Shares of Booz Allen Hamilton (NYSE: BAH) plummeted 5.03% in intraday trading, as investors reacted to the company's disappointing fiscal second-quarter results and reduced full-year outlook. The management consulting firm, which specializes in technology and cybersecurity services, faces headwinds in a challenging market environment.

Booz Allen reported quarterly adjusted earnings per share of $1.49, falling short of the analyst consensus estimate of $1.51. Revenue for the quarter came in at $2.89 billion, down 8.1% year-over-year and missing the street view of $2.99 billion. In light of these results, the company significantly lowered its fiscal 2026 guidance. Booz Allen now expects annual revenue between $11.3 billion and $11.5 billion, down from the previous forecast of $12.00 billion to $12.50 billion. The adjusted EPS outlook was also revised downward to $5.45-$5.65 from $6.20-$6.55 previously.

The earnings miss and reduced guidance triggered a wave of analyst downgrades and price target cuts. Goldman Sachs analyst Noah Poponak maintained a Sell rating on the stock and lowered the price target to $80 from $93. JPMorgan's Seth Seifman kept an Underweight rating while reducing the price target from $122 to $90. Other firms including UBS, TD Cowen, and Truist Securities also slashed their price targets, reflecting growing concerns about the company's near-term prospects. Despite these challenges, Booz Allen's CEO Horacio Rozanski highlighted the company's success in winning new contracts, driven by strong demand for its technologies in cybersecurity, artificial intelligence, and warfighting.