Booz Allen Hamilton Holding Corporation (BAH) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Booz Allen Hamilton Holding Corporation (BAH) Industrial Operations Profile

Booz Allen Hamilton Holding Corporation delivers management and technology consulting, analytics, engineering, and cyber services to governments, corporations, and non-profits. With a history spanning over a century, the company leverages its expertise in AI, data science, and digital solutions to address complex challenges across diverse sectors.

What Is the Investment Thesis for BAH?

Booz Allen Hamilton presents a compelling investment thesis based on its established market position, diverse service offerings, and strong financial performance. With a P/E ratio of 11.0 and a profit margin of 7.3%, the company demonstrates financial stability. A dividend yield of 2.91% offers investors an income stream. Growth catalysts include expanding its AI and data analytics capabilities, capitalizing on increased government spending on cybersecurity, and expanding its commercial client base. Potential risks include increased competition in the consulting services market and potential impacts from economic downturns on government and corporate spending. The company's beta of 0.35 suggests lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

BAH Key Highlights

Booz Allen Hamilton's market capitalization stands at $9.86 billion, reflecting its significant presence in the consulting services industry.

• The company's gross margin of 52.7% indicates efficient cost management and strong pricing power.
• A dividend yield of 2.91% provides investors with a steady income stream.
• The P/E ratio of 11.0 suggests that the company is undervalued compared to its peers.
• Booz Allen Hamilton's beta of 0.35 indicates lower volatility compared to the broader market, making it a relatively stable investment.

Who Are BAH's Competitors?

BAH is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BAH's Key Strengths?

Strong relationships with government agencies.

• Deep expertise in technology and analytics.
• Diversified service offerings.
• Long-standing reputation.

What Are BAH's Weaknesses?

Reliance on government contracts.

• Exposure to economic downturns.
• Intense competition.
• Potential for project delays.

What Could Drive BAH Stock Higher?

Continued government investment in cybersecurity and defense.

• Expansion of AI and data analytics service offerings.
• Growth in commercial sector consulting demand.
• Potential for new government contracts in emerging technology areas.
• Strategic acquisitions to expand capabilities and market reach.

What Are the Key Risks for BAH?

Insider selling — insiders were net sellers of roughly $6.1M recently.

• Increased competition from other consulting firms and technology companies.
• Changes in government regulations and spending priorities.
• Economic downturns impacting government and commercial budgets.
• Cybersecurity threats and data breaches.
• Project delays and cost overruns.

What Are the Growth Opportunities for BAH?

• Growth opportunity 1: Expanding AI and Machine Learning Capabilities: Booz Allen Hamilton can capitalize on the growing demand for artificial intelligence and machine learning solutions. The global AI market is projected to reach $190.61 billion in 2025, presenting a significant opportunity for Booz Allen to expand its AI-related services. By investing in research and development, acquiring AI-focused companies, and training its workforce in AI technologies, Booz Allen can strengthen its competitive advantage and capture a larger share of the AI market. Timeline: Ongoing.
• Growth opportunity 2: Increasing Government Cybersecurity Spending: With the rising threat of cyberattacks, governments worldwide are increasing their investments in cybersecurity. Booz Allen Hamilton can leverage its expertise in cyber risk management to secure additional government contracts. The global cybersecurity market is projected to reach $345.4 billion in 2026. By offering innovative cybersecurity solutions and building strong relationships with government agencies, Booz Allen can capitalize on this growth opportunity. Timeline: Ongoing.
• Growth opportunity 3: Expanding Commercial Client Base: While Booz Allen Hamilton has a strong presence in the government sector, it can further expand its commercial client base. By targeting industries such as healthcare, finance, and energy, Booz Allen can diversify its revenue streams and reduce its reliance on government contracts. The commercial consulting market is substantial, offering significant growth potential for Booz Allen. Timeline: Ongoing.
• Growth opportunity 4: Leveraging Digital Transformation Initiatives: As businesses across industries undergo digital transformation, Booz Allen Hamilton can provide consulting and technology services to support these initiatives. The digital transformation market is experiencing rapid growth, driven by the need for businesses to adapt to changing customer expectations and technological advancements. By offering expertise in areas such as cloud computing, data analytics, and mobile technologies, Booz Allen can help businesses achieve their digital transformation goals. Timeline: Ongoing.
• Growth opportunity 5: Strategic Acquisitions and Partnerships: Booz Allen Hamilton can pursue strategic acquisitions and partnerships to expand its capabilities and market reach. By acquiring companies with complementary expertise or entering into partnerships with technology providers, Booz Allen can enhance its service offerings and access new markets. Strategic acquisitions and partnerships can accelerate Booz Allen's growth and strengthen its competitive position. Timeline: Ongoing.

