Shares of Booz Allen Hamilton (NYSE: BAH) soared 6.15% in pre-market trading on Friday following the release of its first-quarter fiscal year 2026 results. The defense contractor and consulting firm reported adjusted earnings per share of $1.48, surpassing analyst expectations of $1.45, despite a slight revenue miss.

While quarterly revenue of $2.92 billion fell short of the $2.95 billion estimate, investors were impressed by the company's strong backlog growth. Booz Allen reported a record Q1 backlog of $38 billion, representing a 10.7% increase year-over-year. The quarterly book-to-bill ratio stood at an impressive 1.42x, indicating robust future revenue potential.

The company reaffirmed its fiscal 2026 guidance, maintaining its revenue outlook of $12.00 billion to $12.50 billion and adjusted EPS range of $6.20 to $6.55. Notably, Booz Allen anticipates a $200 million federal cash tax benefit in FY26 from new S174 rules, which likely contributed to investor optimism. The firm's strong performance in defense and intelligence markets, coupled with recent analyst upgrades, further fueled the stock's pre-market rally.