olivLaw · US equity research
Booz Allen Hamilton Holding Corporation BAH
Services-Management Consulting Services · SIC 8742 · Vertical: Services-Management Consulting Services (SIC 8742)
Booz Allen Hamilton is an advanced technology company that builds products and solutions for the U.S. federal government and commercial clients, with a focus on defense, intelligence and cybersecurity. The company operates at a time when federal budgets and procurement rules are changing, and its fiscal 2026 revenue reached 11,217 million USD.
At the close of 04 Nov 2026, Booz Allen Hamilton Holding Corporation (BAH) stock was 88.30 USD (+1.47% on the day), with market capitalisation 10.5 bn USD, P/E 13.7 on diluted EPS of 6.46 USD over the last 12 months, dividend yield 2.63%, beta 0.27, 52-week range 59.71–102.23 USD. Latest reported quarter (Q2 2027): revenue of 2.8 bn USD (−3.9% YoY), net income of 181.0 m USD (+3.4% YoY), diluted EPS 1.50 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 75.4
- overbought (≥ 70)
- Bollinger (20, 2)
- 67.24 – 90.82
- in the upper half of the band · %B 0.89 · band width 29.8%
- SMA 50 / 200
- 75.88 / 76.42
- mixed trend
- MACD (12, 26, 9)
- 3.88 / 2.69
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +28.7% | −1.1% | +29.8 pp | — |
| 3 months | +22.8% | −0.5% | +23.2 pp | — |
| 6 months | +15.8% | +4.4% | +11.4 pp | — |
| Year to date | +4.7% | +12.3% | −7.6 pp | — |
| 1 year | +3.3% | +13.5% | −10.2 pp | −28.1% |
| 3 years | −28.2% | +76.4% | −104.6 pp | −26.6% |
| 5 years | +1.7% | +63.7% | −61.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2027 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.9 bn | 3.0 bn | 2.9 bn | 2.9 bn | 2.6 bn | 2.8 bn | 2.8 bn | 2.8 bn |
| Cost of revenue | 1.3 bn | 1.4 bn | 1.4 bn | 1.3 bn | 1.3 bn | 1.3 bn | 1.3 bn | 1.3 bn |
| Operating income | 291.0 m | 275.0 m | 257.0 m | 283.0 m | 230.0 m | 263.0 m | 279.0 m | 245.0 m |
| Depreciation & amortisation | 40.0 m | 42.0 m | 40.0 m | 41.0 m | 40.0 m | 42.0 m | 45.0 m | 51.0 m |
| Interest expense | 45.6 m | 47.4 m | — | — | — | — | — | — |
| Pre-tax income | 248.0 m | 244.0 m | 216.0 m | 233.0 m | 187.0 m | 226.0 m | 251.0 m | 199.0 m |
| Income tax | 61.0 m | 51.0 m | -55.0 m | 58.0 m | -13.0 m | 21.0 m | 53.0 m | 18.0 m |
| Net income | 187.0 m | 193.0 m | 271.0 m | 175.0 m | 200.0 m | 205.0 m | 198.0 m | 181.0 m |
| Diluted EPS | 1.45 | 1.53 ≈ | 2.16 | 1.42 | 1.63 | 1.70 ≈ | 1.63 | 1.50 |
| Operating cash flow | 151.0 m ≈ | 219.0 m | 119.0 m | 421.0 m ≈ | 261.0 m ≈ | 240.0 m | 281.0 m | 294.0 m ≈ |
| Capex | 17.0 m ≈ | 25.0 m | 23.0 m | 26.0 m ≈ | 13.0 m ≈ | 28.0 m | 20.0 m | 31.0 m ≈ |
| Dividends paid | 65.0 m ≈ | 70.0 m | 70.0 m | 68.0 m ≈ | 67.0 m ≈ | 71.0 m | 73.0 m | 72.0 m ≈ |
| Share repurchases | 149.0 m ≈ | 315.0 m | 181.0 m | 214.0 m ≈ | 126.0 m ≈ | 77.0 m | 72.0 m | 98.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 13 percentile of its own 40-quarter history (min 9.5, median 20.9, max 50.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 6.7 bn | 7.5 bn | 7.9 bn | 8.4 bn | 9.3 bn | 10.7 bn | 12.0 bn | 11.2 bn |
| Revenue YoY | +8.7% | +11.3% | +5.3% | +6.4% | +10.7% | +15.2% | +12.4% | −6.4% |
| Net income | 418.5 m | 482.6 m | 609.0 m | 466.7 m | 272.0 m | 606.0 m | 935.0 m | 851.0 m |
| Net income YoY | +38.7% | +15.3% | +26.2% | −23.4% | −41.7% | +122.8% | +54.3% | −9.0% |
