BAH

T13.5% portfolio

Booz Allen Hamilton Holding Corporation

Next est. report 2026-10-23 · BMO

BS Jobs '26: Billable Hours Pyramid Business Services '26: AI Governance, Trust & Compliance Modern Warfare '26: Golden Dome Modern Warfare '26: Integrators Space Supply Chain '26: Space War & Defense

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Overview

Booz Allen Hamilton (BAH) is a consulting and technology firm offering strategic, digital, engineering, and cyber solutions. They serve U.S. government national

Booz Allen Hamilton (BAH) is a consulting and technology firm offering strategic, digital, engineering, and cyber solutions. They serve U.S. government national security and civil agencies, plus commercial clients. The National Security segment is growing, driven by AI and defense tech, while Civil faces declines. The recently completed Ultra I&C Mission Solutions acquisition enhances their advanced technology offerings.

Key Inputs And Sourcing

1. Direct Labor

labor · United States · 40-50%

Source Booz Allen Hamilton is a professional services firm; transcript mentions 'accelerate hiring' and 'cleared personnel'. Labor rates are a significant cost.

Confidence: high

2. Subcontractor Labor

labor · United States · 25-35%

Source Explicitly mentioned as the 'majority of our billable expenses' in the transcript. Booz Allen actively partners with and utilizes small businesses as subcontractors.

Confidence: high

3. Software Licenses & Development

other · Global · 5-10%

Source Heavy investment in 'Vellox suite,' 'Agentic AI,' 'quantum,' '6G,' 'AI RAN,' and 'post-quantum cryptography' implies significant software development and licensing costs. The Ultra acquisition includes 'command and control software'.

Confidence: medium

4. Hardware Components (Defense Tech/Edge Compute)

component · Global · 3-7%

Source The Ultra I&C Mission Solutions acquisition includes 'ruggedized edge compute and encryption management' products. Booz Allen also builds 'soldier worn tech and battle management systems'.

Confidence: medium

5. Cloud Computing Services

other · Global · 2-5%

Source Partnerships with 'NVIDIA, AWS' and offering 'Cloud Solutions' indicate significant consumption of cloud computing resources.

Confidence: medium

Industry Publications

GovConWire (govconwire.com) — Provides breaking news on government contracting, including contract awards, M&A, policies, and technological advancements, directly relevant to Booz Allen's core business.
Defense News (defensenews.com) — Offers global coverage of defense politics, business, and technology, crucial for monitoring Booz Allen's national security and defense tech segments.
Breaking Defense (breakingdefense.com) — Focuses on defense technology, policy, and national security news, providing in-depth analysis of emerging threats and capabilities relevant to Booz Allen's strategic investments in AI and cyber.
National Defense Magazine (nationaldefensemagazine.org) — A key source for defense professionals, offering insights into defense programs, policy, business, science, and technology, aligning with Booz Allen's work in advanced tech and government contracts.
DefenseScoop (defensescoop.com) — Dedicated to the U.S. military's acquisition, development, and use of technology for modern defense, directly covering areas where Booz Allen is active, such as AI-enabled readiness and Golden Dome tests.

Economic Data Watch

1. FRED — Federal Government: Purchases of National Defense Goods and Services

Metric/field A794RC0Q052SBEA

Cadence quarterly

Why it matters Directly reflects government spending on defense goods and services, a primary revenue driver for BAH's National Security segment.

Signal to watch Sustained or increasing growth indicates a favorable operating environment.

Confidence: high

2. FRED — Federal Government Outlays: National Defense

Metric/field GFDGDPA188NCQ

Cadence quarterly

Why it matters Indicates overall federal budget allocation to national defense, impacting contract opportunities for BAH.

Signal to watch Consistent or rising outlays suggest stable or growing demand.

Confidence: high

3. FRED — Federal Government Outlays: General Science, Space, and Technology

Metric/field GFSGSTQ011N

Cadence quarterly

Why it matters Reflects government investment in R&D and advanced technology areas, aligning with BAH's strategic focus on quantum, 6G, AI RAN, and space.

Signal to watch Increasing outlays signal growing opportunities in BAH's advanced tech growth vectors.

Confidence: medium

4. FRED — Federal Government Outlays: Health

Metric/field GFSHLTHQ011N

Cadence quarterly

Why it matters Provides insight into spending in the Civil Health sector, a component of BAH's Civil business which faces headwinds.

Signal to watch Stabilization or growth could indicate a potential easing of Civil business pressures.

Confidence: medium

5. FRED — Federal Government Outlays: General Government

Metric/field GFSGGOQ011N

Cadence quarterly

Why it matters A broader indicator for federal spending on general government functions, impacting parts of BAH's Civil portfolio.

Signal to watch Changes in this outlay can signal shifts in the broader Civil contracting environment.

Confidence: medium

Free Alt Data Watch

1. Google Trends — Web Search Interest

Metric/field 'AI in defense' (Search Interest Index)

Cadence weekly

Why it matters Reflects public and industry interest in AI applications for defense, a key growth area for BAH.

Signal to watch Sustained or increasing search interest indicates growing market relevance and potential demand.

Confidence: medium

2. Google Trends — Web Search Interest

Metric/field 'cybersecurity government contracts' (Search Interest Index)

Cadence weekly

Why it matters Indicates demand and awareness around cybersecurity services in the government sector, a core BAH offering.

Signal to watch Rising search interest suggests increasing focus and potential opportunities in government cybersecurity.

Confidence: medium

3. USAspending.gov — Prime Award Data

Metric/field Total Obligated Amount for 'Booz Allen Hamilton Holding Corp'

Cadence daily

Why it matters Directly tracks the value of new and ongoing government contracts awarded to BAH, a key indicator of business performance.

Signal to watch Consistent or increasing obligated amounts signal strong contract wins and revenue visibility.

Confidence: high

4. Reddit — r/CredibleDefense Subreddit Activity

Metric/field Post/Comment Count mentioning 'AI in defense'

Cadence daily

Why it matters Gauges community discussion, emerging trends, and sentiment among defense enthusiasts and professionals regarding AI in defense.

Signal to watch Increased activity and positive sentiment can indicate growing interest and potential future demand.

Confidence: low

5. LinkedIn (Public Profile Scrape) — Job Postings

Metric/field Number of Open Job Postings for 'Cleared Personnel' at 'Booz Allen Hamilton'

Cadence weekly

Why it matters Monitors hiring activity and potential supply constraints for cleared personnel, a critical factor for BAH's ability to staff projects.

Signal to watch Consistent hiring for cleared roles indicates project demand; significant increases may signal growth or staffing challenges.

Confidence: medium

Paid Alt Data Watch

1. Revelio Labs — Employee Data

Metric/field Employee Headcount - Filtered by 'Security Clearance' for 'Booz Allen Hamilton'

Cadence monthly

Why it matters Provides granular insights into BAH's workforce composition and ability to staff sensitive government projects, addressing a noted constraint.

