Booz Allen Hamilton Holding Corporation (BAH) AI Stock Analysis

NYSE: BAHAI research summary: business, growth, valuation, analysts, bull and bear case.

BAH AI stock analysis summary

AI Research

Booz Allen Hamilton Holding Corporation (BAH) is an engineering, cyber services, and management consulting provider with 30,900 employees. In FY2026, the company generated $11.22B in revenue and $851.0M in net income, while delivering free cash flow of $951.0M. Over the trailing twelve months, revenue reached $11.09B with an operating margin of 10.0%.

Market cap
$8.93B
Revenue (TTM)
$11.09B
P/E
11.7x
fwd 16.5x
1Y return
-21.4%
S&P 500 16.8%
Avg. target
$84.38
13.6% vs last close

Bull case

  • Booz Allen generated $951.0M in free cash flow during FY2026, supporting $598.0M in share buybacks.
  • The stock trades at a trailing P/E of 11.7x, compared to the median of 24.8x for US-listed Industrials peers.
  • The company offers a 3.18% dividend yield backed by a 33.9% payout ratio and a 12.2% 5-year annualized dividend growth rate.

Bear case

  • In FY2026, revenue fell 6.4% to $11.22B, and gross margin dropped sharply to 20.9% from 54.8% in FY2025.
  • For the quarter ended June 30, 2026, quarterly earnings fell 24.5% year-over-year alongside a 4.2% drop in revenue.
  • The balance sheet carries total debt of $4.16B against cash of $540.0M, resulting in a debt-to-equity ratio of 3.46.

What Booz Allen Hamilton does

Headquartered in McLean, Virginia, Booz Allen Hamilton Holding Corporation provides management and technology consulting services, digital solutions, and cyber services. Founded in 1914, the company serves governments, corporations, and nonprofit organizations in the United States and internationally. Its capabilities cover business strategy, human capital, operational improvements, and analytics specializing in artificial intelligence, machine learning, deep learning, and data science. Booz Allen also delivers solutions in automation, decision analytics, and quantum computing. In addition, the firm offers engineering services for designing and modernizing physical systems across defense, aerospace, healthcare, and energy, alongside cyber risk management solutions.

Growth and profitability

Booz Allen Hamilton increased revenue from $8.36B in FY2022 to $11.98B in FY2025 before revenue declined 6.4% to $11.22B in FY2026. Over the five years from FY2021 to FY2026, revenue posted a compound annual growth rate of 7.4%. Gross margin dropped from 54.8% in FY2025 to 20.9% in FY2026, while operating margin moved from 11.4% to 9.8%. Net income was $851.0M in FY2026, down from $935.0M in FY2025, though EPS rose to $6.52. For the latest quarter ended June 30, 2026, quarterly revenue fell 4.2% year-over-year and quarterly earnings declined 24.5% year-over-year, leaving trailing twelve month revenue at $11.09B with a profit margin of 7.0%.

BAH income statement →

Balance sheet and cash flow

As of June 30, 2026, Booz Allen Hamilton held $540.0M in cash and short-term investments against $4.16B in total debt, resulting in net debt of $3.62B. Shareholders' equity stood at $1.20B, yielding a debt-to-equity ratio of 3.46 and a current ratio of 1.59. Total assets reached $7.61B. In FY2026, the company produced operating cash flow of $1.04B and free cash flow of $951.0M. Capital expenditures totaled $90.0M, while cash returned to shareholders included $598.0M in share buybacks and $276.0M in dividends paid.

BAH balance sheet →

Valuation and performance

At a last close of $74.26 on October 16, 2026, Booz Allen Hamilton carried a market cap of $8.93B and an enterprise value of $12.72B. The stock traded at a trailing P/E of 11.7x and a forward P/E of 16.5x, below the median of its US-listed Industrials peers of 24.8x and 17.2x, respectively. Its enterprise value-to-EBITDA multiple was 10.0x versus the peer median of 13.9x, and its price-to-sales was 0.8x against 1.5x. Over the past year, the stock declined 21.4%, trailing the S&P 500 return of 16.8%.

BAH key metrics →

BAH dividend

Booz Allen Hamilton pays a quarterly dividend with an annualized forward payout of $2.36, representing a dividend yield of 3.18%. The dividend payout ratio is 33.9%, and the company has paid dividends for 15 consecutive years. Over the past five years, dividend growth annualized at 12.2%. The last ex-dividend date was August 14, 2026.

BAH dividend history →

What analysts expect

Wall Street coverage consists of 4 Strong Buy, 0 Buy, 8 Hold, 2 Sell, and 1 Strong Sell ratings. The mean price target is $84.38, which is 13.6% above the last close of $74.26. For the current fiscal year ending March 31, 2027, consensus estimates project revenue of $11.42B and EPS of $6.35, representing an EPS decline of 2.5%. Booz Allen beat EPS estimates in 3 of the last 4 quarters. The next earnings date is October 23, 2026.

BAH forecast and price target →

Key risks and what to watch

  • Net debt of $3.62B and a debt-to-equity ratio of 3.46 could pressure financial flexibility if cash flow slows.
  • Consensus estimates anticipate EPS to decline 2.5% to $6.35 for the fiscal year ending March 31, 2027.
  • The stock's 1-year return of -21.4% has lagged the S&P 500 return of 16.8% by a wide margin.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this BAH AI stock analysis

This page is an AI-written research summary of Booz Allen Hamilton Holding Corporation (BAH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: BAH income statement, BAH balance sheet, BAH key metrics, BAH analyst forecast, BAH chart. See the BAH stock overview for the latest quote and news.

BAH AI stock analysis FAQ

What is Booz Allen Hamilton's dividend yield and payout schedule?

Booz Allen Hamilton pays a quarterly dividend with an annualized forward payout of $2.36, which equates to a 3.18% dividend yield. The payout ratio stands at 33.9%.

How does Booz Allen Hamilton's valuation compare to its peers?

The stock trades at a trailing P/E of 11.7x and an EV-to-EBITDA of 10.0x. Both metrics are lower than the US-listed Industrials peer medians of 24.8x and 13.9x, respectively.

What were Booz Allen Hamilton's latest quarterly growth rates?

For the quarter ended June 30, 2026, quarterly revenue declined 4.2% year-over-year. Quarterly earnings dropped 24.5% over the same period.

When does Booz Allen Hamilton report earnings next?

Booz Allen Hamilton is scheduled to report its next earnings on October 23, 2026. The company beat EPS estimates in 3 of the last 4 quarters.

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