| Diluted EPS | 2.91 | 3.41 | 4.37 | 3.44 | 2.03 | 4.59 | 7.25 | 6.90 |
| Diluted EPS YoY | +43.3% | +17.2% | +28.2% | −21.3% | −41.0% | +126.1% | +58.0% | −4.8% |
| net % | 6.2% | 6.5% | 7.7% | 5.6% | 2.9% | 5.7% | 7.8% | 7.6% |
| Free cash flow | 404.9 m | 423.3 m | 631.5 m | 656.6 m | 527.0 m | 192.0 m | 911.0 m | 951.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 728.0 m USD
- Financial debt
- 3.9 bn USD
- Net debt
- 3.2 bn USD
- Equity
- 1.1 bn USD
- Total assets
- 7.1 bn USD
- Debt / equity
- 3.57x
- Current ratio
- 1.78x
- ROE
- 80.7%
- ROA
- 11.8%
- FCF margin
- 8.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 7.9 bn | 8.4 bn | 9.3 bn | 10.7 bn | 12.0 bn | 11.2 bn | SEC (XBRL)· 22 May 2026verified |
| Cost of revenue | 3.7 bn | 3.9 bn | 4.3 bn | 4.9 bn | 5.4 bn | 5.3 bn | SEC (XBRL)· 22 May 2026verified |
| Gross profit | 4.2 bn ≈ | 4.5 bn ≈ | 5.0 bn ≈ | 5.7 bn ≈ | 6.6 bn ≈ | 5.9 bn ≈ | SEC (XBRL)· 22 May 2026derived |
| Operating income | 754.4 m | 685.2 m | 447.0 m | 1.0 bn | 1.4 bn | 1.0 bn | SEC (XBRL)· 22 May 2026verified |
| Depreciation & amortisation | 84.3 m | 145.7 m | 165.0 m | 164.0 m | 165.0 m | 163.0 m | SEC (XBRL)· 22 May 2026verified |
| EBITDA | 838.7 m ≈ | 830.9 m ≈ | 612.0 m ≈ | 1.2 bn ≈ | 1.5 bn ≈ | 1.2 bn ≈ | SEC (XBRL)· 22 May 2026derived |
| Interest expense | 81.3 m | 92.4 m | 119.9 m | 172.9 m | 186.0 m | 212.0 m | SEC (XBRL)· 22 May 2026verified |
| Pre-tax income | 662.4 m | 604.0 m | 368.0 m | 854.0 m | 1.2 bn | 862.0 m | SEC (XBRL)· 22 May 2026verified |
| Income tax | 53.5 m | 137.5 m | 97.0 m | 248.0 m | 284.0 m | 11.0 m | SEC (XBRL)· 22 May 2026verified |
| Net income | 609.0 m | 466.7 m | 272.0 m | 606.0 m | 935.0 m | 851.0 m | SEC (XBRL)· 22 May 2026verified |
| Diluted EPS | 4.37 | 3.44 | 2.03 | 4.59 | 7.25 | 6.90 | SEC (XBRL)· 22 May 2026verified |
| Weighted average diluted shares | 138.7 m | 134.9 m | 132.7 m | 130.8 m | 128.3 m | 122.4 m | SEC (XBRL)· 22 May 2026verified |
| Dividend per share | 1.30 | 1.54 | 1.76 | 1.92 | 2.08 | 2.24 | SEC (XBRL)· 22 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 991.0 m | 695.9 m | 404.9 m | 554.0 m | 885.0 m | 728.0 m | SEC (XBRL)· 22 May 2026verified |
| Receivables | 1.4 bn | 1.6 bn | 1.8 bn | 2.0 bn | 2.3 bn | 2.1 bn | SEC (XBRL)· 22 May 2026verified |
| Current assets | 2.6 bn | 2.4 bn | 2.3 bn | 2.7 bn | 3.3 bn | 3.0 bn | SEC (XBRL)· 22 May 2026verified |
| Property, plant & equipment, net | 204.6 m | 202.2 m | 195.2 m | 188.0 m | 177.0 m | 171.0 m | SEC (XBRL)· 22 May 2026verified |
| Goodwill | 1.6 bn | 2.0 bn | 2.3 bn | 2.3 bn | 2.4 bn | 2.4 bn | SEC (XBRL)· 22 May 2026verified |
| Intangibles (excl. goodwill) | 307.1 m | 646.7 m | 685.6 m | 601.0 m | 563.0 m | 509.0 m | SEC (XBRL)· 22 May 2026verified |
| Total assets | 5.5 bn | 6.0 bn | 6.6 bn | 6.6 bn | 7.3 bn | 7.1 bn | SEC (XBRL)· 22 May 2026verified |
| Accounts payable | 667.0 m | 902.6 m | 1.3 bn | 1.1 bn | 987.0 m | 909.0 m | SEC (XBRL)· 22 May 2026verified |
| Short-term debt | 77.9 m | 68.4 m | 41.3 m | 62.0 m | 83.0 m | 19.0 m | SEC (XBRL)· 22 May 2026verified |
| Long-term debt | 2.3 bn | 2.7 bn | 2.8 bn | 3.4 bn | 3.9 bn | 3.9 bn | SEC (XBRL)· 22 May 2026verified |
| Current liabilities | 1.3 bn | 1.5 bn | 1.9 bn | 1.7 bn | 1.8 bn | 1.7 bn | SEC (XBRL)· 22 May 2026verified |