Signal to watch Stable or growing cleared headcount indicates strong operational capacity; declines could signal staffing issues.

Confidence: high

2. Thinknum Alternative Data — Government Contracts

Metric/field Total Value of New Awards for 'Booz Allen Hamilton'

Cadence daily

Why it matters Offers timely and aggregated data on BAH's government contract wins, potentially faster than public sources.

Signal to watch Consistent or increasing new award values indicate strong business development and revenue pipeline.

Confidence: high

3. Deltek GovWin IQ — Federal Opportunities

Metric/field Pipeline Value and Status for 'Booz Allen Hamilton' (e.g., 'Qualified', 'Proposal Submitted', 'Awarded')

Cadence weekly

Why it matters Provides forward visibility into potential government contract opportunities, allowing for assessment of future revenue streams.

Signal to watch Growing pipeline value and progression through stages indicate future growth potential.

Confidence: high

4. Quid — News & Media Analytics

Metric/field Sentiment Score for 'Booz Allen Hamilton' with keywords 'AI', 'Cyber', 'Defense Tech'

Cadence daily

Why it matters Tracks media perception and public discourse around BAH's strategic growth areas, indicating market reception and potential reputational impacts.

Signal to watch Positive or improving sentiment suggests successful strategic execution and market recognition.

Confidence: medium

5. Gartner/Forrester — Government IT Spending Reports

Metric/field US Federal Government IT Spending Forecast - National Security Sector (Annual Report Figure)

Cadence annually

Why it matters Provides expert forecasts on IT spending within BAH's key growth segment, informing long-term strategic outlook.

Signal to watch Upward revisions in spending forecasts indicate a more favorable long-term market for BAH.

Confidence: high

Search Keywords Brand Product

Vellox suite
Vellox Ranger
Agentic AI
physical AI
quantum computing
6G
AI RAN
Defense Tech
post-quantum cryptography
Zero Trust
government consulting
national security
civil agencies
cybersecurity solutions
advanced analytics
digital transformation
engineering services
procurement reform
fixed-price contracts
outcome-based contracting
venture investments
industry partnerships

Search Keywords Event Phrases

Q1 FY27 Earnings
Ultra Mission Solutions Acquisition

Search Keywords Policy Regulatory

NDAA
Continuing Resolution
Reconciliation Bill
Supplemental Funding
Executive Orders
OMB Guidance
Procurement Reform

What They Do (Plain English & Analogies): Booz Allen Hamilton is like a high-tech problem-solver for the government and large companies. Imagine the U.S. military needs to build a super-smart defense system that uses artificial intelligence (AI) to detect threats faster, or a government agency needs to protect its critical data from advanced cyberattacks. Booz Allen steps in with teams of experts who design, build, and implement these complex solutions. They help clients figure out the best strategies, develop cutting-edge AI and cybersecurity tools, and engineer advanced systems for national defense, often with a focus on delivering clear, measurable results. They are like architects and engineers for complex, high-stakes digital and physical systems, particularly for national security, using cutting-edge tools like AI to build smarter defenses and more efficient operations.
Very Brief History: Founded in 1914, Booz Allen Hamilton Holding Corporation began as a management consulting firm. Over more than a century, it has evolved into a prominent consulting and technology firm, primarily serving governmental bodies and commercial enterprises, with its headquarters in McLean, Virginia. The company has continuously adapted its offerings, with a recent strategic pivot towards high-tech, outcome-based solutions, particularly in cyber and AI.
"Street Stereotype": Booz Allen Hamilton is generally perceived as a large, established government contractor and consulting firm, often associated with national security and defense. While historically seen as a stable, 'people factory' type of business, there's a growing perception of its strategic pivot towards high-tech, outcome-based solutions, particularly in cyber and AI. The market is currently focused on its ability to navigate a challenging Civil business environment while accelerating growth in its National Security portfolio through advanced technology offerings, executing on fixed-price contracts, and successfully integrating acquisitions like Ultra Mission Solutions.
Subsidiaries On Linked In*: Defy Security — Operates as a wholly owned subsidiary after acquisition in April 2026, strengthening Booz Allen's commercial cybersecurity offerings.; LinkedIn: defy-security
Ultra I&C Mission Solutions — Acquisition expected to close in Q2 FY27, expanding Booz Allen's Defense Tech product line and accelerating growth across secure communications, edge computing, encryption, and battlefield systems.; LinkedIn: ultra-i-c-mission-solutions
Customer Sectors & Example Clients: Booz Allen Hamilton serves governmental bodies, commercial enterprises, and non-profit organizations. Their primary customer sectors include National Security (Defense, Intelligence, Homeland Security) and Civil (Health, Treasury, Department of Homeland Security). Specific clients mentioned or inferred from the transcript and search results include the U.S. Army (for modernization priorities and the BEATS contract), the U.S. Department of the Treasury (though facing contract reductions), U.S. Customs and Border Protection (for Quantum Cryptography and Certificate support), and the U.S. Air Force (for quantum information science research and development). They also work with early adopters in government and industry for quantum solutions. Key partners include NVIDIA, AWS, and Shield AI.
New Customers / Segments They'Re Targeting: Booz Allen Hamilton is actively targeting new demand across both government and commercial markets, particularly in the rapidly evolving cyber threat environment driven by Agentic AI. They are expanding their Vellox suite of Agentic cyber products to capture this growing demand. Within their Civil portfolio, they are working to pull their defense tech and cyber solutions through civil agencies. The company is also positioning its technology solutions on government marketplaces like Tradewinds, ARI, and Platform One to reach customers faster and more flexibly. They are expanding their quantum business across commercial, National Security, and Civil sectors, and are seeing an expanding pipeline for Agentic software development in Civil.
Sales Geographies And Expansion Plans: Booz Allen Hamilton primarily sells its services and solutions to governmental bodies, commercial enterprises, and non-profit organizations domestically within the United States. The acquisition of Defy Security supports Booz Allen's growing business in the United Kingdom and European Union, providing a broader international customer base with access to advanced cyber services. The Ultra I&C Mission Solutions acquisition is expected to make the combined platform available to national security clients worldwide, strengthening their ability to scale product delivery and expand global reach for U.S. and allied customers.
How Key Themes May Help/Hurt: The 'Modern Warfare '26: Integrators' theme strongly benefits Booz Allen Hamilton. The company is a key integrator of advanced, AI-driven, multi-domain defense systems, aligning perfectly with the theme's focus on urgent demand for such solutions due to evolving geopolitical tensions and asymmetric threats. Booz Allen's investments in cyber and defense tech, including the Ultra acquisition, directly contribute to building and operationalizing advanced technologies for warfighting missions, such as command and control software, ruggedized edge compute, and encryption management. The shift towards outcome-based and fixed-price contracts, which is a core aspect of the Integrators theme, is welcomed by Booz Allen as it allows for greater value delivery and stronger financial performance over time. The company's focus on AI-enabled delivery and product offerings, particularly in areas like Agentic AI and physical AI at the edge, directly addresses the need for faster decision-making and autonomous operations in contested environments, which is a critical aspect of modern warfare. While the theme acknowledges budget uncertainties and supply chain risks, Booz Allen's strong funded backlog and strategic positioning in high-priority national security areas suggest it is well-placed to capitalize on the accelerating global defense spending and re-industrialization efforts.

