Booz Allen Hamilton's stock surged 6.16% during intraday trading on Friday, fueled by a stronger-than-expected fiscal first-quarter earnings report and signs of accelerating demand in its national security division. The rally extends pre-market gains after the consulting and IT services firm posted adjusted earnings per share that significantly exceeded analyst forecasts.

The company reported adjusted EPS of $1.81 for the quarter, a 22.3% increase from the prior year and well above the consensus estimate of $1.48. While revenue of $2.8 billion slightly missed expectations, the profit beat, a 1.5x book-to-bill ratio, and a 3% rise in total backlog to $39 billion reassured investors about the health of the underlying business. Management also highlighted that demand is accelerating across its national security portfolio, which is pivoting toward advanced cyber and defense technologies.

Booz Allen also maintained its full-year guidance, projecting adjusted EPS of $6.00 to $6.35 on revenue of $11.2 billion to $11.7 billion. This steady outlook, combined with the strong operational metrics like a doubling of free cash flow to $261 million and improved adjusted EBITDA margins, appeared to offset concerns about a 26.9% drop in net income and ongoing challenges in the civil business segment.