Upside case
Bull case
$76-0.2%
The bull case prices BAH at 13x on FY1 earnings, assuming continued execution and no meaningful deceleration in the core business.
Analysis OverviewHoldUpdated May 1, 2026
Booz Allen Hamilton Holding Corporation (BAH) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
21
analysts
9 bullish · 2 bearish · 21 covering BAH
Strong Buy
0
Buy
9
Hold
10
Sell
2
Strong Sell
0
Consensus Target
$97
+27.4% vs today
Scenario Range
$25 – $76
Model bear to bull value window
Coverage
21
Published analyst ratings
Valuation Context
12.6x
Forward P/E · Market cap $12.9B
BAH price targets
Three scenarios for where BAH stock could go
Current
~$76
Confidence
77 / 100
Updated
May 1, 2026
Where we are now
Current · $76
Bear
$25
Base
$66
Bull
$76
Market caseClosest to today
Base case
$66-13.3%
At 11x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$25-67.0%
If investor confidence fades or macro conditions deteriorate, a 8x multiple contraction could push BAH down roughly 67% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Booz Allen Hamilton Holding Corporation
BAH · NYSEIndustrialsConsulting ServicesMarch year-end
Booz Allen Hamilton is a management and technology consulting firm primarily serving U.S. government agencies — especially defense, intelligence, and civilian departments. It generates revenue through consulting contracts (roughly 70% from government clients) across cybersecurity, analytics, digital solutions, and engineering services. The company's key advantage is its deep security clearances and decades-long relationships with defense and intelligence agencies, creating high barriers to entry for competitors.
Market Cap
$12.9B
Revenue TTM
$11.4B
Net Income TTM
$837M
Net Margin
7.3%
BAH Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
67%Exceptional
12 quarters tracked
Revenue Beat Rate
50%Exceptional
vs consensus estimates
Avg EPS Surprise
+9.1%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 3 of 4Q2 2025
EPS
$1.61/$1.61
Revenue
$3.0B/$3.0B
Q3 2025
EPS
$1.48/$1.45
Revenue
$2.9B/$2.9B
Q4 2025
EPS
$1.49/$1.51
Revenue
$2.9B/$3.0B
Q1 2026
EPS
$1.77/$1.32
Revenue
$2.6B/$2.7B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $1.61/$1.61 | +0.0% | $3.0B/$3.0B | -1.9% |
| Q3 2025 | $1.48/$1.45 | +2.1% | $2.9B/$2.9B | -0.8% |
| Q4 2025 | $1.49/$1.51 | -1.3% | $2.9B/$3.0B | -2.7% |
| Q1 2026 | $1.77/$1.32 | +34.1% | $2.6B/$2.7B | -4.4% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$12.3B
+8.1% YoY
FY2
$13.6B
+10.6% YoY
EPS Outlook
FY1
$5.72
-15.7% YoY
FY2
$6.28
+9.8% YoY
Trailing FCF (TTM)$933M
FCF Margin: 8.2%
Next Earnings
May 22, 2026
Expected EPS
$1.32
Expected Revenue
$2.9B
BAH beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
BAH Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $12.0B
Product Mix
Latest annual revenue by segment or product family
Cost Reimbursable Contract
57.3%
+16.9% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Cost Reimbursable Contract is the largest disclosed segment at 57.3% of FY 2025 revenue, up 16.9% YoY.
BAH Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Undervalued
Fair value est. $101 — implies +28.8% from today's price.
