Revenue growth has turned negative at -6.37% YoY, while gross margins experienced a sharp contraction to 20.9% in 2026Q4 from historical levels exceeding 50%.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 |
|---|
| Sales/Revenue | 11.22B | 11.98B | 10.66B | 9.26B | 8.36B | 7.86B | 7.46B | 6.7B | 6.17B | 5.81B | 5.41B | 5.27B | 5.48B | 5.76B | 5.86B | 5.59B | 5.12B | 4.35B |
| Revenue Growth % | -6.37% | 12.36% | 15.15% | 10.7% | 6.42% | 5.29% | 11.33% | 8.7% | 6.16% | 7.47% | 2.48% | -3.72% | -4.85% | -1.73% | 4.79% | 9.15% | 17.73% | - |
| Cost of Goods Sold | 8.87B | 5.42B | 4.92B | 4.3B | 3.9B | 3.66B | 3.38B | 3.1B | 2.87B | 2.68B | 2.58B | 2.59B | 2.72B | 2.87B | 2.93B | 2.84B | 2.65B | 2.29B |
| COGS % of Revenue | 79.09% | 45.23% | 46.16% | 46.49% | 46.63% | 46.54% | 45.27% | 46.25% | 46.47% | 46.11% | 47.73% | 49.17% | 49.58% | 49.86% | 50.08% | 50.74% | 51.81% | 52.62% |
| Gross Profit | 2.35B | 6.56B | 5.74B | 4.95B | 4.46B | 4.2B | 4.08B | 3.6B | 3.3B | 3.13B | 2.83B | 2.68B | 2.76B | 2.89B | 2.92B | 2.75B | 2.47B | 2.06B |
| Gross Margin % | 20.91% | 54.77% | 53.84% | 53.51% | 53.37% | 53.46% | 54.73% | 53.75% | 53.53% | 53.89% | 52.27% | 50.83% | 50.42% | 50.14% | 49.92% | 49.26% | 48.19% | 47.38% |
| Gross Profit Growth % | -64.26% | 14.29% | 15.88% | 10.98% | 6.25% | 2.86% | 13.35% | 9.16% | 5.45% | 10.8% | 5.4% | -2.96% | -4.3% | -1.3% | 6.19% | 11.58% | 19.74% | - |
| Operating Expenses | 1.25B | 5.19B | 4.73B | 4.51B | 3.78B | 3.45B | 3.42B | 3B | 2.78B | 2.62B | 2.38B | 2.22B | 2.3B | 2.44B | 2.54B | 2.43B | 2.27B | 2.06B |
| OpEx % of Revenue | 11.15% | 43.33% | 44.34% | 48.68% | 45.18% | 43.86% | 45.76% | 44.77% | 45.1% | 45.18% | 44.05% | 42.13% | 42.02% | 42.39% | 43.31% | 43.55% | 44.29% | 47.38% |
| Selling, General & Admin | 1.25B | 1.25B | 1.28B | 1.53B | 1.16B | 1.04B | 1.04B | 927.94M | 855.54M | 814.14M | 806.51M | 752.91M | 742.53M | 833.99M | 903.72M | 881.03M | 811.94M | 2.39B |
| SG&A % of Revenue | 11.15% | 10.4% | 12.02% | 16.56% | 13.86% | 13.19% | 13.88% | 13.84% | 13.87% | 14.01% | 14.92% | 14.27% | 13.55% | 14.48% | 15.42% | 15.76% | 15.85% | 54.94% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 3.94B | 3.45B | 2.97B | 2.62B | 2.41B | 2.38B | 2.07B | 1.93B | 1.81B | 1.57B | 1.47B | 1.56B | 1.61B | 1.63B | 1.55B | 1.46B | -329.01M |
| Operating Income | 1.09B | 1.37B | 1.01B | 446.85M | 685.18M | 754.37M | 669.2M | 602.39M | 519.72M | 506.01M | 444.58M | 458.82M | 460.61M | 446.23M | 387.43M | 319.44M | 199.55M | -420.6M |
| Operating Margin % | 9.75% | 11.44% | 9.5% | 4.83% | 8.19% | 9.6% | 8.97% | 8.99% | 8.43% | 8.71% | 8.22% | 8.7% | 8.41% | 7.75% | 6.61% | 5.71% | 3.9% | -9.67% |
| Operating Income Growth % | -20.15% | 35.19% | 126.79% | -34.78% | -9.17% | 12.73% | 11.09% | 15.91% | 2.71% | 13.82% | -3.1% | -0.39% | 3.22% | 15.18% | 21.28% | 60.08% | 147.44% | - |
| EBITDA | 1.26B | 1.53B | 1.18B | 612.33M | 830.93M | 838.69M | 750.28M | 670.97M | 584.48M | 565.56M | 506.12M | 521.48M | 532.94M | 520.24M | 462.64M | 400.05M | 295.32M | -329.01M |
| EBITDA Margin % | 11.21% | 12.81% | 11.04% | 6.61% | 9.93% | 10.67% | 10.05% | 10.01% | 9.48% | 9.74% | 9.36% | 9.89% | 9.73% | 9.04% | 7.9% | 7.15% | 5.76% | -7.56% |
| EBITDA Growth % | -18.11% | 30.35% | 92.31% | -26.31% | -0.92% | 11.78% | 11.82% | 14.8% | 3.35% | 11.74% | -2.95% | -2.15% | 2.44% | 12.45% | 15.65% | 35.46% | 189.76% | - |
| D&A (Non-Cash Add-back) | 163M | 165M | 164.2M | 165.48M | 145.75M | 84.31M | 81.08M | 68.58M | 64.76M | 59.54M | 61.54M | 62.66M | 72.33M | 74.01M | 75.2M | 80.6M | 95.76M | 91.59M |
| EBIT | 1.09B | 1.41B | 1.04B | 484.69M | 674.24M | 718.75M | 669.61M | 600.89M | 506.94M | 482.27M | 441.92M | 457.75M | 458.82M | 438.6M | 391.95M | 259.96M | 199.73M | -415.47M |