3 Main Long-Term Bull Details

Leadership in AI and Advanced Technology: Booz Allen Hamilton is strategically investing in and accelerating growth in high-demand areas like cyber and defense technology, with a particular focus on Agentic AI (Vellox suite, Ranger), physical AI, quantum, 6G, and AI RAN. They are leveraging over a decade of AI investment and unique partnerships to drive new demand and differentiate offerings across government and commercial markets.
Strong National Security Growth and Outcome-Based Contracts: The National Security portfolio is a key growth driver, expected to grow mid-single digits in fiscal year 2027, offsetting Civil business headwinds. The company is actively shifting towards outcome-based and fixed-price contracts, as evidenced by an 18% year-over-year increase in Other Transaction Authority (OTA) opportunities, which allows for greater value delivery and stronger financial performance.
Robust Operational Execution and Strategic Acquisitions: Booz Allen consistently demonstrates strong operational execution, delivering solid profitability (Q1 FY27 adjusted EBITDA margin of 11.9%, up 130 basis points) and free cash flow. Strategic acquisitions like Ultra I&C Mission Solutions, expected to close in Q2 FY27, are anticipated to further expand and scale their Defense Tech product line, accelerating growth and bringing differentiated products to market faster.

3 Main Long-Term Bear Details

Persistent Headwinds in Civil Business: The Civil portfolio continues to face significant challenges, declining 16% year-over-year in Q1 FY27 and expected to decline high single digits for the full FY27, with a sequential double-digit decline anticipated in Q2. This persistent weakness, driven by contract roll-offs and smaller recompetes, tempers overall revenue growth and creates tough comparisons.
Market Volatility and Procurement Uncertainty: The broader market environment remains dynamic and uncertain due particularly to a midterm election year, complicating the budget process and creating funding volatility. Ongoing government procurement changes, while positive long-term, are causing near-term delays in awards as customers adjust how they buy and structure work.
Execution Risks and Margin Pressure from Investments/Hiring: Despite strategic investments, the company faces execution risks, including potential supply constraints in hiring cleared personnel. While the shift to fixed-price contracts offers higher margin potential, civil declines and ongoing investments for future growth are expected to create margin pressure, particularly in the first half of FY27, implying a step down in margins for the rest of the year.

Competitors And Differentiation: Booz Allen Hamilton operates in a competitive landscape with other large government contractors and consulting firms. The company differentiates itself through its deep expertise in advanced technologies like Agentic AI, physical AI, quantum, 6G, and AI RAN, which they have been investing in for over a decade. They combine exquisite tradecraft with AI capabilities to offer a complete stack of cyber solutions, including Zero Trust and the Vellox suite of Agentic cyber products, which they believe gives them a 'jump start' in the market. Their strategic acquisitions, like Ultra I&C Mission Solutions, aim to expand and scale their Defense Tech product line and accelerate growth by bringing more differentiated and scaled products to market faster. They also leverage unique partnerships with major players like NVIDIA, AWS, Shield AI, OpenAI, and Anthropic to create differentiated offerings.
Recent Performance & What The Market'S Focused On: Booz Allen Hamilton's Q1 FY27 saw revenue decline 4.2% year-over-year to $2.8 billion, but strong operational execution drove adjusted EBITDA margins to 11.9%, up 130 basis points year-over-year, and adjusted diluted EPS increased 22% to $1.81. The National Security business grew 1% with robust bookings, achieving a book-to-bill of 1.5x and a 15% increase in funded backlog, offsetting a 16% Civil decline. The market is focused on the company's ability to accelerate growth in its National Security portfolio, particularly through strategic investments in cyber and defense technology, including the Ultra I&C Mission Solutions acquisition. Investors are also closely watching the pace of recovery in the Civil business, the impact of the shift to outcome-based and fixed-price contracts on margins, and how the company navigates budget uncertainties in an election year.

Revenue Segments And Estimated Mix: National Security — Mix: Larger segment, growth driver; Source: Q1 Fiscal Year 2027 earnings call; Trend: Grew 1% year-over-year in Q1 FY27; expected to grow mid-single digits for the fiscal year with stronger growth in the back half.
Civil — Mix: Smaller segment, declining; Source: Q1 Fiscal Year 2027 earnings call; Trend: Declined 16% year-over-year in Q1 FY27; expected sequential double-digit decline next quarter and high single digits for the fiscal year.
Product Brands: Vellox suite
Vellox Ranger
Vellox Reverser
Vellox Navigator
Vellox Reverser Triage
Vellox Striker
Vellox LayerOne
EdgeXtend
Modular Detachment Kit (MDK)
Sit(x)
Apex
ADSI
ACTS
Rain
Knox
Booz Allen Precog

Bull / Bear Details

Booz Allen Hamilton is positioned for long-term growth by strategically leveraging AI and advanced technology, including recent acquisitions like Defy Security,

Thesis

Booz Allen Hamilton is positioned for long-term growth by strategically leveraging AI and advanced technology, including recent acquisitions like Defy Security, to deliver high-value solutions to national security clients. Despite persistent civil business headwinds and election-year market volatility, strong operational execution, robust bookings, and a focus on cyber, defense tech, and outcome-based contracts support a bullish outlook for margin expansion and revenue reacceleration. (Updated: 2026-07-26)

Bull case

Booz Allen demonstrates strong operational execution and profitability, with adjusted EBITDA margin at 11.1% in Q4 FY26, up 50 basis points year-over-year, and adjusted diluted EPS growing 11%. The company also realized about one-third of its $150 million annualized cost takeout target in FY26, retaining 40% of those savings, contributing to bottom-line growth and investment capacity.
Strategic investments in high-growth cyber and defense technology are accelerating, with the Vellox suite and EdgeXtend product lines expanding. The acquisition of Defy Security strengthens commercial cyber product sales, while key wins like the Golden Dome OTA for space-based interceptors and the $937 million BEATS contract for Army modernization highlight strong positioning in critical national security priorities.
The National Security portfolio is a key growth driver, growing 1.6% in Q4 FY26 and expected to drive overall mid-single-digit growth in FY27. The company saw a nearly 90% increase in Other Transaction Authority (OTA) proposal submissions and about a 50% increase in OTA awards year-over-year, indicating strong demand for outcome-based contracts.

