Booz Allen (BAH) AI Stock Analysis

• Market Cap: $10.37B
• Dividend Yield: 2.15%
• Average Volume (3M): 2.32M
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.55
• 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: 3,728,588
• 30 Day Avg. Volume: 2,323,611
• 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: 1.51
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 2.50
• Enterprise Value/Ebitda: 13.12
• 1Y Price Target: $100.50
• Price Target Upside: 16.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 5.67
• Revenue Forecast (FY): $11.48B

• Rating: 62 Neutral
• Price Target: $97.00 ▲(12.00% Upside)

Booz Allen's overall stock score reflects strong operational efficiency and a reasonable valuation, but is tempered by bearish technical indicators and mixed earnings call sentiment. The company's strategic focus on national security and advanced technologies is promising, but challenges in the Civil business and revenue decline need addressing.

Positive Factors

National Security Segment Growth

The national security segment's robust growth, with significant contract wins, strengthens Booz Allen's market position and ensures stable revenue streams from government contracts.

Cyber and AI Leadership

Leadership in cyber and AI technologies positions Booz Allen as a key player in advanced tech solutions, enhancing its competitive edge and long-term growth prospects.

Strong Balance Sheet

A strong balance sheet with significant cash reserves and reduced leverage provides financial stability and flexibility for strategic investments and growth initiatives.

Negative Factors

Civil Business Challenges

Challenges in the Civil business, including procurement delays and pricing pressures, could hinder overall revenue growth and require strategic adjustments to mitigate impact.

Lowered Financial Guidance

Lowered financial guidance reflects slower-than-expected business reacceleration, potentially impacting investor confidence and necessitating strategic realignment to achieve growth targets.

Decline in Free Cash Flow Growth

A decline in free cash flow growth indicates potential challenges in cash generation, which could affect Booz Allen's ability to fund operations and strategic initiatives without increasing debt.

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 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.

How the Company Makes Money

Booz Allen generates revenue primarily through consulting services provided to government and commercial clients. The company operates on a fee-for-service model, where it charges clients based on hours worked, project milestones, or retainer agreements. Key revenue streams include contracts with federal government agencies, particularly in defense and intelligence sectors, which account for a significant portion of its income. Additionally, Booz Allen benefits from long-term contracts that provide stability and predictability in revenue. The firm also engages in partnerships with technology firms and academic institutions to enhance its service offerings and expand its market reach, further contributing to its earnings.

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	1.19B	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: 86.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 86.61 is below the 20-day moving average (MA) of 92.86, below the 50-day MA of 98.89, and below the 200-day MA of 108.70, indicating a bearish trend. The MACD of -4.34 indicates Positive momentum. The RSI at 36.05 is Neutral, neither overbought nor oversold. The STOCH value of 21.57 is Neutral, 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	75 Outperform	$1.24B	22.64	27.83%	1.06%	8.69%	34.58%
FCN	75 Outperform	$5.17B	21.28	13.30%	―	-0.95%	-10.54%
HURN	73 Outperform	$2.84B	28.09	21.20%	―	12.50%	29.40%
TRU	72 Outperform	$15.52B	37.49	9.68%	0.56%	8.30%	86.97%
ICFI	65 Neutral	$1.49B	15.20	9.88%	0.70%	-3.81%	-7.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BAH	62 Neutral	$10.37B	13.05	74.72%	2.15%	2.42%	3.05%

Booz Allen Corporate Events

Booz Allen Hamilton Earnings Call: Mixed Sentiment Amid Challenges

Booz Allen Hamilton’s recent earnings call presented a mixed sentiment, reflecting strong performance in their national security segment and advancements in technologies such as cyber and AI. However, the company faces significant challenges in its Civil business, leading to lowered guidance and financial metrics. In response, Booz Allen is implementing cost-reduction strategies and prioritizing growth areas to drive future success.

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.

The most recent analyst rating on (BAH) stock is a Hold with a $105.00 price target. To see the full list of analyst forecasts on Booz Allen stock, see the BAH Stock Forecast page.

Booz Allen Holds Annual Stockholders Meeting, Approves Key Proposals

On July 23, 2025, Booz Allen Hamilton held its Annual Meeting of Stockholders, where several key proposals were voted on. The election of directors saw all nominees elected, with varying levels of support. Ernst & Young LLP was ratified as the independent public accounting firm for fiscal year 2026. Additionally, a non-binding advisory vote on executive compensation was approved, while a stockholder proposal did not pass. These outcomes reflect the company’s ongoing governance and strategic priorities, impacting its operational and financial oversight.

The most recent analyst rating on (BAH) stock is a Buy with a $150.00 price target. To see the full list of analyst forecasts on Booz Allen stock, see the BAH Stock Forecast page.

Booz Allen Hamilton Navigates Challenges, Eyes Growth

Booz Allen Hamilton’s recent earnings call reflects a company adeptly navigating short-term challenges while laying the groundwork for future growth. Despite facing issues like slow funding and a downturn in its Civil business, the company has achieved significant milestones in backlog, contract wins, and strategic investments. The sentiment expressed during the call suggests that Booz Allen Hamilton is well-positioned for medium- to long-term growth, buoyed by a robust book-to-bill ratio and strategic initiatives.