| Net Interest Income | -185M | -178M | -162M | -121.09M | -95.17M | -60.71M | -94.87M | -90.54M | -82.27M | -62.3M | -70.81M | -71.83M | -78.03M | -70.28M | -48.08M | -131.89M | -149.27M | -93.8M |
| Interest Income | 28M | 18M | 26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.47M | 5.31M |
| Interest Expense | 213M | 196M | 188M | 121.09M | 95.17M | 60.71M | 94.87M | 90.54M | 82.27M | 62.3M | 70.81M | 71.83M | 78.03M | 70.28M | 48.08M | 131.89M | 150.73M | 99.11M |
| Other Income/Expense | -232M | -151M | -160.08M | -78.9M | -81.14M | -91.93M | -89.77M | -86.99M | -89.69M | -80.36M | -65.12M | -72.9M | -79.82M | -77.92M | -43.56M | -191.38M | -150.56M | -93.98M |
| Pretax Income | 862M | 1.22B | 853.32M | 367.95M | 604.04M | 662.44M | 579.43M | 515.4M | 430.04M | 425.66M | 379.46M | 385.92M | 380.79M | 368.31M | 343.87M | 128.06M | 48.99M | -514.58M |
| Pretax Margin % | 7.68% | 10.18% | 8% | 3.97% | 7.22% | 8.43% | 7.76% | 7.69% | 6.97% | 7.33% | 7.02% | 7.32% | 6.95% | 6.4% | 5.87% | 2.29% | 0.96% | -11.83% |
| Income Tax | 11M | 284M | 247.61M | 96.73M | 137.47M | 53.48M | 96.83M | 96.87M | 128.34M | 164.83M | 85.37M | 153.35M | 148.6M | 149.25M | 103.92M | 43.37M | 23.57M | -78.26M |
| Effective Tax Rate % | 1.28% | 23.3% | 29.02% | 26.29% | 22.76% | 8.07% | 16.71% | 18.8% | 29.84% | 38.72% | 22.5% | 39.74% | 39.02% | 40.52% | 30.22% | 33.87% | 48.12% | 15.21% |
| Net Income | 851M | 935M | 605.71M | 271.79M | 466.74M | 608.96M | 482.6M | 418.53M | 301.69M | 260.82M | 294.09M | 232.57M | 232.19M | 219.06M | 239.96M | 84.69M | 25.42M | -1.28B |
| Net Margin % | 7.59% | 7.8% | 5.68% | 2.94% | 5.58% | 7.75% | 6.47% | 6.24% | 4.89% | 4.49% | 5.44% | 4.41% | 4.24% | 3.8% | 4.1% | 1.51% | 0.5% | -29.53% |
| Net Income Growth % | -8.98% | 54.37% | 122.86% | -41.77% | -23.35% | 26.18% | 15.31% | 38.73% | 15.67% | -11.31% | 26.45% | 0.16% | 5.99% | -8.71% | 183.32% | 233.19% | 101.98% | - |
| Net Income (Continuing) | 851M | 935M | 605.71M | 271.21M | 466.58M | 608.96M | 482.6M | 418.53M | 301.69M | 260.82M | 294.09M | 232.57M | 232.19M | 219.06M | 239.96M | 84.69M | 25.42M | -436.33M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -848.37M |
| Minority Interest | 0 | 0 | 0 | 0 | 651K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 6.91 | 7.25 | 4.59 | 2.03 | 3.44 | 4.37 | 3.41 | 2.91 | 2.05 | 1.67 | 1.94 | 1.52 | 1.54 | 1.45 | 1.70 | 0.66 | 0.22 | -10.49 |
| EPS Growth % | -4.69% | 57.95% | 126.11% | -40.99% | -21.28% | 28.15% | 17.18% | 41.95% | 22.75% | -13.92% | 27.63% | -1.3% | 6.21% | -14.71% | 157.58% | 200% | 102.1% | - |
| EPS (Basic) | 6.91 | 7.28 | 4.61 | 2.04 | 3.46 | 4.40 | 3.43 | 2.94 | 2.08 | 1.69 | 1.98 | 1.58 | 1.62 | 1.56 | 1.83 | 0.74 | 0.24 | -11.74 |
| Diluted Shares Outstanding | 123.24M | 128.29M | 130.82M | 132.72M | 134.85M | 138.7M | 141.24M | 143.16M | 147.75M | 151.19M | 151.59M | 153.01M | 150.77M | 151.07M | 140.81M | 127.45M | 115.08M | 122.51M |
| Basic Shares Outstanding | 123.24M | 127.76M | 130.37M | 132.16M | 134.13M | 137.72M | 140.06M | 141.91M | 146.69M | 149.4M | 148.53M | 147.2M | 143.33M | 140.42M | 130.15M | 114.48M | 106.22M | 109.41M |
| Dividend Payout Ratio | 32.43% | 28.66% | 41.93% | 86.83% | 44.79% | 29.73% | 30.38% | 27.29% | 34.28% | 35.63% | 27.21% | 92.49% | 148.93% | 512.4% | 4.96% | - | 2409.23% | - |
Federal budget appropriation delays
According to the most recent quarterly data, BAH experienced a 6.37% year-over-year revenue decline, marking a significant departure from the double-digit growth observed in early 2025 and suggesting that the firm is currently struggling to maintain its top-line momentum in a competitive federal contracting environment.
