Shares of Booz Allen Hamilton (NYSE: BAH) tumbled 7.76% in pre-market trading on Friday following the release of the company's second-quarter fiscal 2026 earnings report, which fell short of analysts' expectations and included a downward revision to its full-year outlook.

The advanced technology consulting firm reported adjusted earnings per share of $1.49, missing the consensus estimate of $1.51. Revenue for the quarter came in at $2.89 billion, falling short of the anticipated $2.99 billion. The company cited a "continued funding slowdown" as a key factor impacting its top and bottom-line performance.

In light of the challenging environment, Booz Allen Hamilton adjusted its full-year revenue guidance to a range of $11.3 billion to $11.5 billion, down from previous estimates. The company also lowered its full-year adjusted earnings per share outlook to between $5.45 and $5.65, compared to earlier projections and the FactSet consensus of $6.30.

Despite the disappointing quarterly results, Booz Allen Hamilton reported some positive developments. The company achieved a record second-quarter backlog of $40 billion and a quarterly book-to-bill ratio of 1.7, indicating strong future demand for its services. Additionally, the firm highlighted solid growth across its national security portfolio, although its civil business is experiencing a delayed recovery.

The significant pre-market drop in Booz Allen Hamilton's stock price reflects investors' concerns about the company's near-term growth prospects and the broader challenges facing the consulting and technology services sector. As the market digests this information, traders will be closely watching for any further guidance or commentary from the company's management regarding strategies to navigate the current funding environment and return to stronger growth.