| Total liabilities | 4.4 bn | 5.0 bn | 5.6 bn | 5.5 bn | 6.3 bn | 6.0 bn | SEC (XBRL)· 22 May 2026verified |
| Equity | 1.1 bn | 1.0 bn | 992.0 m | 1.0 bn | 1.0 bn | 1.1 bn | SEC (XBRL)· 22 May 2026verified |
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 718.7 m | 736.5 m | 603.0 m | 259.0 m | 1.0 bn | 1.0 bn | SEC (XBRL)· 22 May 2026verified |
| Capex | 87.2 m | 80.0 m | 76.0 m | 67.0 m | 98.0 m | 90.0 m | SEC (XBRL)· 22 May 2026verified |
| Free cash flow | 631.5 m ≈ | 656.6 m ≈ | 527.0 m ≈ | 192.0 m ≈ | 911.0 m ≈ | 951.0 m ≈ | SEC (XBRL)· 22 May 2026derived |
| Investing cash flow | -158.3 m | -867.7 m | -468.0 m | -91.0 m | -218.0 m | -300.0 m | SEC (XBRL)· 22 May 2026verified |
| Financing cash flow | -311.3 m | -163.8 m | -426.0 m | -19.0 m | -460.0 m | -898.0 m | SEC (XBRL)· 22 May 2026verified |
| Dividends paid | 181.1 m | 209.1 m | 236.0 m | 254.0 m | 268.0 m | 276.0 m | SEC (XBRL)· 22 May 2026verified |
| Share repurchases | 313.4 m | 418.9 m | 224.0 m | 404.0 m | 812.0 m | 598.0 m | SEC (XBRL)· 22 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 75 / 100
A scoring methodology on indicators and valuation, not investment advice.
score >= 65 · margin_of_safety >= 0.15 · agreement in ['high', 'medium']
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 10.5 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation84
- Returns94
- Quality93
- Balance sheet30
- Growth78
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 29.44 – 229.73 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)124.04 – 229.73 (Mid 162.95)WACC 8.2% · starting FCFF 1.2 bn USD · terminal value share of EV 77%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -13.1%
- Peers: EV/EBITDA86.13 – 125.13 (Mid 120.33)9 companies used · median multiple 15.4x · quartiles 12.0x – 15.8xACCS, ASTH, BWMN, FCN, HCKT, HURN, ICFI, III, ONT
- Peers: P/E86.48 – 161.07 (Mid 129.60)11 companies used · median multiple 20.1x · quartiles 13.4x – 24.9xAERT, EXPO, FCN, G, HCKT, HURN, ICFI, III, RMR, TSSI, ZTG
- Dividend discount (DDM)29.44 – 39.59 (Mid 33.76)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Attractive profile · Score 75/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 19.5% | 94 (vs peers) | 10% |
| Net margin · Quality | 7.1% | 82 (vs peers) | 6% |
| FCF conversion · Quality | 125.5% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 6.6% | 55 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | 50.4% | 100 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 3.4x | 9 (vs peers) | 10% |
| Interest coverage · Balance sheet | 4.8x | 51 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.4x | 53 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 13.7x | 82 (vs peers) | 10% |
| EV/EBITDA · Valuation | 12.2x | 73 (vs peers) | 10% |
| FCF yield · Valuation | 9.4% | 100 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 6.3% | 89 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 28.8% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet30/100 · 3/3 factors with a value
- Growth78/100 · 2/2 factors with a value
- Quality93/100 · 3/3 factors with a value
- Returns94/100 · 2/2 factors with a value
- Valuation84/100 · 3/3 factors with a value
Memo
Booz Allen Hamilton Holding Corporation (BAH). Latest full fiscal year: 2026; data up to 2026-09-30.
