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

Booz Allen Hamilton Holding Corporation faced negative drivers, including a decline in gross revenue by 10% year-over-year to $2.6 billion, mainly due to the Treasury ending IRS contracts following a data breach. This event led to a $50 million revenue and $20 million profit impact expected for the fiscal year. Additionally, the Civil segment experienced a 28% decline. Despite a record $38 billion backlog, the company trimmed its FY26 sales outlook, which likely impacted investor sentiment. Institutional investors, such as Cabot Wealth Management Inc. and Envestnet Asset Management Inc., reduced their stakes in the company.

1.c. Company Highlights

2. Booz Allen Hamilton's Q3 FY2026 Earnings: A Strong Beat

Booz Allen Hamilton Holding Corporation reported a robust third-quarter fiscal year 2026 earnings performance, with revenue in line with expectations. The company's adjusted EBITDA margin came in at 10.9%, while net income rose 7% year over year to $244 million. EPS was $1.77, significantly beating analyst estimates of $1.26. The strong EPS performance was driven by disciplined cost management and robust contract execution, with the company navigating the challenges posed by the government shutdown.

Publication Date: Feb -11

📋 Highlights
  • Cost Reduction & Margin Resilience:: Achieved 10.9% adjusted EBITDA margin despite government shutdown, with $882M cash on hand and $53B qualified pipeline (12% YoY growth).
  • Outcome-Based Contract Shift:: Secured $100M fixed-price work for Thunderdome expansion and launched Velox Reverser, accelerating cyber threat response capabilities.
  • Strategic Partnerships:: Announced collaboration with Andreessen Horowitz (a16z) to co-create commercial tech for national security, healthcare, and public safety.
  • FY2026 Financial Outlook:: Revenue guidance $11.3–$11.4B, adjusted EBITDA $1.195–$1.215B, and free cash flow $825M–$900M, with dividend of $0.59/share approved.

Financial Performance and Guidance

The company's financial performance was characterized by a strong contract execution and disciplined cost management, which helped drive profitability in the quarter. For fiscal year 2026, the company expects revenue to be between $11.3 billion and $11.4 billion, with adjusted EBITDA ranging from $1.195 billion to $1.215 billion. Adjusted EPS is expected to be between $5.95 to $6.15 per share, with free cash flow between $825 million and $900 million. The guidance suggests a stable outlook, with the company poised to benefit from its diversified portfolio and growth vectors.

Valuation and Growth Prospects

Booz Allen Hamilton's valuation multiples suggest a reasonable pricing, with a P/E Ratio of 13.25 and an EV/EBITDA of 9.26. The company's ROE is 81.85%, indicating a strong return on equity. The dividend yield is 2.45%, providing a stable income stream. Analysts estimate next year's revenue growth at 2.0%, which is relatively modest. However, the company's growth vectors, including cyber, AI, and national security, are expected to drive future growth. The company's strong balance sheet and focus on strategic acquisitions position it well for future opportunities.

Growth Vectors and Strategic Focus

The company is pursuing growth opportunities in areas such as cyber, AI, and national security, with a focus on outcome-based contracting and product sales. The partnership with Andreessen Horowitz (a16z) to co-create unique commercial tech for national security and other government missions is a significant development. The company's civil business is expected to reignite, with a pipeline growing double digits in both national security and civil. The company's focus on proven growth vectors and strategic investments is expected to drive long-term growth.

3. NewsRoom

Card image cap

Alberta Investment Management Corp Buys 30,300 Shares of Booz Allen Hamilton Holding Corporation $BAH

Feb -20

Source: defenseworld.net

Card image cap

Sverica Capital Management Announces Sale of Defy Security to Booz Allen Hamilton

Feb -17

Source: businesswire.com

Card image cap

Booz Allen to Expand Global Commercial Business with Acquisition of Defy Security

Feb -17

Source: businesswire.com

Card image cap

Booz Allen Hamilton Holding Corporation $BAH Shares Acquired by Illinois Municipal Retirement Fund

Feb -14

Source: defenseworld.net

Card image cap

Versor Investments LP Invests $1.14 Million in Booz Allen Hamilton Holding Corporation $BAH

Feb -10

Source: defenseworld.net

Card image cap

Envestnet Asset Management Inc. Reduces Stake in Booz Allen Hamilton Holding Corporation $BAH

Feb -09

Source: defenseworld.net

Card image cap

Booz Allen Hamilton Holding Corporation $BAH Stake Raised by National Pension Service

Feb -04

Source: defenseworld.net

Card image cap

Defense Tech Stocks Move Higher as $15 Billion Cyber Budget Targets Quantum Threats

Jan -29

Source: prnewswire.com

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: 5.5

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: 5.3/10

Value: 3.9

Growth: 3.1

Quality: 5.9

Yield: 4.0

Momentum: 8.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Exponent

A-Score: 4.7/10

Value: 1.2

Growth: 5.7

Quality: 8.2

Yield: 3.0

Momentum: 1.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
ICF International

A-Score: 4.4/10

Value: 6.3

Growth: 6.4

Quality: 5.4

Yield: 1.0

Momentum: 0.5

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
FTI Consulting

A-Score: 4.3/10

Value: 3.5

Growth: 6.4

Quality: 6.0

Yield: 0.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
TransUnion

A-Score: 3.9/10

Value: 2.4

Growth: 5.9

Quality: 5.5

Yield: 0.0

Momentum: 4.5

Volatility: 5.3

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

77.21$

Current Price

77.21$

Potential

-0.00%

Expected Cash-Flows