Booz Allen Hamilton (BAH)
NYSEIndustrialsConsulting ServicesSnapshot 2026-09-04
$72.80-1.46%
Close 2026-09-04 · 1-day change
NYSEIndustrialsConsulting ServicesSnapshot 2026-09-04
Intact: The reason to own it still holds.
Booz Allen Hamilton aims to stabilize revenue near $11.45 billion in fiscal 2027. Free cash flow is expected between $825 million and $925 million, showing strong cash generation. Adjusted EPS is targeted at $6.00 to $6.35, maintaining earnings growth. The $720 million acquisition of Ultra I&C Mission Solutions should boost defense tech revenue with strong double-digit growth.
Revenue declined 6.4% last year and guidance was cut recently. The company faces sector headwinds and elevated risk. Litigation and capital allocation concerns could pressure cash flow and earnings. Growth may remain weak or decline further.
The market price reflects about 4% revenue growth and is roughly 58% below our valuation model midpoint. Analysts expect modest growth but recent guidance cuts and sector headwinds create uncertainty. Our view is cautious on revenue stabilization and cash flow targets.
Breaks if: adjusted EPS falls below $6.00 in FY27
Breaks if: free cash flow falls below $825 million in FY27
revenue falls below $11.2 billion in FY27
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on steady revenue and cash flow growth. The current thesis state is mixed, as management has set ambitious targets but faces a challenging market environment.
The valuation is considered cheap compared to peers, with a slight expectations gap indicating that the market is not fully pricing in potential risks. The current fragility is low, suggesting that the market is aware of execution challenges but does not expect severe consequences.
Management is on track to achieve its free cash flow and adjusted EPS targets, which is a positive sign. However, revenue has shown a slight decline, reflecting the fragile nature of earnings quality and elevated risk factors.
The thesis hinges on management's ability to meet guidance and the performance of sector bellwethers. If these companies continue to perform well, it could provide a favorable backdrop for BAH, while any negative guidance from them could pose risks.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook. The company aims for adjusted diluted EPS of $6.00 to $6.35 for fiscal year 2027. It also targets revenue of $11.2 to $11.7 billion for the same period.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: acquisition fails to close or integration delays beyond FY27 Q2
Overall, BAH is navigating a complex environment but has set clear targets that it is working towards. Not investment advice.