Bear case

The Civil business continues to face significant headwinds, declining 23% year-over-year in Q4 FY26 and expected to decline high single digits in FY27, particularly in the first half. This persistent weakness is driven by challenging comparisons, contract roll-offs, and smaller, shorter-duration recompetes, tempering overall revenue growth and creating near-term pressure.
The broader market environment remains dynamic and uncertain due to an election year, complicating the budget process and creating funding volatility. Ongoing government procurement changes, while positive long-term, are causing continued near-term uncertainty and potential delays in awards as customers adjust to new buying methods.
Despite strategic investments, the company faces execution risks, including potential supply constraints in hiring cleared personnel. The shift to outcome-based and fixed-price contracts, while offering higher margin potential, introduces complexity. Civil declines and ongoing investments for future growth are expected to create margin pressure, particularly in the first half of FY27.

Bull / Bear Case

Bear Case: The Civil business continues to be a significant drag, declining 23% year-over-year in Q4 FY26 and projected to decline high single digits in FY27, particularly in the first half. This persistent weakness, driven by challenging comparisons and smaller recompetes, tempers overall revenue growth. The broader market environment remains dynamic and uncertain due to an election year, complicating budget processes and creating funding volatility. Ongoing government procurement changes, while beneficial long-term, are causing near-term uncertainty and potential award delays. Despite strategic investments, the company faces execution risks, including supply constraints in hiring cleared personnel. Civil declines and ongoing investments are expected to create margin pressure, particularly in the first half of FY27, with an anticipated step-down in Q2 margins.
Bull Case: Booz Allen Hamilton is strategically positioned for long-term growth by aggressively investing in high-growth cyber and defense technology, including its Vellox suite and EdgeXtend product lines, and through acquisitions like Defy Security. The company is deeply integrating AI and agentic capabilities across its operations, driving new demand and differentiation in critical national security missions. Strong operational execution led to an 11.1% adjusted EBITDA margin in Q4 FY26, with an expected 11% for FY27, supported by cost takeouts. The National Security portfolio is a key growth driver, projected for mid-single-digit growth in FY27, and a significant increase in outcome-based contract awards (OTAs) signals strong demand and potential for higher profitability. Strategic partnerships with tech giants further enhance its competitive edge.
More Compelling & Why: Bear. Booz Allen Hamilton's current P/E ratio of approximately 25x appears elevated compared to some industry peers. The strongest argument for the bear case is the persistent and significant headwinds in the Civil business, which is expected to decline high single digits in FY27, particularly in the first half, and contribute to a near-term step-down in margins. My view would flip to bullish if the Civil business demonstrates a faster-than-expected recovery, showing positive sequential growth earlier than anticipated, and if the company consistently exceeds its mid-single-digit National Security growth targets.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
Progress and Adoption of AI-Enabled Cyber Products (Vellox Suite)	This factor is crucial as it indicates Booz Allen's ability to capitalize on the rapidly evolving cyber threat landscape driven by Agentic AI, translating its strategic investments into tangible growth and market leadership in a high-demand area.	Announcements of new Vellox suite product general availability (e.g., Ranger and future products), significant contract wins (e.g., >$50M) specifically mentioning Vellox or agentic cyber solutions, and any reported revenue contribution from these products.	Bullish: Successful and timely launch of additional Vellox suite products (beyond Ranger) in H2 FY27, significant contract awards, or positive customer testimonials/case studies. Bearish: Delays in product launches, lack of significant customer adoption, or minimal revenue contribution from new cyber products.	Company press releases, earnings call transcripts, SEC filings (10-Q, 10-K), investor presentations. Next earnings call in October 2026.	Google Trends: 'Vellox suite' or 'Booz Allen Agentic AI cyber' search volume. Government contracting databases (e.g., USASpending.gov, SAM.gov) for contract awards mentioning 'Booz Allen' and 'cyber' or 'AI'.	Thinknum: Booz Allen job postings for 'Agentic AI,' 'Vellox,' or 'cyber product development' (growth/decline). Gartner/IDC reports: Market share and adoption rates for AI-enabled cyber solutions.
Outcome-Based / Fixed-Price Contract Awards (especially OTAs)	The shift to fixed-price and outcome-based contracts, particularly OTAs, is a strategic imperative for the government and a long-term margin expansion opportunity for Booz Allen, indicating its ability to adapt and deliver greater value.	Management commentary on the percentage of revenue derived from fixed-price/outcome-based contracts, specific metrics on OTA proposal submissions and awards, and any discernible margin benefits from this shift in future quarters.	Bullish: Continued increase in OTA awards (e.g., pipeline growth translates to awards >18% YoY) and fixed-price contract mix, with management highlighting specific margin benefits and successful execution. Bearish: Stagnation or decline in the fixed-price/OTA contract mix, or no discernible margin improvement from this strategic shift.	Earnings call transcripts, investor presentations, SEC filings.	USASpending.gov / SAM.gov: Search for 'Other Transaction Authority' or 'fixed-price' contracts awarded to Booz Allen Hamilton. Government Accountability Office (GAO) reports on procurement trends.	GovWin IQ / Deltek: Government contract award data, including contract type and value for BAH.
Trailing 12-Month Book-to-Bill Ratio & Funded Backlog Growth	These are critical leading indicators of future revenue growth, reflecting the company's ability to win new business and convert demand into funded contracts, which is essential for sustaining momentum, especially in the National Security segment.	The reported quarterly book-to-bill ratio (Q1 FY27 was 1.5x) and trailing 12-month book-to-bill ratio (Q1 FY27 was 1.1x), and the year-over-year growth of funded backlog (Q1 FY27 was 15%).	Bullish: Trailing 12-month book-to-bill consistently above 1.1x and sustained funded backlog growth (e.g., >15% YoY), indicating strong demand and successful contract capture. Bearish: Trailing 12-month book-to-bill consistently below 1.0x or a deceleration in funded backlog growth.	Company earnings releases, earnings call transcripts, investor presentations, SEC filings.	USASpending.gov / SAM.gov: Daily/weekly updates on government contract awards to Booz Allen Hamilton.	GovWin IQ / Deltek: Detailed government contract award data, including contract value and type.
Ultra I&C Mission Solutions Acquisition Close and Integration	This acquisition is a key inorganic growth driver, expected to significantly expand Booz Allen's Defense Tech product line, accelerate growth, and contribute to higher EBITDA margins, directly supporting the National Security portfolio's momentum.	Official announcement of the acquisition closing, management commentary on the integration progress, and updated financial guidance in the next earnings call (October 2026) that includes Ultra's revenue and EBITDA contributions.	Bullish: Acquisition closes as expected in Q2 FY27, management provides positive updates on integration, and Ultra's contribution leads to an upward revision of FY27 guidance (especially for National Security revenue and overall EBITDA margins). Bearish: Delays in closing the acquisition, integration challenges, or Ultra's financial contribution falling short of 'strong double-digit growth' and 'well above 20% EBITDA margins'.	Company press releases, earnings call transcripts (next in October 2026), SEC filings.	Defense News/Breaking Defense: News articles on defense contractor M&A or specific updates on Ultra I&C Mission Solutions.	S&P Capital IQ / Bloomberg: M&A transaction status, analyst reports on defense sector M&A.
Civil Business Revenue Trend and Recovery	The Civil business is a significant headwind, and its trajectory directly impacts overall revenue growth and profitability. A moderation in its decline or signs of recovery are crucial for improving the company's consolidated financial performance.	Year-over-year revenue decline rate for the Civil portfolio in Q2 FY27 and beyond, and sequential quarterly revenue growth for Civil. Management expects a sequential double-digit decline in Q2 and a high-single-digit decline for the full FY27.	Bullish: Civil revenue decline moderates to less than high-single-digits year-over-year in H2 FY27, or shows positive sequential growth in Q3/Q4 FY27, indicating a faster-than-expected recovery. Bearish: Civil revenue decline accelerates or remains in the double-digits year-over-year in H2 FY27, indicating continued weakness and a prolonged drag on overall growth.	Company earnings releases, earnings call transcripts, investor presentations, SEC filings.	USASpending.gov / SAM.gov: Government contract awards specifically for civil agencies (e.g., Treasury, DHS) to Booz Allen Hamilton.	GovWin IQ / Deltek: Detailed government contract award data for civil agencies.

