBIT and EBITDA margins. However, challenges in revenue growth and cash flow generation, along with a decline in free cash flow growth, are concerns. The reduction in debt levels improves financial stability, but reversing the recent revenue decline is crucial.

Income Statement

Booz Allen's income statement shows a solid gross profit margin of 53.45% TTM, indicating efficient cost management. However, the net profit margin has decreased to 7.04% TTM, reflecting some pressure on profitability. Revenue has declined by 2.14% TTM, which is a concern, but historical growth rates were positive. The EBIT and EBITDA margins are healthy at 8.79% and 10.18% TTM, respectively, suggesting strong operational performance.

Balance Sheet

The balance sheet reveals a significant reduction in debt, with a debt-to-equity ratio of 0.29 TTM, down from previous high levels, improving financial stability. Return on equity is robust at 77.09% TTM, showcasing effective use of equity. However, the equity ratio is relatively low, indicating a higher reliance on debt in the past.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 17.05% TTM, which is concerning. The operating cash flow to net income ratio is 0.50 TTM, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is strong at 90.02% TTM, reflecting efficient cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.71B	11.98B	10.66B	9.26B	8.36B	7.86B
Gross Profit	6.26B	6.56B	5.74B	4.95B	4.46B	4.20B
EBITDA	1.29B	1.57B	1.20B	650.17M	819.99M	803.07M
Net Income	823.65M	935.00M	605.71M	271.79M	466.74M	608.96M
Balance Sheet
Total Assets	7.15B	7.31B	6.56B	6.55B	6.03B	5.50B
Cash, Cash Equivalents and Short-Term Investments	816.00M	885.00M	554.00M	404.86M	695.91M	990.96M
Total Debt	325.00M	4.22B	3.64B	3.06B	3.10B	2.67B
Total Liabilities	6.16B	6.31B	5.52B	5.56B	4.98B	4.43B
Stockholders Equity	996.00M	1.00B	1.05B	992.00M	1.05B	1.07B
Cash Flow
Free Cash Flow	819.03M	911.00M	192.14M	526.69M	656.56M	631.47M
Operating Cash Flow	909.78M	1.01B	258.84M	602.82M	736.53M	718.68M
Investing Cash Flow	-125.73M	-218.00M	-90.64M	-468.02M	-867.73M	-158.28M
Financing Cash Flow	-526.52M	-460.00M	-19.00M	-425.85M	-163.85M	-311.35M

Booz Allen Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 86.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 86.01 is below the 20-day moving average (MA) of 86.30, below the 50-day MA of 88.20, and below the 200-day MA of 102.88, indicating a bearish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 46.42 is Neutral, neither overbought nor oversold. The STOCH value of 19.91 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	$1.36B	24.85	27.83%	0.99%	8.69%	34.58%
FCN	76 Outperform	$5.46B	22.21	13.30%	―	-0.95%	-10.54%
HURN	75 Outperform	$3.10B	29.95	21.20%	―	12.50%	29.40%
ICFI	74 Outperform	$1.59B	16.29	9.88%	0.65%	-3.81%	-7.05%
BAH	65 Neutral	$10.50B	13.22	74.72%	2.54%	2.42%	3.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RGP	51 Neutral	$174.63M	-0.92	-61.44%	6.65%	-10.83%	-1669.11%

Booz Allen Corporate Events

Booz Allen CFO Matthew Calderone Resigns

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 searching for a new CFO, with Kristine Martin Anderson, Executive Vice President and Chief Operating Officer, stepping in as interim CFO until a permanent replacement is found.

Booz Allen Reports Q2 Fiscal 2026 Results

On October 24, 2025, Booz Allen Hamilton announced its second quarter fiscal 2026 results, highlighting a decline in revenue and net income due to a funding slowdown and delayed recovery in its civil business. Despite these challenges, the company reported a record Q2 backlog of $40 billion and adjusted its full-year outlook to reflect the current environment, emphasizing strong demand for its cyber, AI, and warfighting technologies.