BAHNYSEServices-Management Consulting ServicesUS GAAP · USD

Booz Allen Hamilton Holding Corp

Booz Allen Hamilton Holding Corp is an advanced technology and consulting company focused on U.S. defense, civil, and national security missions. The firm combines management consulting with technology delivery, using AI, cyber, data fusion, and other digital capabilities to help government clients modernize operations and improve mission outcomes. Founded in 1914, it has evolved from a traditional consulting business into a mission-focused technology partner positioned around the U.S. government’s most sensitive and complex programs. It also serves a smaller set of commercial clients, especially in cyber-related work, in the United States and select international markets.

Revenue11.2bn USD
−6.4 %y/y
Operating profit (EBIT)1,033m USD
−24.6 %y/y
EBIT margin9.2%
−2.2 ppy/y
Net income851m USD
−9.0 %y/y
Free cash flow951m USD
+4.4 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

0.02.55.07.510.012.5bn USD2021: 7.9 bn USD2021: EBIT 0.75 bn USD20212022: 8.4 bn USD2022: EBIT 0.69 bn USD20222023: 9.3 bn USD2023: EBIT 0.45 bn USD20232024: 10.7 bn USD2024: EBIT 1.0 bn USD20242025: 12.0 bn USD2025: EBIT 1.4 bn USD20252026: 11.2 bn USD2026: EBIT 1.0 bn USD202611.21.0
RevenueOperating profit (EBIT)

Business

Share of revenue
Federal mission consulting45 %

Advisory and implementation work for defense, civil, and national security agencies to modernize missions and operations.

Cybersecurity services25 %

Cyber defense, secure digital services, and related technical support for government and commercial clients.

Technology solutions20 %

AI, data, software, and systems solutions used to improve mission performance and automate workflows.

Specialized emerging technologies10 %

Quantum, space, ISR, and other advanced technology offerings developed for high-priority missions.

Customers

Booz Allen’s core customers are U.S. federal government agencies, especially cabinet-level departments tied to defense, intelligence, homeland security, health, treasury, and transportation missions. The company says civil and global commercial customers represented about 35% of fiscal 2025 revenue, while the remainder came from defense and national security work. Within civil, major buyers include the Department of Veterans Affairs, Health and Human Services, Treasury, Labor, Homeland Security, Justice, Energy, Commerce, and Transportation. Commercial customers are a smaller part of the mix and mainly buy advanced cyber solutions, reflecting the firm’s ability to transfer government-grade security and technical expertise into regulated industries.

Defense and national security agencies

Buy AI, cyber, space, ISR, and mission engineering support to protect military and intelligence operations.

Civil federal agencies

Buy modernization, systems integration, and process improvement services to improve public-sector efficiency and service delivery.

Department of Veterans Affairs

A major customer that purchases mission support and modernization services across healthcare and benefits operations.

Commercial cyber customers

Financial services, health and life sciences, energy, and technology clients buy advanced cyber solutions and security expertise.

Other federal cabinet-level departments

Departments such as HHS, Treasury, Homeland Security, Justice, Energy, Commerce, and Transportation buy specialized consulting and technology services.

Strategy

Booz Allen’s strategy is to deepen its position as an advanced technology partner for the nation’s most critical missions rather than operate as a traditional generalist consultant. Management emphasizes expanding existing customer relationships, winning new customers through core capabilities, and building new offerings in response to emerging needs such as AI, cyber, quantum, and space. The company also uses acquisitions to add capabilities and scale, as shown by recent activity including EverWatch and PAR Government Systems Corporation. Its operating model is designed to keep the firm integrated as one P&L so it can redeploy talent across programs and invest ahead of technology waves.

Grow AI, cyber, and digital mission solutionsShort term

These capabilities are central to the company’s identity and are the main way it differentiates from traditional consulting firms.

Expand into emerging technology areasMedium term

Quantum, space, and data-fusion work can create new contract opportunities and strengthen long-term relevance in national security markets.

Use acquisitions to add capability and scaleMedium term

Targeted acquisitions can broaden technical offerings and support growth in adjacent mission areas.

Geography

2024

Booz Allen is primarily a U.S.-based business, with most revenue tied to federal customers and domestic government missions. The company also serves commercial customers in the United States and select international locations, but the filing does not provide a country-by-country revenue split. Its operating footprint is shaped by where federal agencies are located and where sensitive work must be performed, which typically favors proximity to Washington, D.C. and other U.S. government centers. International exposure appears limited and is mainly tied to select foreign operations and customer engagements rather than a broad global delivery model.

United States100 %

Risks

Booz Allen is exposed to heavy dependence on U.S. government spending, procurement cycles, and mission priorities, so changes in federal budgets or contract awards can quickly affect demand. The business also faces competitive bidding risk, including protests, recompetes, and pressure from large defense contractors, software firms, systems integrators, and smaller specialists. Because the company relies on security-cleared personnel and sensitive information, misconduct, compliance failures, or cybersecurity incidents could damage customer trust and trigger legal or contractual consequences. Acquisitions, international operations, and reimbursement rules under FAR, DFARS, and related regulations add execution and compliance risk, while labor availability remains important because people costs are the largest operating expense.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →U.S. government spending and mission-priority changes1Competitive bidding, protests, and recompetes2Talent retention and security-cleared staffing3Regulatory and compliance exposure4Acquisition integration risk5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. U.S. government spending and mission-priority changesImpact: HighLikelihood: High

    Most revenue comes from federal customers, so budget shifts, shutdowns, or priority changes can reduce or delay contract awards.

    Exposure: Defense and civil federal programs

  2. Competitive bidding, protests, and recompetesImpact: HighLikelihood: Medium

    Federal contracts are frequently re-bid and can be delayed or lost due to competitor protests or pricing pressure.

    ExposureIDIQGWACAgency task orders
  3. Talent retention and security-cleared staffingImpact: HighLikelihood: Medium

    Delivery depends on specialized personnel with clearances, and labor shortages or turnover can limit execution and margins.

    ExposureEngineeringCyberMission consulting teams
  4. Regulatory and compliance exposureImpact: HighLikelihood: Medium

    Government contracting rules, cost allowability, and False Claims Act risk can create penalties, disallowances, or reputational damage.

    ExposureFARDFARSCASReimbursement practices
  5. Acquisition integration riskImpact: MediumLikelihood: Low

    The company is using acquisitions to expand capabilities, but synergies and customer retention may not materialize as planned.

    ExposureEverWatchPAR Government Systems CorporationFuture deals
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Accounting

Judgemental items
Revenue recognition on government contracts

Management estimates variable consideration and contract progress, which directly affects when revenue is recorded.

Impact: Can shift revenue and margin between quarters

Variable consideration and unfunded amounts

Award fees, incentive fees, and unfunded contract amounts require judgment and can reverse if estimates change.

Impact: Affects reported revenue and operating income

Acquisition accounting and goodwill

Recent acquisitions can create goodwill and intangible assets that may later require impairment testing.

Impact: Can affect balance sheet and future earnings

Contingencies and reserves

Tax disputes, DOJ investigations, and other legal matters may require reserves or insurance recoveries.

Impact: Can materially affect net income

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026