Upside to Fair Value
28.8%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
BAH
10.5x
vs
S&P 500
25.2x
58% discount
vs Industrials Trailing P/E
BAH
10.5x
vs
Industrials
25.9x
59% discount
vs BAH 5Y Avg P/E
Today
10.5x
vs
5Y Average
27.3x
61% discount
Forward PE
12.6x
S&P 500
19.1x
-34%
Industrials
20.8x
-40%
5Y Avg
—
—
Trailing PE
10.5x
S&P 500
25.2x
-58%
Industrials
25.9x
-59%
5Y Avg
27.3x
-61%
PEG Ratio
0.65x
S&P 500
1.75x
-63%
Industrials
1.59x
-59%
5Y Avg
—
—
EV/EBITDA
10.6x
S&P 500
15.3x
-31%
Industrials
13.9x
-24%
5Y Avg
17.4x
-39%
Price/FCF
14.2x
S&P 500
21.3x
-34%
Industrials
20.6x
-31%
5Y Avg
35.0x
-59%
Price/Sales
1.1x
S&P 500
3.1x
-66%
Industrials
1.6x
-32%
5Y Avg
1.4x
-24%
Dividend Yield
2.74%
S&P 500
1.88%
+46%
Industrials
1.24%
+121%
5Y Avg
1.72%
+59%
| Metric | BAH | S&P 500 | Industrials | 5Y Avg BAH |
|---|---|---|---|---|
| Forward PE | 12.6x | 19.1x-34% | 20.8x-40% | — |
| Trailing PE | 10.5x | 25.2x-58% | 25.9x-59% | 27.3x-61% |
| PEG Ratio | 0.65x | 1.75x-63% | 1.59x-59% | — |
| EV/EBITDA | 10.6x | 15.3x-31% | 13.9x-24% | 17.4x-39% |
| Price/FCF | 14.2x | 21.3x-34% | 20.6x-31% | 35.0x-59% |
| Price/Sales | 1.1x | 3.1x-66% | 1.6x-32% | 1.4x-24% |
| Dividend Yield | 2.74% | 1.88% | 1.24% | 1.72% |
BAH trades above S&P 500 benchmarks on 0 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolBAH Financial Health
Verdict
Strong
BAH generates $933M in free cash flow at a 8.2% margin — 24.3% ROIC signals a durable competitive advantage · returns 9.0% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$11.4B
Revenue Growth
TTM vs prior year
-3.1%
Gross Margin
Gross profit as a share of revenue
52.7%
Operating Margin
Operating income divided by revenue
9.2%
Net Margin
Net income divided by revenue
7.3%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$6.79
Free Cash Flow (TTM)
Cash generation after capex
$933M
FCF Margin
FCF as share of revenue — the primary cash quality signal
8.2%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
24.3%
ROA
Return on assets, trailing twelve months
11.9%
Cash & Equivalents
Liquid assets on the balance sheet
$885M
Net Debt
Total debt minus cash
$3.3B
Debt Serviceability
Net debt as a multiple of annual free cash flow
3.6× FCF
~3.6 years to full repayment at current FCF run-rate
ROE *
Return on equity, trailing twelve months
81.6%
* Elevated by buyback-compressed equity — compare ROIC (24.3%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
9.0%
Dividend
2.7%
Buyback
6.3%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$812M
Dividend / Share
Annualized trailing dividend per share
$2.09
Payout Ratio
Share of earnings distributed as dividends
28.7%
Shares Outstanding
Declining as buybacks retire shares
169M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pageBAH Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Government Contract Dependence
Approximately 98% of Booz Allen Hamilton's revenue comes from U.S. government contracts, creating significant concentration risk. Political and budgetary uncertainties, including potential budget cuts and reforms targeting consultants, could adversely impact revenue.
High Risk
Operational and Reputational Risks
The company has faced reputational damage, notably from the Treasury Department's termination of contracts due to a tax information leak. Such incidents can hinder future contract opportunities and affect relationships with other government agencies.
Medium
Financial and Market Risks
Despite a strong balance sheet, a significant revenue decline could pressure Booz Allen Hamilton's financial reserves and cash flow. The company's stock performance is susceptible to broader market sentiment and uncertainties related to contract types, which can affect profitability.
Medium
Regulatory Compliance Risks
Noncompliance with complex government procurement rules could lead to contract suspension or termination, resulting in negative financial consequences. The need for heavy investment in infrastructure resilience to meet evolving regulatory requirements may strain financial resources.
Lower
Market Sentiment Risks
The company's focus on U.S. government consulting may not appeal to momentum investors, as it leads to stable revenues rather than rapid growth. Additionally, recent layoffs and cost-cutting measures indicate challenges in maintaining revenue levels.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why BAH Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Technological Transformation and High-Margin Services
Booz Allen Hamilton is shifting its focus from traditional consulting to advanced technology solutions, including AI and cybersecurity. This strategic pivot is expected to drive higher profit margins, particularly in the defense and intelligence sectors, bolstered by a partnership with Andreessen Horowitz to integrate commercial AI into classified missions.
Valuation and Undervaluation
Despite recent revenue dips, analysts believe the market has overreacted to challenges like government shutdowns. Booz Allen Hamilton's P/E ratio is below industry averages, indicating potential undervaluation, with discounted cash flow analysis suggesting the stock is trading at a 50% discount to its intrinsic value.
Strong Financials and Dividend
The company showcases strong earnings and financial health, reflected in high returns on equity and invested capital. Additionally, Booz Allen Hamilton offers a meaningful dividend yield, which it has consistently increased for over a decade, with a sustainable payout ratio.