Figures computed from the financial statements: revenue 11.2 bn USD in 2026; YoY growth -6.4%; net margin 7.1%; ROE 70.0%; net debt/EBITDA 3.4x.
The estimated value range is 86.31–143.10 USD per share (median of 4 methods, agreement: medium); assumptions are illustrative. Against the central value of 124.97 USD, the price of 88.30 USD leaves a potential of 41.5% (value / price − 1) and a margin of safety of 29.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 75/100, methodological classification: attractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 19.5%
- Net margin: 7.1%
- FCF conversion: 125.5%
- EPS CAGR 3Y: 50.4%
- P/E (TTM): 13.7x
- EV/EBITDA: 12.2x
- FCF yield: 9.4%
- Shareholder yield (distributions): 6.3%
- Payout ratio (FCF): 28.8%
What contradicts it
- Net debt / EBITDA: 3.4x
Versus the vertical median
Services-Management Consulting Services (SIC 8742) · same industry (4-digit SIC) · compared with 33 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BAHBooz Allen Hamilton Holding Corporation | 10.5 bn | 13.7 | 70.0% | 7.1% | −6.4% | +3% / −28% |
| GGenpact Limited | 6.9 bn | 12.1 | 22.4% | 11.1% | +6.6% | −7% / +20% |
| FCNFti Consulting, Inc | 5.4 bn | 24.7 | 15.2% | 5.9% | +2.4% | +22% / −10% |
| EXPOExponent, Inc. | 4.2 bn | 39.2 | 31.2% | 17.7% | +4.2% | +21% / +14% |
| HURNHuron Consulting Group Inc. | 2.7 bn | 25.8 | 25.5% | 6.1% | +11.7% | +5% / +66% |
| ASTHAstrana Health, Inc. | 2.2 bn | 48.3 | 5.1% | 1.1% | +56.4% | +72% / +19% |
| ICFIICF International, Inc. | 1.7 bn | 20.1 | 8.6% | 4.9% | −7.3% | +24% / −31% |
| BWMNBowman Consulting Group Ltd. | 744.2 m | 105.3 | 2.9% | 1.4% | +14.9% | +19% / +39% |
| ONTOnterris, Inc. | 566.4 m | — | -2.5% | -1.4% | +19.3% | −37% / −48% |
| PPHCPublic Policy Holding Company, Inc. | 381.3 m | — | -39.5% | -18.9% | +24.7% | unavailable / unavailable |
| HCKTHackett Group, Inc. | 329.4 m | 19.0 | 20.7% | 6.3% | −2.6% | −28% / −40% |
| IIIInformation Services Group Inc. | 289.5 m | 25.2 | 12.7% | 4.7% | −1.2% | +13% / +46% |
| AERTAeries Technology, Inc. | 282.0 m | 20.9 | — | 3.6% | −0.3% | +35% / −68% |
| RMRRmr Group Inc. | 250.5 m | 12.6 | 8.7% | 3.1% | −22.0% | +10% / −30% |
| SUPXSuperx Ai Technology Limited | 209.8 m | — | -101.8% | -527.7% | +1,878.6% | −84% / unavailable |
| TSSITss, Inc. | 193.3 m | 14.1 | 32.0% | 7.4% | +65.9% | −29% / +1,976% |
| GRNQGreenpro Capital Corp. | 122.4 m | — | -26.8% | -169.6% | −40.7% | −57% / −19% |
| AUCAtif Holdings Limited | 109.4 m | — | -90.5% | -723.7% | −74.7% | −12% / −70% |
| ROMARoma Green Finance Limited | 101.0 m | — | -44.2% | -287.8% | −22.2% | +138% / unavailable |
| RTBRTB Digital, INC. | 92.6 m | — | -141.9% | -198.5% | −38.7% | −49% / −94% |
| MHHMastech Digital, Inc. | 74.9 m | 71.0 | 1.3% | 0.7% | −3.8% | −21% / −27% |
| EGGEnigmatig Ltd | 64.8 m | 268.0 | 6.3% | 12.6% | +12.2% | +40% / unavailable |
| CTMCastellum, Inc. | 46.4 m | — | -6.8% | -4.1% | +18.1% | −53% / +123% |
| ACCLAcco Group Holdings Limited | 34.9 m | 119.0 | 7.0% | 5.6% | +5.8% | −38% / unavailable |
| INTJIntelligent Group Limited | 33.5 m | — | -23.5% | -98.3% | −9.0% | −72% / unavailable |
1- and 3-year price returns: for BAH from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 54.56 Total return -36% · Per year -36% | 96.35 Total return 12% · Per year 12% | 145.01 Total return 68% · Per year 68% |
| 3 years | 55.21 Total return -31% · Per year -12% | 109.50 Total return 33% · Per year 10% | 180.61 Total return 116% · Per year 29% |
| 5 years | 55.87 Total return -26% · Per year -6% | 124.44 Total return 57% · Per year 9% | 224.95 Total return 177% · Per year 23% |
