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Booz Allen
(NYSE:BAH)
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Rating:67Neutral
Price Target:
$72.00
▼(-11.95% Downside)
Action:Reiterated
Date:06/23/26
BAH’s score is driven by strong cash generation and improved profitability, supported by attractive valuation (low P/E and solid dividend yield). These positives are tempered by clear technical weakness (price below key moving averages with negative momentum) and earnings-call risks tied to near-term revenue pressure—especially in Civil—and procurement/funding timing uncertainty.
Positive Factors
Strong free cash flow conversion
Booz Allen converts a high share of earnings into cash (FCF ~$0.9B–$1.0B and 74%–91% conversion). Durable cash generation underpins capital allocation flexibility for M&A, product investment, dividends and buybacks and cushions the business through revenue cyclicality over the next several quarters.
Negative Factors
Large Civil segment decline
A steep Civil decline (-23% Q4) signals durable top‑line exposure to budget cuts and contract reductions in that segment. Persistent weakness in Civil reduces revenue visibility, pressures utilization and could force restructuring or slower hiring, weighing on growth prospects over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow conversion
Booz Allen converts a high share of earnings into cash (FCF ~$0.9B–$1.0B and 74%–91% conversion). Durable cash generation underpins capital allocation flexibility for M&A, product investment, dividends and buybacks and cushions the business through revenue cyclicality over the next several quarters.
Read all positive factors
Booz Allen Key Performance Indicators (KPIs)
Any
Backlog By Type
Shows the composition of future work commitments by contract type, indicating the company's revenue visibility and strategic focus areas.
Shows the composition of future work commitments by contract type, indicating the company's revenue visibility and strategic focus areas.
Data provided by:
The Fly
The FlyBooz Allen (BAH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.49B
Dividend Yield2.6%
Average Volume (3M)1.97M
Price to Earnings (P/E)9.0
Beta (1Y)0.47
Revenue Growth-6.37%
EPS Growth-5.06%
CountryUS
Employees35,900
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)6.92
Shares Outstanding119,934,044
10 Day Avg. Volume2,047,425
30 Day Avg. Volume1,966,413
Financial Highlights & Ratios
PEG Ratio-2.22
Price to Book (P/B)8.70
Price to Sales (P/S)0.86
P/FCF Ratio10.11
Enterprise Value/Market Cap1.59
Enterprise Value/Revenue1.06
Enterprise Value/Gross Profit2.38
Enterprise Value/Ebitda9.83
Forecast
1Y Price Target
$82.56Price Target Upside0.96% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)6.27
Revenue Forecast (FY)$11.40B
Booz Allen Business Overview & Revenue Model
Company Description
Booz Allen Hamilton Holding Corporation (BAH) operates as a prominent consulting and technology firm, offering a diverse range of services to governmental bodies, commercial enterprises, and non-profit organizations both domestically and internati...
How the Company Makes Money
Booz Allen makes money primarily by providing professional services to government clients under contract. Its revenue model is largely project- and program-based: agencies procure Booz Allen’s consulting, engineering, cybersecurity, analytics, and...
Booz Allen Earnings Call Summary
Earnings Call Date:May 22, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Neutral
The call balanced strong operational and financial resilience against meaningful near‑term revenue headwinds. Positives include expanded profitability (adjusted EBITDA and margin expansion), robust free cash flow, backlog growth, increased outcome‑based opportunities (OTAs), product acceleration (Vellox, EdgeXtend), and sizable national security awards (BEATS, Golden Dome). Negatives center on steep Civil revenue declines (‑23% in Q4), overall revenue contraction (Q4 down 6.4%), a choppy funding/procurement environment, and a more cautious first half of FY27. Management emphasizes cost discipline, productivity gains and targeted investments in cyber and defense tech, and provided a measured FY27 guide that assumes gradual improvement. Overall, the positives on profitability, cash generation, backlog and strategic repositioning are offset by material near‑term top‑line pressure in Civil and funding timing risk.Positive Updates
Strong Profitability and Margin Expansion
Fiscal 2026 adjusted EBITDA of $1.2B with an adjusted margin of 11%; Q4 adjusted EBITDA $309M and margin 11.1%, up 50 basis points year‑over‑year. Adjusted diluted EPS for the year $6.51 and Q4 ADEPS $1.78, up roughly 11% year‑over‑year.
Negative Updates
Large Civil Business Decline
Civil revenue fell 23% year‑over‑year in Q4 and was the primary driver of FY26 revenue decline. Management expects Civil to decline high single digits in FY27 with the first half of the year particularly weak due to difficult comps and prior contract reductions.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Profitability and Margin Expansion
Fiscal 2026 adjusted EBITDA of $1.2B with an adjusted margin of 11%; Q4 adjusted EBITDA $309M and margin 11.1%, up 50 basis points year‑over‑year. Adjusted diluted EPS for the year $6.51 and Q4 ADEPS $1.78, up roughly 11% year‑over‑year.