Key Reported Metrics, Reratings Triggers & Results3 rows

This profitability metric reflects operational execution and the impact of the shift to outcome-based contracts and investment spending. Management expects a st

Upcoming print · 2026-10-23

Key reported metrics
Metric	Last period	Why it matters
Adjusted EBITDA Margin	11.9%	This profitability metric reflects operational execution and the impact of the shift to outcome-based contracts and investment spending. Management expects a step-down in Q2, making its actual performance critical.
Civil Business Revenue Growth (YoY)	-16%	This segment faces significant headwinds and is expected to decline sequentially in Q2. Its trajectory will indicate the pace of recovery and the effectiveness of the company's mitigation strategies, impacting overall revenue performance.
National Security Business Revenue Growth (YoY)	1%	This segment is the primary growth driver, offsetting Civil headwinds. Strong performance here validates strategic investments in cyber and defense tech, crucial for achieving overall FY2027 growth targets and demonstrating market leadership.

Key Questions

Will the National Security portfolio's anticipated mid-single-digit growth be sufficient to offset the continued high-single-digit decline in the Civil business

Will the National Security portfolio's anticipated mid-single-digit growth be sufficient to offset the continued high-single-digit decline in the Civil business, particularly in the first half of fiscal year 2027, to meet overall revenue guidance?

Question 2: Can Booz Allen Hamilton's accelerated investments in cyber and defense technology, coupled with the shift to outcome-based and fixed-price contracts, drive long-term margin expansion despite the expected near-term margin step-down in fiscal year 2027?
Question 3: How will the ongoing government procurement changes and the inherent budget volatility of an election year impact the pace of contract awards and the translation of demand into revenue for Booz Allen Hamilton in the upcoming quarter?

Earnings Transcript Summary2 rows

2026-07-24 · 2027Q1 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Accelerating transformation and investing organically and inorganically in areas driving future growth, specifically cyber and defense tech, and next-wave technologies like autonomy, physical AI, quantum, 6G, and AI RAN. 2. Maintaining strong execution and discipline in a dynamic and uneven macro environment, particularly given budget uncertainty due to the midterm election year and procurement reform. 3. Maximizing the value of unique partnerships and venture investments, and scaling product offerings, especially in cyber (Vellox suite) and defense tech (Ultra I&C Mission Solutions acquisition).	Call Takeaway & ToneThe overall takeaway of the call is that Booz Allen Hamilton delivered solid first-quarter fiscal year 2027 results, consistent with expectations, driven by strong operational execution and a robust selling quarter. The company is actively accelerating its transformation through strategic investments in high-growth areas like cyber and defense technology, exemplified by the planned acquisition of Ultra I&C Mission Solutions. While the Civil business continues to face near-term headwinds, the National Security portfolio is gaining momentum, supported by strong demand and an improving funded backlog. The shift towards outcomes-based and fixed-price contracting is viewed as a positive long-term opportunity for value creation. The tone of the call was cautiously optimistic, acknowledging ongoing market dynamics and potential budget uncertainties in an election year, but expressing confidence in the company's strategic direction and ability to execute.	Prior Quarter'S Y/Y Growth By SegmentIn the prior quarter (Q4 FY26), the National Security portfolio grew 1.6% year-over-year, and the Civil business declined 23% year-over-year.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Guidance approach and second-half uncertainty, including acquisitions: Analysts questioned how management was approaching guidance given accelerated funding but also second-half uncertainty, and whether acquisitions were included. Management reaffirmed guidance, citing solid Q1 performance and strong forward indicators like funded awards and backlog. They acknowledged the dynamic environment with four legislative items in Congress (NDAA, CR, reconciliation bill, supplemental) creating uncertainty, and stated they would update guidance next quarter to include the Ultra acquisition. 2. Funded bookings progression between National Security and Civil: Analysts inquired about funded bookings in the quarter and how they expect them to progress through the year across segments. Management responded that overall funding was up 18% year-over-year across both Civil and National Security, with funded backlog increasing 15% year-over-year. They noted that a lot of the bookings this quarter were weighted toward National Security. 3. Portfolio shaping within National Security (key technologies/capabilities) and the 'moat' within Civil: Analysts asked about the most attractive technologies and capabilities for portfolio shaping in National Security and the key moat in Civil. Management highlighted cyber (Zero Trust, Vellox suite, Agentic AI) and defense tech (C3BM, autonomy, Ultra acquisition) as areas with significant growth potential across all businesses. They also mentioned investments in quantum, AI RAN, and productizing AI at the edge. For Civil, they emphasized their commitment to important missions, deep expertise, and an expanding customer base.	Revenue SegmentsTotal revenue declined 4.2% year-over-year to $2.8 billion. Revenue ex billable expenses was down 3.8% versus the prior year. The National Security business grew 1% year-over-year. The Civil business declined 16% year-over-year.

