# Booz Allen Hamilton Holding (BAH) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/BAH/thesis · /stocks/BAH/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: BAH
step: "04"
title: Financial Snapshot — 3-Year P&L Summary
created: 2026-05-29
---

### Step 04 — Financial Snapshot: BAH

#### 3-Year Income Statement Summary

| Metric | FY2023 | FY2024 | FY2025 | FY2026 |
|--------|--------|--------|--------|--------|
| **Revenue** | $9,259M | $10,662M | $11,980M | $11,217M |
| YoY Growth | +10.7% | +15.2% | +12.4% | -6.4% |
| **Cost of Revenue** | ~$7,200M | ~$8,250M | ~$9,200M | ~$8,700M |
| **Gross Profit** | ~$2,059M | ~$2,412M | ~$2,780M | ~$2,517M |
| Gross Margin | ~22.2% | ~22.6% | ~23.2% | ~22.4% |
| **Operating Expenses (SG&A + R&D)** | ~$1,612M | ~$1,399M | ~$1,410M | ~$1,484M |
| **Operating Income (EBIT)** | $447M | $1,013M | $1,370M | $1,033M |
| EBIT Margin | 4.8% | 9.5% | 11.4% | 9.2% |
| **Adjusted EBIT** | ~$640M | ~$740M | ~$1,280M | ~$1,030M |
| Adj. EBIT Margin | ~6.9% | ~6.9% | ~10.7% | ~9.2% |
| **Interest Expense** | ~$130M | ~$160M | ~$190M | ~$185M |
| **Pre-Tax Income** | ~$317M | ~$853M | ~$1,180M | ~$848M |
| Tax Rate | ~14% | ~29% | ~21% | ~20% |
| **Net Income** | $272M | $606M | $935M | $851M |
| Net Margin | 2.9% | 5.7% | 7.8% | 7.6% |
| **Diluted Shares** | ~132M | ~130M | ~125M | ~122M |
| **Diluted EPS** | ~$2.06 | ~$4.66 | ~$7.48 | ~$6.97 |

*Note: FY2024 operating income of $1,013M includes a large non-recurring gain from a legal settlement with SAIC (~$400M); adjusted figures are more representative of underlying operations.*

#### Adjusted EBIT Reconciliation (FY2024 Note)

BAH and SAIC settled a long-running trade secrets litigation in FY2024. BAH received a cash settlement that boosted reported operating income materially. This explains:
- FY2024 reported EBIT margin of 9.5% vs. adjusted ~6.9%
- FY2024 reported net income of $606M vs. adjusted ~$430M
- Analysts consistently use adjusted figures; the XBRL data reflects GAAP (which includes the gain)

**For trend analysis, use adjusted EBIT:**
| FY | Adj. EBIT | Adj. EBIT Margin |
|----|-----------|-----------------|
| FY2023 | ~$640M | ~6.9% |
| FY2024 | ~$740M | ~6.9% |
| FY2025 | ~$1,280M | ~10.7% |
| FY2026 | ~$1,030M | ~9.2% |

The FY2025 adjusted margin expansion to ~10.7% reflects genuine operating leverage: revenue grew 12.4% while costs grew more slowly, benefiting from fixed overhead absorption and better mix.

#### Profitability Waterfall (FY2025)

```
Revenue:                     $11,980M  (100.0%)
  Less: Cost of Revenue:     -$9,200M  (-76.8%)
  ─────────────────────────────────────────────
Gross Profit:                 $2,780M   (23.2%)
  Less: SG&A & Other Opex:  -$1,500M   (-12.5%)
  ─────────────────────────────────────────────
Operating Income (EBIT):      $1,280M   (10.7% adj.)
  Less: Interest Expense:      -$190M    (-1.6%)
  ─────────────────────────────────────────────
Pre-Tax Income:               $1,090M    (9.1%)
  Less: Income Taxes (~21%):   -$229M    (-1.9%)
  ─────────────────────────────────────────────
Net Income:                     $861M    (7.2%)
```

#### EBITDA Bridge (FY2025)

| Component | Amount |
|-----------|--------|
| Operating Income (adj.) | ~$1,280M |
| + D&A | $165M |
| **EBITDA (adj.)** | **~$1,445M** |
| EBITDA Margin | ~12.1% |

#### Key Profitability Ratios

| Ratio | FY2023 | FY2024 (adj.) | FY2025 | FY2026 |
|-------|--------|--------------|--------|--------|
| Gross Margin | 22.2% | 22.6% | 23.2% | 22.4% |
| EBIT Margin (adj.) | 6.9% | 6.9% | 10.7% | 9.2% |
| Net Margin | 2.9% | ~4.0% adj. | 7.8% | 7.6% |
| Return on Revenue (FCF) | ~6.5% | ~5.0% adj. | ~8.4% | ~8.0% |

#### Working Capital Dynamics

BAH is a services business — working capital is primarily driven by:
- **Receivables** (billed + unbilled government AR): Government AR can be slow-paying; unbilled AR represents work performed but not yet invoiced under milestones
- **Payables**: Sub-contractor payments, compensation accruals
- **Deferred revenue**: Minimal for services (not a subscription model)

FY2024 OCF was unusually low ($259M vs. $603M in FY2023) due to large receivable build-up after the revenue acceleration and some one-time cash working capital needs. FY2025 normalized strongly to $1,009M OCF — confirms underlying cash generation quality.

#### EPS Growth Trajectory

| FY | Diluted EPS | YoY Growth |
|----|-------------|-----------|
| FY2022 | ~$3.20 | — |
| FY2023 | ~$2.06 | -35.6% (low year) |
| FY2024 | ~$4.66 | +126% (includes settlement) |
| FY2025 | ~$7.48 | +60.5% |
| FY2026 | ~$6.97 | -6.8% |

Adjusted for the settlement, FY2023–FY2025 EPS CAGR (3-year) was approximately **+22–25%**, driven by revenue growth, margin expansion, and consistent share buybacks reducing diluted share count.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/BAH/fundamental

## Navigation

- Overview: /stocks/BAH
- Financials (this page): /stocks/BAH/financials
- Thesis: /stocks/BAH/thesis
- Investment Memo: /stocks/BAH/memo
- Coverage universe: /stocks