Read all positive updates
Company Guidance
Booz Allen guided fiscal 2027 revenue of $11.2–$11.7 billion (recent M&A roughly net neutral), adjusted EBITDA of $1.24–$1.29 billion (implying ~11% adjusted EBITDA margin), adjusted EPS of $6.00–$6.35 (guidance excludes strategic venture impacts; FY26 included $0.11/ share of unrealized gains), and free cash flow of $825–$925 million (includes Reston HQ spend; excludes a $170 million IRS refund now expected in FY2028). Management expects national security to grow mid‑single digits while Civil declines high‑single digits (Q1 is the low point with sequential improvement), and cited a FY26 backlog of >$38 billion (funded backlog $4.3 billion), trailing 12‑month book‑to‑bill of 1.1x (Q4 book‑to‑bill 0.9x; nearly 1.2x including the MCTP award under protest), Q4 net bookings $2.5 billion, and $1.7 billion of Q4 awards. For context, FY26 results included revenue of $11.2 billion, adjusted EBITDA $1.2 billion (11% margin), adjusted EPS $6.51, free cash flow $951 million; Q4 revenue $2.8 billion (-6.4% YoY), Q4 adjusted EBITDA $309 million (11.1% margin), Q4 adjusted EPS $1.78; liquidity was $2.2 billion, cash $728 million, and net leverage 2.6x.Booz Allen Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
78
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.22B | 11.98B | 10.66B | 9.26B | 8.36B |
| Gross Profit | 2.35B | 6.56B | 5.74B | 4.95B | 4.46B |
| EBITDA | 1.24B | 1.57B | 1.20B | 650.17M | 819.99M |
| Net Income | 851.00M | 935.00M | 605.71M | 271.79M | 466.74M |
Balance Sheet | |||||
| Total Assets | 7.41B | 7.31B | 6.56B | 6.55B | 6.03B |
| Cash, Cash Equivalents and Short-Term Investments | 728.00M | 885.00M | 554.00M | 404.86M | 695.91M |
| Total Debt | 4.12B | 4.22B | 3.64B | 3.06B | 3.10B |
| Total Liabilities | 6.30B | 6.31B | 5.52B | 5.56B | 4.98B |
| Stockholders Equity | 1.10B | 1.00B | 1.05B | 992.00M | 1.05B |
Cash Flow | |||||
| Free Cash Flow | 951.00M | 911.00M | 192.14M | 526.69M | 656.56M |
| Operating Cash Flow | 1.04B | 1.01B | 258.84M | 602.82M | 736.53M |
| Investing Cash Flow | -300.00M | -218.00M | -90.64M | -468.02M | -867.73M |
| Financing Cash Flow | -898.00M | -460.00M | -19.00M | -425.85M | -163.85M |
Booz Allen Technical Analysis
Negative
81.77
Price Trends
73.87
Negative
76.50
Negative
83.05
Negative
Market Momentum
-4.44
Positive
34.13
Neutral
18.97
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 81.77 is above the 20-day moving average (MA) of 69.51, above the 50-day MA of 73.87, and below the 200-day MA of 83.05, indicating a bearish trend. The MACD of -4.44 indicates Positive momentum. The RSI at 34.13 is Neutral, neither overbought nor oversold. The STOCH value of 18.97 is Positive, 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 52 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $4.63B | 18.05 | 15.14% | ― | 5.60% | 14.32% | |
67 Neutral | $7.49B | 9.02 | 81.03% | 2.60% | -6.37% | -5.06% | |
67 Neutral | $1.36B | 16.13 | 8.35% | 0.65% | -9.45% | -20.88% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $1.58B | 16.17 | 21.83% | ― | 11.79% | -13.03% | |
60 Neutral | $948.71M | 20.16 | 23.64% | 0.97% | 10.50% | -3.09% | |
50 Neutral | $158.60M | -1.56 | -49.24% | 6.74% | -13.38% | 9.50% |
* Industrials Sector Average
BAH
Booz Allen
62.45
-45.08
-41.92%
CRAI
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146.79
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FCN
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153.59
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HURN
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97.16
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-29.91%
ICFI
Icf International
74.99
-12.76
-14.54%
RGP
Resources Connection
4.62
-0.96
-17.14%
Booz Allen Corporate Events
Business Operations and StrategyM&A Transactions
Booz Allen to Acquire Ultra I&C Mission Solutions
Positive
Jun 22, 2026
On June 19, 2026, Booz Allen Hamilton Inc. agreed to acquire Ultra IC Mission Solutions, a defense technology business owned by Cobham Ultra Group, for $720 million, with closing targeted for the second quarter of Booz Allen’s fiscal 2027. U...
Business Operations and StrategyFinancial Disclosures
Booz Allen Posts Q4 Results With Strong Profitability
Positive
May 22, 2026
On May 22, 2026, Booz Allen reported fourth-quarter fiscal 2026 revenue of $2.8 billion, down 6.4% year over year, while net income rose 6.2% to $205 million and adjusted diluted EPS climbed 10.6%. The quarter closed with a record $38 billion back...
Business Operations and StrategyExecutive/Board Changes
Booz Allen Adds Ryan Nolan to Board, Audit Committee
Positive
May 12, 2026
On May 7, 2026, Booz Allen Hamilton’s board voted to expand its membership from 12 to 13 directors and appointed Ryan P. Nolan to the board, effective June 1, 2026, with his term running until the 2026 annual stockholders’ meeting. Nol...
Business Operations and StrategyExecutive/Board Changes
Booz Allen Announces New CFO and Leadership Changes
Positive
Apr 27, 2026
On April 21, 2026, Booz Allen Hamilton’s board approved a series of senior leadership changes intended to bolster its standing as an advanced technology provider to U.S. federal and global commercial markets. Effective May 4, 2026, the compa...
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.