What Are BAH's Competitive Advantages?

• Strong relationships with government agencies.
• Deep expertise in technology and analytics.
• Long-standing reputation for delivering high-quality services.
• Diversified service offerings across multiple sectors.

What Does BAH Do?

Founded in 1914, Booz Allen Hamilton Holding Corporation has evolved from a management consulting firm into a leading provider of technology and consulting services. Initially focused on management consulting, the company expanded its offerings to include technology consulting, analytics, engineering, digital solutions, mission operations, and cyber services. Booz Allen serves a diverse client base, including governments, corporations, and not-for-profit organizations, both in the United States and internationally. The company's consulting solutions span various domains, encompassing business strategies, human capital, and operations. Its analytics services focus on delivering transformational solutions in areas such as artificial intelligence, data science, automation, and quantum computing. Booz Allen also designs, develops, and implements solutions built on contemporary methodologies and modern architectures, delivering engineering services to define, develop, implement, sustain, and modernize complex physical systems. Furthermore, it offers cyber risk management solutions, including prevention, detection, and cost-effectiveness strategies. Headquartered in McLean, Virginia, Booz Allen Hamilton leverages its extensive expertise and experience to address complex challenges and deliver innovative solutions to its clients.

What Products and Services Does BAH Offer?

• Provides management and technology consulting services.
• Offers analytics and data science solutions.
• Delivers engineering services and solutions.
• Develops and implements digital solutions.
• Provides mission operations support.
• Offers cyber risk management solutions.

How Does BAH Make Money?

• Provides consulting services to governments, corporations, and not-for-profit organizations.
• Generates revenue through contracts and project-based fees.
• Offers a range of services, including management consulting, technology consulting, and cyber security.
• Focuses on delivering innovative solutions to complex challenges.

What Industry Does BAH Operate In?

Booz Allen Hamilton operates within the consulting services industry, which is characterized by intense competition and evolving client needs. The industry is experiencing growth driven by increasing demand for digital transformation, cybersecurity, and data analytics solutions. Booz Allen competes with other consulting firms, technology companies, and specialized service providers. The company differentiates itself through its deep expertise in government consulting, its focus on technology and analytics, and its long-standing client relationships. The consulting services market is projected to continue growing, driven by the increasing complexity of business challenges and the need for specialized expertise.

Who Are BAH's Key Customers?

• U.S. Federal Government agencies.
• State and local governments.
• Commercial businesses in various industries.
• International government organizations.

Over the past six months, Booz Allen Hamilton Holding Corporation insiders filed 22 SEC Form 4 transactions — 8 sales and 14 purchases. On net that is roughly 227K shares acquired (about $6.1M) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: Booz Allen Hamilton Holding Corporation

Revenue for Booz Allen Hamilton Holding Corporation came in at $2.80B during Q2 2026. The company recorded net income of $198.0M, with diluted EPS of $1.64. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Industrials company. Across the four most recent quarters, BAH averaged $1.59 in diluted EPS.

BAH Valuation & Market Position

With a $9.13B market cap, Booz Allen Hamilton Holding Corporation sits in the mid-cap segment of the market. Relative to its peer group, BAH's quantitative score of 85/100 is above the peer average of 68/100.

Return on equity for Booz Allen Hamilton Holding Corporation stands at 81.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 11.5%, showing how much profit it generates from its asset base. BAH trades at a trailing price-to-earnings ratio of 10.99, below the Industrials sector average of ~32x. Its free cash flow yield is 10.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.78 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 9.1%, the inverse of the P/E and a quick read on earnings relative to price.

Booz Allen Hamilton Holding Corporation's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 3.66 places it in the safe zone, indicating low near-term bankruptcy risk.

Wall Street analysts project Booz Allen Hamilton Holding Corporation revenue of about $11.30B for fiscal 2026, with EPS near $6.08. The estimate reflects 10 contributing analysts.

Company Profile

Booz Allen Hamilton Holding Corporation operates in the Consulting Services industry within the Industrials sector. It is headquartered in McLean, US. The company is led by CEO Horacio D. Rozanski. BAH has traded publicly since 2010.

BAH Financials

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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