2026-05-22 · 2026Q4 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Investing organically and inorganically to accelerate growth in cyber and defense technology, with a focus on monetizing intellectual property and differentiated offerings like the Vellox suite and EdgeXtend. 2. Injecting AI and agentic capabilities into all aspects of the business, from existing work to new opportunities and internal infrastructure, and accelerating investments in next-wave technologies such as physical AI, quantum, 6G, and AI RAN. 3. Maximizing the value of unique tech partnerships and venture investments, and driving profit growth by building scale and go-to-market capacity for product offerings.	Call Takeaway & ToneThe overall takeaway of the call is that Booz Allen Hamilton navigated a challenging fiscal year 2026, particularly in its Civil business, but is strategically positioned for a return to growth in fiscal year 2027, driven by its National Security portfolio and significant investments in cyber and defense technology. The tone was cautiously optimistic, acknowledging ongoing market volatility and procurement changes while emphasizing strong operational execution, cost discipline, and accelerated strategic transformation. Management expressed confidence in their ability to monetize intellectual property, leverage AI, and capitalize on strategic partnerships for future growth.	Prior Quarter'S Y/Y Growth By SegmentIn Q3 FY2026, the National Security portfolio declined 1% year-over-year, and the Civil business declined 28% year-over-year.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Revenue guidance and the shape of the year: Analysts questioned what would drive performance to the high versus low end of the 0% to 4% revenue guidance and sought more detail on the expected negative start and positive end to the year. Management responded that the guidance is bounded by current market conditions, not extreme scenarios, and expects the first quarter to be the low point for growth, with sequential improvement throughout the year, particularly in the second half for Civil, while National Security should be favorable throughout. 2. The procurement environment and reputational issues: Analysts asked about the pace of contract adjudications and any impact from reputational issues related to the IRS last year. Management stated that the funding environment and pace of awards have improved since January, with new procurement picking up. On reputational issues, they are in close contact with customers, letting their work speak for itself, and believe they have made significant progress, even looking for opportunities to 'turn the page' at Treasury. 3. Headcount management relative to revenue and margin impact: Analysts inquired about the dynamics driving headcount reductions while productivity increased, and how margins would be impacted by civil declines and investments. Management explained that the divergence between headcount and revenue growth is driven by a shift to outcome-based and fixed-price contracts, monetization of IP, and a focus on agentification and productivity. They noted that civil declines would be a margin headwind, but this is offset by strong execution, cost reductions, and a favorable mix, allowing for aggressive investment in growing areas like cyber and defense tech.	Revenue SegmentsNational Security portfolio grew 1.6% year-over-year. Civil business declined 23% year-over-year.

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2026-07-24

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketBooz Allen is well-positioned to capture growing demand across government and commercial markets as a leader in cyber. The company is rapidly expanding its Vellox suite of Agentic cyber products. The acquisition of Ultra I&C Mission Solutions will help expand and scale its Defense Tech product line and accelerate growth. Booz Allen is also investing in quantum, with a focus on post-quantum cryptography (PQC), and is prepared to scale as demand increases from early adopters in government and industry. Industry partnerships and venture investments with companies like NVIDIA, AWS, and Shield AI are accelerating priorities and creating differentiated offerings. The pipeline for Other Transaction Authority (OTA) opportunities is up 18% year-over-year. Booz Allen is positioning its technology solutions on government marketplaces such as Tradewinds, ARI, and Platform One to provide faster and more flexible ways for customers to buy proven technology. The company is expanding its quantum business, having won its largest pure quantum contract this quarter, spanning commercial, National Security, and Civil sectors. An award specific to AI RAN was won to bring 6G to edge missions, and the pipeline for Agentic software development in Civil is expanding.	About CompetitionAgentic AI has fundamentally changed the cyber threat environment in 2026, making offensive cyber tools autonomous, faster, more persistent, and more dangerous, which positions Booz Allen to capture growing demand for defenses. The Ultra acquisition is expected to bring more differentiated and scaled products to market faster by combining portfolios and sales channels. Booz Allen believes it is in a different place regarding AI as a potential headwind, having invested in AI, built partnerships, and positioned itself for over a decade, particularly with Agentic AI and physical AI. The company's cyber business, which combines tradecraft and AI expertise, gives it a jump start in the market. Booz Allen is partnering with major players like OpenAI and Anthropic, using Mythos in its lab, and working with frontier models, recognizing itself as a leader in this space.	About The Broader IndustryThe overall environment remains dynamic and uneven, though funding improved in Q1, up 17% year-over-year. A midterm election year is expected to complicate the budget process and create funding uncertainty, particularly in the second half of the government fiscal year. The government is fast-tracking procurement reform to make fixed-price contracts the default approach, which is positive long-term but could cause near-term award delays as customers adjust. Technological change is occurring at a blistering pace, reshaping mission needs and making the threat landscape more complex. Agentic AI has fundamentally changed the cyber threat environment in 2026. The government has released additional guidance accelerating the move to fixed-price contracts, which Booz Allen welcomes for better alignment between cost, accountability, and mission impact. Shifts towards more flexible, commercially oriented buying models are also being observed. Currently, four legislative items in Congress—the NDAA, a potential CR, a potential reconciliation bill, and a potential supplemental—could impact the industry's funding dynamics. The Senate's version of the NDAA includes language that could restrict defense contractors from returning capital to shareholders without a waiver and a qualified investment plan. Federal clients are increasingly procuring software and hardware directly from vendors rather than through integrators, though this has not yet significantly impacted Booz Allen's P&L.	Where Things Are HeadedBooz Allen's strategic agenda is aligned to meet the current moment, with urgent investments in cyber and defense tech growth vectors, next-wave tech like autonomy, physical AI, quantum, 6G, and AI RAN, and maximizing partnerships and venture investments. Cyber is expected to drive near- and long-term growth. The Ultra Mission Solutions acquisition is expected to close in the second quarter. The company is on track with expectations laid out in May, executing well in a dynamic environment, and accelerating transformation for future growth. The National Security portfolio is well-positioned, with technologies aligning with national priorities like homeland defense, warfighter readiness, cyber, and U.S. technology leadership. AI-enabled delivery, products, and outcomes-based contracting are expected to drive customer value and bottom-line growth. National Security is still expected to grow mid-single digits for the fiscal year, with stronger growth in the back half. The Civil business is expected to see a sequential double-digit decline next quarter due to contract endings and smaller recompetes, with these first-half dynamics gradually easing in the second half. Guidance for the year across all metrics is reaffirmed, with growth expected to be back-half weighted and some pressure on growth and profitability in Q2 due to Civil headwinds. Approximately 11% margins are expected for the year, implying a step down in Q2 due to the end of higher-margin civil programs and backloaded investment spending. Guidance will be updated in October to include Ultra's numbers. The company aims to invest in technologies that bring warfighter advantage and shareholder value, and plans to deleverage the balance sheet after the Ultra acquisition. Civil business is expected to be down in the high single digits this year, an improvement from last year. The long-term goal is to grow the business faster at the bottom line than the top line, and faster at the top line than headcount.	Updates On ThemeIntegrators:	Broader Themes EmergingThe increasing importance of technological superiority for national and economic security, the shift in government procurement towards speed, commercial solutions, and outcome-based accountability, and the rapid advancements in AI, particularly agentic AI, driving demand for new cyber defense solutions and influencing workforce productivity. The emergence of next-wave technologies like physical AI, quantum, 6G, and AI RAN as future investment areas.	Bullish-Leaning Quotes (Short)We are encouraged that funding continues to improve. In Q1, funding was up 17% year-over-year. Our strategic agenda is aligned to meet this moment. As a leader in cyber, Booz Allen is well-positioned to capture this growing demand. We are on track with the expectations we laid out in May. National Security is well positioned. We delivered results above our expectations in the first quarter. Adjusted EBITDA was $334 million at an adjusted EBITDA margin of 11.9%, up 130 basis points year-over-year. Adjusted diluted earnings per share increased 22% year-over-year to $1.81. Free cash flow in the first quarter was $261 million. We had robust bookings during the quarter with a book-to-bill of 1.5x. Funded backlog increasing 15% year-over-year to $4.7 billion. We're very excited about the Ultra Mission Solutions acquisition. This being the largest award in the history of the company, I think it demonstrates that we continue to bring real value.	Bearish-Leaning Quotes (Short)We are in a midterm election year. Historical precedent suggests this will complicate the budget process and create some funding uncertainty. It could also lead to near-term delays in awards as customers adjust how they buy and structure work. Our civil and national security portfolios face very different conditions and remain on different trajectories. In civil, we are in a transition. Near-term revenue is affected by a few factors we have previously discussed. New contracts are generally smaller in scope and have shorter periods of performance. Consistent with our expectations, our Civil business declined 16% year-over-year. We expect a sequential double-digit decline in civil revenue next quarter. We will see some pressure in 2Q on growth and profitability, largely due to the sequential headwinds in the Civil business. This implies a step down in margins for the rest of the year, particularly in 2Q. We are cautious about it. It remains a choppy environment. We're a little bit behind right now, some supply constraints, particularly around hiring those with clearances.	HiringBooz Allen is using AI to increase productivity and create efficiencies in how it hires and develops talent. The company is beginning to accelerate hiring in its National Security business as funding improves. However, there is a need to accelerate hiring, as the company is currently behind due to supply constraints, particularly for cleared personnel. Headcount was down 7% in the first quarter, partly related to the decline in the Civil business. The company is still hiring, and the portfolio shift is influencing the types of roles being added.

