Defense contractor Booz Allen Hamilton Holding Corp. (NYSE:BAH) stock rose on Friday after the company reported its fiscal third-quarter results.

The company reported quarterly adjusted EPS of $1.77, which topped the analyst consensus estimate of $1.29.

Quarterly sales of $2.62 billion, down by 10.2% year-on-year, missed the street view of $2.75 billion.

The backlog grew by 1.5%, reaching a record $38 billion, while the quarterly book-to-bill ratio stood at 0.3x. Revenue ex-billables declined by 6.7%.

Booz Allen recorded a quarterly operating income of $230 million, down from $291 million a year ago.

As of December 30, the client staff headcount had decreased by around 3,700 compared to the previous year, marking a 11.3% decline.

Booz Allen exited the quarter with cash and equivalents worth $882 million. Long-term debt, net of the current portion, totals $3.86 billion.

Dividend

BAH announced a quarterly dividend of 59 cents (marking a 7% increase) per share payable on March 2, 2026, to stockholders of record on February 13, 2026.

Outlook

Booz Allen now expects fiscal 2026 revenue of $11.300 billion-$11.400 billion (down from prior forecast of $11.300 billion-$11.500 billion) versus the analyst consensus estimate of $11.403 billion.

The company also revised its adjusted EPS outlook to $5.95-$6.15 (up from its prior outlook of $5.45-$5.65), versus the $5.62 analyst consensus estimate.

It reiterated its adjusted EBITDA margin of mid-10%.

Booz Allen’s free cash flow forecast stands at $825 million to $900 million (down from a previous forecast of $850 million to $950 million).

BAH Price Action: Booz Allen Hamilton shares were up 5.58% at $101.10 during premarket trading on Friday, according to Benzinga Pro data.

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