The shift from positive growth to a contractionary phase indicates that the firm may be facing challenges in contract renewals or a slowdown in new project awards. Investors should monitor whether this trend reflects a strategic pivot away from lower-margin pass-through work or a more concerning loss of market share in core intelligence domains.
As reported in the latest financial statements, BAH's gross margin plummeted to 20.9% in 2026Q4 from historical levels exceeding 50%, a dramatic shift that likely reflects a fundamental change in revenue recognition or a significant increase in low-margin pass-through costs within the current project mix.
This compression suggests that the firm's ability to capture value from its specialized consulting services is being diluted by higher subcontractor reliance. The discrepancy between recent quarters warrants further investigation into whether this represents a permanent structural shift or a temporary accounting anomaly related to contract-specific cost structures.
Based on the provided income statement figures, BAH's operating margin of 9.5% in 2026Q4 demonstrates limited scalability, as the firm continues to struggle with maintaining operating income growth in the face of declining revenue and persistent overhead requirements for highly specialized, cleared technical talent.
The inability to expand operating margins during periods of revenue contraction highlights the labor-intensive nature of the business model. Without a shift toward proprietary software or higher-margin intellectual property, the firm appears tethered to a cost structure that scales linearly with headcount rather than output.
Analysis of recent filings reveals that BAH's net income remains sensitive to fluctuations in stock-based compensation, which reached $25.7M in 2025Q2, potentially obscuring the underlying cash-generative capacity of the business and complicating the assessment of true operational performance for long-term equity holders.
While EPS growth has shown resilience in recent quarters, the reliance on non-cash adjustments and variable compensation warrants caution. Investors should scrutinize the sustainability of these earnings, particularly if the firm continues to utilize share repurchases to offset dilution from equity-based incentive programs.
The current market premium relative to peers like SAIC appears increasingly difficult to justify, as the firm's recent 6.37% revenue contraction and margin volatility suggest that the 'incumbency advantage' may be insufficient to protect the firm from broader federal budget pressures and competitive labor market dynamics.
Short-term performance metrics indicate that the firm is not immune to the same cyclical risks that impact its peers, despite its specialized positioning. If the firm fails to return to organic growth, the market may be forced to re-evaluate the valuation premium currently assigned to its intelligence-focused service model.
Quick answers to the most common questions about buying BAH stock.
For fiscal year 2026, Booz Allen Hamilton Holding Corporation (BAH) reported total revenue of $11.22B. This represents a 157.8% increase compared to $4.35B in 2009.
Booz Allen Hamilton Holding Corporation (BAH) is profitable, generating $851.0M in net income for the fiscal year ending 2026 with a net profit margin of 7.6%.
Booz Allen Hamilton Holding Corporation (BAH) reported an operating income of $1.09B, resulting in an operating profit margin of 9.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Booz Allen Hamilton Holding Corporation (BAH) generated $2.35B in gross profit for the year, representing a gross profit margin of 20.9%. This demonstrates the company's core pricing power and production efficiency.