2026-05-22

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketBooz Allen is expanding its reach in the commercial sector through the acquisition of Defy Security, which strengthens its ability to scale cyber product sales and expands its market reach. The company also serves Fortune 500 companies across all 16 critical infrastructure areas and supports important cyber missions in national security and federal agencies. In the Civil portfolio, there is an expanding customer base and increased pipeline, with demand picking up across the entire business.	About CompetitionThe company is making its offerings more competitive in cost-plus contracts by passing on 60% of cost reductions to customers. The rapid agentification of offensive cyber tools is creating a gap that companies like Booz Allen aim to fill with their defensive tools and products.	About The Broader IndustryFiscal year 2026 was described as the most challenging year for the company, marked by unprecedented headwinds in the Civil business and significant market changes. The macro environment is characterized by intensifying geopolitical competition, a more contested global security environment, and the increasing centrality of technological superiority to national and economic security. Government procurement is shifting, with greater emphasis on speed, commercial solutions, and accountability for outcomes, which is expected to cause near-term uncertainty but presents significant opportunities in the medium and long term. The demand for AI-enabled cyber solutions is increasing and is expected to be a major driver in fiscal year 2027 and beyond. The new agentic AI era is also pushing forward the need for zero trust capabilities. The funding environment and pace of contract awards have improved since January, though funding can still be choppy. The current fiscal year is an election year, which can lead to volatility and choppiness in budget dynamics.	Where Things Are HeadedBooz Allen enters fiscal year 2027 with momentum and focus, aiming to return to growth. The strategic agenda includes investing organically and inorganically to accelerate cyber and defense tech growth, injecting AI and agentic capabilities into all operations, accelerating investments in next-wave technologies like physical AI, quantum, 6G, and AI RAN, and maximizing unique tech partnerships. The company expects its Civil portfolio to continue declining in fiscal year 2027, especially in the first half, while the National Security portfolio is anticipated to drive overall growth. Overall revenue for fiscal year 2027 is projected to be between $11.2 billion and $11.7 billion, with National Security growing mid-single digits and Civil declining high single digits. Adjusted EBITDA is expected to be between $1.24 billion and $1.29 billion, implying an 11% margin, and adjusted EPS is forecasted between $6 and $6.35. Free cash flow is expected to be between $825 million and $925 million. Over time, the company expects to see higher profit growth than revenue growth, and higher revenue growth than headcount growth, driven by productivity gains and a shift to outcome-based and fixed-price contracts.	Updates On ThemeBillable	Broader Themes EmergingThe increasing importance of technological superiority for national and economic security, the shift in government procurement towards speed, commercial solutions, and outcome-based accountability, and the rapid advancements in AI, particularly agentic AI, driving demand for new cyber defense solutions and influencing workforce productivity. The emergence of next-wave technologies like physical AI, quantum, 6G, and AI RAN as future investment areas.	Bullish-Leaning Quotes (Short)We are a stronger company than we were a year ago. I am incredibly optimistic about the opportunities ahead. Booz Allen has momentum. We are focused on growth and we are optimistic about the year ahead. We're feeling good about the outlook. We're adding value to customers. our recompete win rate is remaining very high, consistent with the past. We are bullish on our national security business.	Bearish-Leaning Quotes (Short)Fiscal year 2026 was the most challenging year we faced as a public company. We navigated unprecedented headwinds in our Civil business, as well as significant market changes across the board. We do expect these procurement changes to cause continued uncertainty in the near term. we expect our Civil portfolio to continue declining this year, particularly in the first half. funding can be choppy. this is an election year and so we've seen in election years that the -- with the second half of our fiscal, the next current fiscal year, the budget dynamics can take multiple paths from early CRs, to early budgets, to things getting delayed.	HiringHeadcount is still important to the business, but the traditional algorithm for headcount growth is diverging as the company moves towards more productive models. The average headcount growth from fiscal year to fiscal year is complicated by the previous year's dynamics. Initial headcount reductions were driven by specific contract cuts, particularly in Civil, followed by delayering efforts aimed at more efficient business management in anticipation of lower growth rates. Headcount was down 12% in the quarter, but revenue per employee increased by 6%. The company expects that the combination of more fixed-price and outcome-based work, along with a consistent drive for productivity and agentification, will lead to revenue growing faster than headcount, with people becoming more productive. The company plans to invest aggressively in growing areas of the business, and some of that investment will involve adding people.