Growing Backlog and Government Contracts
Booz Allen Hamilton remains a key contractor for the U.S. federal government, focusing on defense and technology modernization. Despite some revenue declines in the civil sector, the company maintains a robust backlog of government contracts, particularly in high-margin national security areas.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
BAH Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$76.28
52W Range Position
4%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$73.93
+3.2% from the low
52-Week High
$130.91
-41.7% from the high
1 Month
-8.88%
3 Month
-14.30%
YTD
-10.1%
1 Year
-38.2%
3Y CAGR
-5.9%
5Y CAGR
-1.9%
10Y CAGR
+10.7%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
BAH vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
12.6x
vs 11.4x median
+10% above peer median
Revenue Growth
+8.1%
vs +2.7% median
+198% above peer median
Net Margin
7.3%
vs 5.9% median
+25% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
BAH BAH Booz Allen Hamilton Holding Corporation | $12.9B | 12.6x | +8.1% | 7.3% | Hold | +27.4% |
SAI SAIC Science Applications International Corporation | $4.2B | 9.3x | -1.6% | 4.9% | Hold | +3.3% |
LDO LDOS Leidos Holdings, Inc. | $17.0B | 11.4x | +2.7% | 8.2% | Buy | +51.2% |
CAC CACI CACI International Inc | $11.0B | 17.7x | +9.8% | 5.9% | Buy | +45.3% |
ACN ACN Accenture plc | $108.7B | 12.6x | +4.7% | 10.7% | Buy | +71.8% |
DXC DXC DXC Technology Company | $1.9B | 3.6x | -5.7% | 3.3% | Hold | +13.3% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
BAH Dividend and Capital Return
BAH returns capital mainly through $812M/year in buybacks (6.3% buyback yield), with a modest 2.74% dividend — combining for 9.0% total shareholder yield. The dividend has grown for 10 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
9.0%
Dividend + buyback return per year
Buyback Yield
6.3%
Dividend Yield
2.74%
Payout Ratio
28.7%
How BAH Splits Its Return
Div 2.74%
Buyback 6.3%
Dividend 2.74%Buybacks 6.3%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.09
Growth Streak
Consecutive years of dividend increases
10Y
3Y Div CAGR
8.6%
5Y Div CAGR
12.2%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$812M
Estimated Shares Retired
11M
Approx. Share Reduction
6.3%
Shares Outstanding
Current diluted share count from the screening snapshot
169M
At 6.3%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.59 | — | — | — |
| 2025 | $2.20 | +7.8% | 6.1% | 8.0% |
| 2024 | $2.04 | +8.5% | 2.1% | 3.4% |
| 2023 | $1.88 | +9.3% | 1.8% | 3.7% |
| 2022 | $1.72 | +16.2% | 3.5% | 5.3% |
FAQ
7 questionsBAH Investor Questions
Common questions answered from live analyst data and company financials.
01Is Booz Allen Hamilton Holding Corporation (BAH) stock a buy or sell in 2026?
Booz Allen Hamilton Holding Corporation (BAH) is rated Hold by Wall Street analysts as of 2026. Of 21 analysts covering the stock, 9 rate it Buy or Strong Buy, 10 rate it Hold, and 2 rate it Sell or Strong Sell. The consensus 12-month price target is $97, implying +27.4% from the current price of $76. The bear case scenario is $25 and the bull case is $76.
02What is the BAH stock price target for 2026?
The Wall Street consensus price target for BAH is $97 based on 21 analyst estimates. The high-end target is $115 (+50.8% from today), and the low-end target is $81 (+6.2%). The base case model target is $66.
03Is Booz Allen Hamilton Holding Corporation (BAH) stock overvalued in 2026?
BAH trades at 12.6x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Booz Allen Hamilton Holding Corporation (BAH) stock in 2026?
The primary risks for BAH in 2026 are: (1) Government Contract Dependence — Approximately 98% of Booz Allen Hamilton's revenue comes from U. (2) Operational and Reputational Risks — The company has faced reputational damage, notably from the Treasury Department's termination of contracts due to a tax information leak. (3) Financial and Market Risks — Despite a strong balance sheet, a significant revenue decline could pressure Booz Allen Hamilton's financial reserves and cash flow. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Booz Allen Hamilton Holding Corporation's revenue and earnings forecast?
Analyst consensus estimates BAH will report consensus revenue of $12.3B (+8.1% year-over-year) and EPS of $5.72 (-15.7% year-over-year) for the upcoming fiscal year. The following year, analysts project $13.6B in revenue.
06When does Booz Allen Hamilton Holding Corporation (BAH) report its next earnings?
Booz Allen Hamilton Holding Corporation is expected to report its next earnings on approximately 2026-05-22. Consensus expects EPS of $1.32 and revenue of $2.9B. Over recent quarters, BAH has beaten EPS estimates 67% of the time.
07How much free cash flow does Booz Allen Hamilton Holding Corporation generate?
Booz Allen Hamilton Holding Corporation (BAH) generated $933M in free cash flow over the trailing twelve months — a free cash flow margin of 8.2%. BAH returns capital to shareholders through dividends (2.7% yield) and share repurchases ($812M TTM).