09:07 AM EST, 01/23/2026 (MT Newswires) -- Booz Allen Hamilton ( BAH ) raised its full-year earnings outlook on Friday as the technology and management consulting firm's bottom line unexpectedly increased year over year in the fiscal third quarter.

The company now anticipates adjusted earnings to be in a range of $5.95 to $6.15 per share for fiscal 2026, up from its previous projections of $5.45 to $5.65. The current consensus on FactSet is for non-GAAP EPS of $5.62. The stock advanced 6.7% in the most recent premarket activity.

"We expect quarter four funding to improve over quarter three, but remain slower than usual," Chief Operating Officer Kristine Anderson said during an earnings call, according to a FactSet transcript. "We will continue running the business effectively and efficiently."

Revenue is pegged at $11.3 billion to $11.4 billion for the ongoing fiscal year, compared with the prior guidance of $11.3 billion to $11.5 billion, reflecting "some of the impacts from the prolonged government shutdown," according to Anderson. The revised forecast reflects an annual decline of 5% to 6%, compared with previous estimates for a decrease of 4% to 6%. The Street is looking for $11.4 billion.

Booz Allen reported adjusted EPS of $1.77 for the December quarter, up from $1.55 the year before, defying the average analyst estimate for a drop to $1.29. However, revenue fell 10% to $2.62 billion, below the Street's view for $2.75 billion. Excluding billable expenses, revenue declined 6.7% to $1.85 billion.

The record-long federal government shutdown, which ended in November, impacted the company's revenue in the quarter, Chief Financial Officer Matt Calderone said on the call. "We lost some revenue due to work not performed and we also saw some revenue push from (the third quarter) to (the fourth quarter) given timing delays and billable expenses," according to Calderone.

Defense revenue remained nearly flat at $1.45 billion, while civil slipped to $732 million from $1.01 billion last year. Intelligence revenue decreased to $434 million from $452 million in the prior-year quarter.

"We successfully navigated through both the government shutdown and significant cost actions in the quarter," Calderone told analysts. "The shutdown pushed some procurements and funding actions to the right."