Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on BAH

Breaking News: Booz Allen Hamilton Holding Corporation recently received an average rating of Hold from fifteen brokerages. The ratings break down to three sell, nine hold, two buy, and one rating that was not specified. The company has not had a recent earnings release reported. Analysts from various firms including those who gave a buy rating recommend a hold or buy, while those who gave a sell rating recommend selling. Specifically analysts at firms recommend a hold.

1.c. Company Highlights

2. Booz Allen Hamilton's Q2 FY '26 Results: A Tale of Two Businesses

Booz Allen Hamilton's second-quarter fiscal year 2026 results revealed a bifurcated business performance, with the national security portfolio growing 5% year-over-year, while the civil business revenue declined 22%. Gross revenue was $2.9 billion, down 8% from the prior year, and gross bookings totaled $7.2 billion. Adjusted EBITDA was $324 million, down 11% from the prior year period, with an adjusted EBITDA margin of 11.2%. Net income was $175 million, down 55% year-over-year, and adjusted net income was $183 million, down 21%. Diluted earnings per share (EPS) was $1.42, down 53% year-over-year, and adjusted diluted EPS decreased 18% year-over-year to $1.49.

Publication Date: Oct -25

📋 Highlights
  • National vs. Civil Performance:: National security revenue grew 5% YoY (mid-single-digit FY26 guidance), while civil revenue fell 22% YoY (low-20% decline expected for FY26).
  • Financial Decline:: Q2 adjusted EBITDA dropped 11% to $324M ($1.42 EPS, -53% YoY), with FY26 revenue guidance cut to $11.3–$11.5B and EBITDA margin expectations at mid-10%.
  • Cost-Cutting Measures:: $150M in annualized cost reductions planned to offset civil market challenges, alongside $279M in shareholder returns ($208M buybacks, $68M dividends).
  • Backlog & Pipeline:: Total backlog reached $40B (+3% YoY), funded backlog surged 34% QoQ to $5B, and qualified pipeline stood at $25B for FY26’s remainder.

Segment Performance

The national security business, comprising defense and intelligence programs, is expected to grow in the mid-single-digit range for the full fiscal year, driven by opportunities in cyber, AI, and war-fighting tech. In contrast, the civil business is anticipated to decline in the low 20% range for the year, due to a challenging market and slower-than-expected procurement environment. The company's total backlog reached $40 billion, up 3% year-over-year, while funded backlog grew 34% sequentially to $5 billion.

Guidance and Outlook

Booz Allen is lowering its top and bottom-line guidance for the year, expecting revenue between $11.3 billion and $11.5 billion, and adjusted EBITDA margins in the mid-10% range. The company assumes current burn rates and trends will persist, with no material new wins required to meet the range. The funded backlog has improved, but still below last year's levels. Analysts estimate next year's revenue growth at 0.1%, indicating a challenging near-term outlook.

Valuation and Dividend

With a P/E Ratio of 13.68 and an EV/EBITDA of 9.01, the company's valuation appears reasonable. The Dividend Yield is 2.36%, providing a relatively stable source of return. Booz Allen deployed $279 million to generate value for shareholders, including $208 million in share repurchases and $68 million in quarterly dividends. The Board of Directors approved a quarterly dividend of $0.55 per share and increased the share repurchase authorization by $500 million.

Cost-Cutting and Growth Initiatives

Booz Allen has initiated cost-cutting actions, aiming to take out $150 million in annualized costs, and is focusing on growth areas, including cyber, AI, and war-fighting tech. The company expects these actions to support margin expansion and position it for long-term growth. The company prioritizes growth vectors, taking painful actions to free up costs to invest in medium- and long-term growth, with significant opportunities in the U.S. government, commercial, and with allies.

3. NewsRoom

Card image cap

Booz Allen Hamilton Holding Corporation (NYSE:BAH) Given Average Rating of “Hold” by Analysts

Dec -04

Source: defenseworld.net

Card image cap

Bahl & Gaynor Inc. Trims Stake in Booz Allen Hamilton Holding Corporation $BAH

Nov -22

Source: defenseworld.net

Card image cap

Booz Allen Secures $99 Million Contract to Install 5G Networks on U.S. Navy Ships

Nov -20

Source: businesswire.com

Card image cap

Black Creek Investment Management Inc. Boosts Stock Holdings in Booz Allen Hamilton Holding Corporation $BAH

Nov -18

Source: defenseworld.net

Card image cap

Booz Allen to Relocate Global Headquarters to Reston, Virginia

Nov -17

Source: businesswire.com

Card image cap

Best Buys Now: 3 Undervalued Stocks to Buy After Q3 Earnings

Nov -06

Source: 247wallst.com

Card image cap

Booz Allen Stock Declines 6.4% Since Fiscal Q2 Earnings

Oct -29

Source: zacks.com

Card image cap

Booz Allen Hamilton Holding Corporation $BAH Stock Position Decreased by Asset Management One Co. Ltd.

