0001628280-26-037521
SEC filingNotes show one segment with $11.2B revenue, $10.7B RPO, $684M remaining buyback, $322M venture capital commitments.
Booz Allen Hamilton Holding Corporation describes itself as "an advanced technology company building products and solutions for government and business." With a history spanning over 112 years, the company underwent a major transformation after 2001 to focus on national security missions, and since 2013 has invested heavily in AI, cyber, quantum, and other emerging technologies. Today, Booz Allen serves a diverse base of federal government and commercial customers in the U.S. and select foreign locations, positioning itself as a leader in the nation's technology ecosystem.
The company operates as a single profit and loss center, with no separate reporting segments disclosed. Its business is organized around customer groups: national security (defense and intelligence) and civil and commercial. This operating model encourages collaboration and allows the firm to bring a mix of talent to each customer engagement.
Booz Allen builds advanced technology products across several domains. Key named products include Vellox, an AI-native cyber product suite; Sit(x)R, EdgeExtend, and the Modular Detachment Kit, which are defense tech products engineered for warfighter readiness. The company also has approximately 400 active AI projects and is a leading federal AI provider. Other capabilities span cyber, quantum, space, 6G, and digital modernization.
The company generates approximately 84% of its revenue from task orders under indefinite delivery/indefinite quantity (IDIQ) contract vehicles, with 2,426 active task orders in fiscal 2026. Its largest IDIQ vehicle accounted for 17% of revenue, and the largest task order under an IDIQ was 4%. The largest definite contract was 1% of revenue. The Department of Veterans Affairs was the single largest customer at 10% of revenue. Booz Allen also serves all six U.S. military branches, the intelligence community, and civil agencies. In the commercial sector, it provides cyber and advanced technology solutions to Fortune 500 and Global 1,000 companies.
The competitive landscape includes large enterprise software companies, large global technology providers, government contractors, large defense contractors, diversified service providers, systems integrators, small businesses, and technology startups. Booz Allen differentiates on innovation, technical expertise, customer relationships, security-cleared talent, and its ability to adapt to government procurement processes.
Booz Allen's growth strategy is encapsulated in the VoLT framework: Velocity (get there first through co-innovation and acquisitions), Leadership (build scaled advanced technology businesses for national priorities), and Technology (differentiate by scaling AI and investing in next-wave technologies like Quantum and 6G). The company also emphasizes strategic partnerships with commercial tech firms and venture capital to accelerate development.
As of March 31, 2026, Booz Allen employed approximately 31,500 people, with 28,800 serving as customer staff. The workforce is highly credentialed: 87% hold bachelor's degrees, 46% master's, and 4% doctoral degrees (voluntary self-reporting). Nearly 30% identify as veterans or individuals with military experience, and 77% hold security clearances. The company invests heavily in upskilling and technical development through programs like Technical Experience Groups (TXGs).
As of March 31, 2026, the company held $728M in cash and cash equivalents, down from $885M a year earlier. Total debt (including current portion) stood at $3,940M, with net debt of $3,212M. The debt structure includes $1,464M in term loans (Term Loan A-1 $714M and A-2 $750M), $2,500M in Senior Notes, and no borrowings under the $1.5B revolving credit facility. The company's leverage ratio remains compliant with covenants. Shareholders' equity increased to $1,105M from $1,003M, driven by net income partly offset by share repurchases and dividends.
The company disclosed $212M in future operating lease payments, with $62M due within one year. Additionally, it has $322M in unfunded capital commitments to two venture capital funds (initiated in fiscal 2026), to be funded over the funds' 10-year terms. Remaining performance obligations (RPO) totaled $10.7B, of which 65% is expected to be recognized in the next 12 months and 75% within 24 months. The provision for claimed costs (government contracting) was $248M as a liability.
During fiscal 2026, the company repurchased 5.6 million shares for $561M, with $684M remaining under the board-authorized program (increased by $500M in October 2025). Dividends totaled $276M ($2.24 per share, up 7.7% from $2.08). Capital expenditures were $90M (0.8% of sales). Debt activity included a $750M Term Loan A-2 issuance and repayment of $750M of Term Loan A-1, plus $62M in other repayments, resulting in a net debt reduction of $62M. Interest expense increased to $212M (from $186M) due to higher debt levels.
The company operates as a single reportable segment, with approximately 98% of revenue from U.S. government contracts. Revenue by contract type: cost-reimbursable (59%), time-and-materials (22%), fixed-price (19%). By customer type: defense (54%), intelligence (17%), civil/commercial (29%). The company acts as prime contractor for 94% of revenue. No further segment-level economics are disclosed.
Booz Allen's revenue is overwhelmingly from U.S. government contracts, making it highly sensitive to budget constraints, mission shifts, and procurement changes. The risk of government shutdowns, debt ceiling impasses, or reduced outsourcing is material. Competitive bidding pressures are acute: protests, alternative contracting (OTA), and bundling of services increase uncertainty. Contract mix trends toward fixed-price raise the risk of cost overruns, especially under inflation or tariff impacts.
The company faces sophisticated cyber threats, including AI-augmented attacks and insider threats. As a cybersecurity provider, any breach could severely damage reputation and eligibility for contracts. Evolving AI use introduces regulatory, IP, and operational risks (biased outputs, competition). Compliance with CMMC, NIST, and data privacy laws (GDPR, state laws) adds ongoing costs.
Stringent procurement laws (FAR, False Claims Act) expose to audits and potential suspension/debarment. The DCAA has disallowed some costs, leading to a $248M reserve. Organizational conflict of interest rules and small business set-asides may limit bidding opportunities. Tax law changes (e.g., R&D capitalization) and climate regulations also pose risks.
Significant debt ($1.5B term loan plus revolving credit) creates interest rate exposure; each quarter-point shift alters annual interest by $3M. Covenants restrict operations. The holding company structure depends on subsidiary dividends. Goodwill of $2.4B could be impaired under adverse conditions.
Talent competition for cleared personnel is intense; security clearance delays or revocations could impair contract performance. Employee misconduct or subcontractor failures could lead to termination or reputational harm. Growth via acquisitions or new service offerings carries integration and execution risks.
Geopolitical conflicts (Eastern Europe, Middle East) and trade tensions (tariffs, sanctions) could disrupt operations or increase costs. Inflation erodes fixed-price contract margins. Climate change may cause physical disruptions and regulatory burdens.
No cash flow statement data was included in the document excerpt. Therefore, analysis of CFO, capex, or capital returns is not possible.