Raymond James Downgrades Booz Allen on Weak Outlook, Margin Pressures

Raymond James downgraded Booz Allen Hamilton Holding Corporation (NYSE:BAH) from Outperform to Market Perform on May 24, without a price target, following the company’s dismal financial performance and outlook.

Booz Allen Hamilton Holding Corporation (NYSE:BAH) was forced to contend with harsh year-over-year comparisons, with its organic growth rate expected to decline from around 12% last year to approximately 3% this year.

This deceleration is ascribed to a higher concentration of civil government contracts and the robust performance in the prior period, making growth harder to match. The company’s announcement of a 7% headcount reduction for the first quarter of 2026 served as additional proof of this.

Moreover, analysts at Raymond James noted that Booz Allen Hamilton’s profit margins are being squeezed by the company’s ongoing investments in long-term growth areas. Considering this, the firm has adjusted Booz Allen Hamilton’s financial projections for fiscal years 2026 and 2027, with the updated outlook indicating that the stock might return to its late February lows.

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Read More: 10 Defensive Stocks Billionaire Ken Fisher Is Betting On and 10 Best Stocks to Buy According to Billionaire Steve Cohen.

Disclosure: None.