Oct -29

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.10%)

6. Segments

Defense Clients

Expected Growth: 8.5%

Booz Allen Hamilton's 8.5% growth in Defense Clients is driven by increasing demand for digital transformation, cybersecurity, and analytics services from the US Department of Defense and its agencies. The company's expertise in cloud, artificial intelligence, and machine learning also supports growth. Additionally, the ongoing modernization of defense systems and the need for cost-effective solutions contribute to the segment's expansion.

Civil Clients

Expected Growth: 7.5%

Booz Allen Hamilton's 7.5% growth with Civil Clients is driven by increasing demand for digital transformation, cybersecurity, and analytics services. The company's expertise in cloud migration, artificial intelligence, and data science also contributes to growth. Additionally, the company's strong relationships with government agencies and its ability to provide innovative solutions to complex problems further support growth in this segment.

Intelligence Clients

Expected Growth: 8.0%

Booz Allen Hamilton's Intelligence Clients segment growth of 8.0% is driven by increasing demand for digital transformation, cybersecurity, and data analytics services from US government agencies, such as the Department of Defense and Intelligence Community. Additionally, the company's investments in innovation, talent acquisition, and strategic partnerships have enabled it to capitalize on emerging trends in artificial intelligence, cloud computing, and 5G.

Global Commercial Clients

Expected Growth: 9.5%

Booz Allen Hamilton's 9.5% growth in Global Commercial Clients is driven by increasing demand for digital transformation, cybersecurity, and data analytics services. The company's expertise in AI, cloud, and IoT solutions also contributes to its growth. Additionally, strategic partnerships and acquisitions have expanded its client base and capabilities, further fueling growth.

7. Detailed Products

Digital Transformation

Booz Allen Hamilton provides digital transformation services to help clients adapt to changing market conditions, leveraging technologies such as cloud, artificial intelligence, and cybersecurity.

Cybersecurity

Booz Allen Hamilton offers cybersecurity services to protect clients from cyber threats, including risk assessments, penetration testing, and incident response.

Data Science and Analytics

Booz Allen Hamilton provides data science and analytics services to help clients make data-driven decisions, leveraging machine learning, artificial intelligence, and data visualization.

Engineering and Operations

Booz Allen Hamilton offers engineering and operations services to design, develop, and operate complex systems, including systems engineering, logistics, and supply chain management.

Consulting

Booz Allen Hamilton provides management consulting services to help clients improve organizational performance, including strategy development, change management, and organizational design.

Innovation and Prototyping

Booz Allen Hamilton offers innovation and prototyping services to help clients develop and test new ideas, using design thinking, agile development, and rapid prototyping.

8. Booz Allen Hamilton Holding Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Booz Allen Hamilton Holding Corporation operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and diversified service offerings.

Bargaining Power Of Customers

The company's customers are primarily government agencies, which have limited bargaining power due to the complexity and specialized nature of Booz Allen's services.

Bargaining Power Of Suppliers

Booz Allen Hamilton Holding Corporation has a diverse supplier base, and the company's scale and reputation give it significant bargaining power over its suppliers.

Threat Of New Entrants

The consulting industry has high barriers to entry, including significant capital requirements and the need for specialized expertise, which limits the threat of new entrants.

Intensity Of Rivalry

The consulting industry is highly competitive, with many established players competing for a limited number of contracts, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 77.66%
Debt Cost 3.95%
Equity Weight 22.34%
Equity Cost 6.58%
WACC 4.54%
Leverage 347.53%

11. Quality Control: Booz Allen Hamilton Holding Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Booz Allen Hamilton

A-Score: 5.4/10

Value: 5.2

Growth: 7.7

Quality: 7.4

Yield: 5.0

Momentum: 0.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Worthington Industries

A-Score: 5.0/10

Value: 3.6

Growth: 3.1

Quality: 5.7

Yield: 3.0

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Exponent

A-Score: 4.5/10

Value: 1.0

Growth: 5.7

Quality: 8.2

Yield: 3.0

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
ICF International

A-Score: 4.3/10

Value: 6.6

Growth: 6.6

Quality: 5.4

Yield: 1.0

Momentum: 0.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
FTI Consulting

A-Score: 4.2/10

Value: 3.4

Growth: 6.6

Quality: 6.0

Yield: 0.0

Momentum: 0.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
TransUnion

A-Score: 3.6/10

Value: 2.6

Growth: 5.8

Quality: 5.7

Yield: 0.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

88.01$

Current Price

88.01$

Potential

-0.00%

Expected Cash-Flows