- Exit P/E± 27.37
- Net margin± 19.16
- Annual revenue growth± 15.42
- Annual dilution± 1.61
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Booz Allen Hamilton is an advanced technology company that builds products and solutions for the U.S. federal government and commercial clients, with a focus on defense, intelligence and cybersecurity. The company operates at a time when federal budgets and procurement rules are changing, and its fiscal 2026 revenue reached 11,217 million USD 1.
SWOT
Strengths
- The company has a strong position in artificial intelligence, cybersecurity and defense technology, supported by a highly credentialed workforce and a large share of staff holding security clearances 1.
- A high win rate on re-competed contracts shows client loyalty and the quality of past performance 1.
- Partnerships with technology companies and venture investments could accelerate the delivery of proprietary products 1.
Weaknesses
- Near-total dependence on government contracts makes the company vulnerable to budget changes and spending cuts 1.
- Revenue concentrated in a few contract vehicles can create high exposure if a major contract is reduced or lost 1.
- Slow procurement and delayed payments can affect cash flow and resource planning 1.
Opportunities
- Simpler procurement and a preference for fixed-price contracts could open new opportunities for technology solutions 2.
- Demand for AI, cyber and defense technology could grow if the government keeps prioritising modernisation 3.
- Strategic acquisitions could accelerate entry into new markets and strengthen the company's position 1.
Threats
Risks
- Dependence on the U.S. governmenthigh
Almost all revenue comes from government contracts, so any deterioration in agency relationships could quickly reduce revenue and profit 1.
- Competition for contractshigh
Losing bids or delays caused by competitor protests could affect revenue and profitability 1.
- Budget and government fundingmedium
Delays in budget approval or government shutdowns could lead to contract reductions or postponements 2.
- Limits on shareholder distributionsmedium
Proposed laws and executive orders on dividends and buybacks could restrict the company's capital return policy 2.
- Cybersecurity and reputationmedium
Cyberattacks or incidents involving sensitive information could damage client trust and access to contracts 1.
Investment thesis
What would need to be true (bull case)
- If investments in AI and cybersecurity turn into larger contracts, the company could sustain revenue growth over the medium term 3.
- Strong win rates and a growing backlog suggest that client demand remains solid 3.
- Simpler procurement and more fixed-price contracts could improve margins in some situations 2.
What would break the thesis
What to watch
- Revenue trend and guidance for fiscal 2027Q3 2027
- Final FAR rules and small business size standards2027
- Adoption of laws on dividends and buybacks for defense contractorsnext 10-K
- Backlog trend and book-to-bill ratioQ3 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Booz Allen Hamilton Holding Corporation describes its activity as building technology products and solutions for government and business, based on a transformation that began after 2001 toward national security missions 1. Its operating model works as a single profit and loss center and deploys multidisciplinary teams for each client 1. The company reported that about 84% of revenue came from active task orders under IDIQ contract vehicles 1.
