Shares of Booz Allen Hamilton (NYSE: BAH) tumbled 7.76% in pre-market trading on Friday following the release of its second-quarter fiscal 2026 results that fell short of analyst expectations and a downward revision to its full-year guidance.

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

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

However, investors seemed more focused on the company's adjusted full-year outlook. Booz Allen Hamilton now expects fiscal year 2026 revenue in the range of $11.3 billion to $11.5 billion, which appears to be lower than previous guidance. The company stated that the revised outlook reflects the "current environment," suggesting ongoing challenges in its operating landscape.

The pre-market stock plunge indicates that investors are concerned about the company's near-term growth prospects and its ability to navigate the current funding slowdown, particularly in its civil business segment which is experiencing a delayed recovery.