2026-05-22

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketBooz Allen drove significant growth in outcome-based opportunities and contracts, with a nearly 90% increase in Other Transaction Authority (OTA) proposal submissions and about a 50% increase in OTA awards compared to the prior year. The company accelerated the creation of differentiated offerings and products across its cyber and defense tech vectors, including the Vellox suite and EdgeXtend product lines. Booz Allen built a pipeline of opportunities based on unique partnerships with Nvidia, AWS, a16z companies, and its own Booz Allen Ventures. The recently announced acquisition of Defy Security strengthens the company's ability to scale cyber product sales and expands its reach across the commercial market, including Fortune 500 companies across all 16 critical infrastructure areas. In the Civil portfolio, demand is broad-based and accelerating, leading to new opportunities, with a fourth-quarter book-to-bill of 1.2x led by the Health business. The company was also awarded an OTA on Golden Dome for America's space-based Interceptor program and the $937 million Breakthrough Engineering and Advanced Technology Solutions (BEATS) contract to support the Army's modernization priorities.	About CompetitionGeopolitical competition is intensifying, and the global security environment is becoming more contested. The rapid 'agentification' of offensive cyber tools is creating a gap that companies like Booz Allen aim to fill with their defensive tools and products, such as the Vellox suite. The company is making its offerings more competitive in cost-plus contracts by passing on 60% of cost reductions to customers. Booz Allen emulated advanced adversaries using agentic AI to automate the cyber kill chain, helping to understand threats and build next-generation defensive solutions.	About The Broader IndustryFiscal year 2026 was described as the most challenging year for the company, marked by unprecedented headwinds in the Civil business and significant market changes. The macro environment is shaped by intensifying geopolitical competition, a more contested global security environment, and the increasing centrality of technological superiority to national and economic security. Government procurement is shifting, with greater emphasis on speed, commercial solutions, and accountability for outcomes, which is expected to cause near-term uncertainty but presents significant opportunities in the medium and long term. Demand for AI-enabled cyber solutions is increasing and is expected to be a major driver in fiscal year 2027 and beyond, with the new agentic AI era pushing forward the need for zero trust capabilities. The funding environment and pace of contract awards have improved since January, though funding can still be choppy. The current fiscal year is an election year, which can lead to volatility and choppiness in budget dynamics.	Where Things Are HeadedBooz Allen enters fiscal year 2027 with momentum and focus, aiming to return to growth. The strategic agenda includes investing organically and inorganically to accelerate cyber and defense tech growth, injecting AI and agentic capabilities into all operations, accelerating investments in next-wave technologies like physical AI, quantum, 6G, and AI RAN, and maximizing unique tech partnerships. The company expects its Civil portfolio to continue declining in fiscal year 2027, especially in the first half, while the National Security portfolio is anticipated to drive overall growth and margin expansion. For fiscal year 2027, revenue is projected between $11.2 billion and $11.7 billion, with National Security growing mid-single digits and Civil declining high single digits. Adjusted EBITDA is expected between $1.24 billion and $1.29 billion (implying an 11% margin), adjusted EPS between $6 and $6.35, and free cash flow between $825 million and $925 million. The first quarter is seen as the low point for growth, with sequential improvement throughout the year. Over time, the company expects higher profit growth than revenue growth, and higher revenue growth than headcount growth, driven by productivity gains and a shift to outcome-based and fixed-price contracts.	Updates On ThemeIntegrators:	Broader Themes EmergingThe increasing importance of technological superiority for national and economic security, the shift in government procurement towards speed, commercial solutions, and outcome-based accountability, and the rapid advancements in AI, particularly agentic AI, driving demand for new cyber defense solutions and influencing workforce productivity. The emergence of next-wave technologies like physical AI, quantum, 6G, and AI RAN as future investment areas.	Bullish-Leaning Quotes (Short)We are a stronger company than we were a year ago. I am incredibly optimistic about the opportunities ahead. Booz Allen has momentum. We are focused on growth and we are optimistic about the year ahead. We're feeling good about the outlook. We're adding value to customers. our recompete win rate is remaining very high, consistent with the past. We are bullish on our national security business.	Bearish-Leaning Quotes (Short)Fiscal year 2026 was the most challenging year we faced as a public company. We navigated unprecedented headwinds in our Civil business, as well as significant market changes across the board. We do expect these procurement changes to cause continued uncertainty in the near term. we expect our Civil portfolio to continue declining this year, particularly in the first half. funding can be choppy. this is an election year and so we've seen in election years that the -- with the second half of our fiscal, the next current fiscal year, the budget dynamics can take multiple paths from early CRs, to early budgets, to things getting delayed.	HiringThe average headcount to average headcount fiscal year to fiscal year, that math is much more complicated given the year we had last year. Headcount was down 12% in the quarter, but revenue per employee was up 6%, indicating increased productivity. The overall trend line is towards trying to get civil stabilize and return to growth over time, and accelerating and maximizing the opportunities we see in national security, especially in defense tech, especially in cyber and even in space. The combination of more work moving to fixed price and outcome based and our consistent constant drive to agentify, to drive productivity and so forth should continue to translate into a dynamic where our people will continue to grow, but it will be more productive, so revenue will grow faster than people.

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Date	Comment	Comment Type	Comment Sentiment	Link	Price Reaction
2026-07-23	Lockheed Martin's strong Q2 2026 results and raised guidance signal robust defense spending and re-industrialization. Key takeaways, including LMT's Golden Dome award and emphasis on AI-enabled systems and commercial-like contracts, positively impact Booz Allen Hamilton. BAH, a key player in Golden Dome and AI integration, benefits from these trends. BAH's stock outperformed SPY (0.67% vs -1.23%), reflecting positive market perception from the broader defense sector strength.	Read-Through Transcript	Neutral		+0.67% (vs SPY: +1.90%)
2026-07-24	Booz Allen Hamilton's Q1 FY27 saw revenue decline, but strong operational execution drove adjusted EBITDA margins to 11.9% and EPS up 22%. National Security grew 1% with robust bookings (1.5x book-to-bill), offsetting a 16% Civil decline. Strategic investments in cyber and defense tech, including the Ultra acquisition, were emphasized. The market reacted very positively, with the stock up 10.11% (t+2 days), signaling confidence in profitability and future growth despite macro uncertainties.	Earnings Transcript	Positive		+10.11% (vs SPY: +10.01%)

Upcoming EventsTable

Catalyst ID	Estimated Timing	Estimated Date Start	Estimated Date End	Catalyst	Why It Matters	Ticker Or Theme Specific	Transcript Date	Source Type
BAH_a696e7a5	in October	2026-10-01	2026-10-31	Update to fiscal year 2027 guidance to include the financial impact of the Ultra Mission Solutions acquisition.	This will provide investors with a clearer financial outlook for Booz Allen, incorporating the expected strong growth and high margins from Ultra, potentially leading to an upward revision of guidance.	Ticker	2026-07-24	earnings_transcript