Booz Allen aims to accelerate the shift toward proprietary products, partnerships with technology companies and investments in startups, through its VoLT strategy of velocity, leadership and technology 1. Clients include all six branches of the U.S. military, the intelligence community and several civil agencies 1.
In the second quarter of fiscal 2027, the company reported revenue of 2,778 million USD and a book-to-bill ratio of 1.5x, while total backlog rose 1.9% year over year to 41 billion USD 3.
Segments
Defense and defense technology
The defense technology business builds products from first prototype to mission deployment, including autonomous systems, command and control and tactical solutions, supported by more than 20 manufacturing centers and R&D labs 1.
Cybersecurity and artificial intelligence
The cyber business offers defense solutions and the AI-native Vellox suite, and the company presents itself as the federal government's largest AI provider, with hundreds of active projects 1.
Civil and commercial clients
Civil work covers health, homeland security, financial services and energy, and the Department of Veterans Affairs was the largest civil client in fiscal 2026 1.
Market context
The company's main market is U.S. public procurement, and most revenue comes from contracts with defense, intelligence and civil federal agencies 1. Procurement runs through definite contracts and IDIQ vehicles, and Booz Allen won 57% of new contracts and 89% of re-competed contracts in fiscal 2026 1.
The commercial and non-government cybersecurity markets are smaller, but the company treats them as growth areas for its technology products 1.
Trends
- Federal procurement reformmixed
Executive orders and the FAR reform could simplify procurement and favour commercial solutions and fixed-price contracts, which could bring opportunities, although the impact remains uncertain 2.
- Slower procurement processesheadwind
Reduced agency staffing and slower processes have led to delays in contract awards and invoice payments, which affected financial results 1.
- Budget uncertaintyheadwind
Government funding remains uncertain, and continuing resolutions could extend periods without full budgets, with effects on the company's business 2.
- Investment in AI and cybertailwind
Demand for artificial intelligence, cybersecurity and defense technology could support long-term growth if the company's investments turn into contracts 3.
Competitive position
Booz Allen competes with large software companies, global technology providers, government contractors, systems integrators and startups, and in many cases it collaborates with the same firms 1. Competitive criteria include innovation, technical expertise, cleared personnel and past performance 1.
The main risk is losing bids or re-competed contracts, which could be amplified by new rules that favour new entrants or non-traditional contractors 2.
- Government technology services contractors
Companies that supply technology services to the federal government and compete directly for consulting and technology contracts 1.
- Large defense contractors
Companies that deliver both products and technology services to the government and can compete for the same defense programs 1.
- Large software and technology companies
Global software and cloud providers that can offer competing solutions for digitalization and AI 1.
- Technology startups
Small, agile companies that can win innovation contracts and change competitive dynamics in the market 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- AI Agents Navigate Unfamiliar OT Systems and Move Equipment in Minutes, Booz Allen FindsSecurityWeek · 14 Oct 2026 · EN
- Rising Commoditization Threatens Booz Allen Hamilton Holding Corporation’s (BAZ) MarginsYahoo Finance — News · 17 Sept 2026 · EN
- Palantir, Nvidia, Booz Allen restrict Anthropic and OpenAI modelsYahoo Finance — News · 14 Sept 2026 · EN
- Boeing Lands $131 Bil F-15 Fighter Jet Contract, Analyst Lifts Booz Allen TargetsYahoo Finance — News · 25 Aug 2026 · EN
The latest news item in our archive is from 14 Oct 2026; the newest SEC filing is from 23 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report23 Oct 2026
- Current report23 Oct 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report24 Aug 2026Other events · Financial statements and exhibits
- Current report04 Aug 2026Material agreement · Creation of a direct financial obligation · Other events · Financial statements and exhibits
- Current report24 Jul 2026Shareholder vote · Financial statements and exhibits
- Quarterly report24 Jul 2026
- Current report24 Jul 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report22 Jun 2026Material agreement · Regulation FD disclosure · Financial statements and exhibits
- Proxy statement11 Jun 2026
- Annual report22 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2026-03-31 · SEC / Booz Allen Hamilton Holding Corporation · 22 May 2026
- [2] Form 10-Q, quarter ended 2026-09-30 · SEC / Booz Allen Hamilton Holding Corporation · 23 Oct 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Booz Allen Hamilton Holding Corporation · 23 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.