Booz Allen Hamilton reported fiscal third-quarter earnings per share of $1.77 on revenue of $2.6 billion, topping Wall Street’s consensus of $1.27 per share on sales of $2.7 billion. The beat was driven by higher-margin consulting work in cyber and AI, which grew 14% year-over-year, offsetting a 3% decline in legacy government-contract services following the Trump administration’s budget cuts. The stock jumped over 5% in the session following the announcement, recouping losses suffered during the prior quarter’s DOGE-related volatility.

In its earnings release, Booz Allen lifted its full-year adjusted EPS guidance by 10 cents to a range of $5.40–$5.50, citing the realization of $120 million in cost reductions implemented after the U.S. government scaled back consultant spending. CEO Horacio Rozanski highlighted that streamlined operations and headcount optimization have improved operating margins by 120 basis points so far in fiscal 2026, positioning the firm to reinvest in high-growth technology capabilities.

Ahead of the quarter’s close, Booz Allen announced a collaboration with Andreessen Horowitz to co-develop advanced government AI applications. In response, Citi analyst John Godyn maintained a Neutral rating but raised his price target from $93 to $109, citing a strengthened growth pipeline. Jefferies kept a Hold rating with a target of $95, while UBS trimmed its target to $93 but affirmed market-weight. Conversely, Goldman Sachs and JP Morgan reiterated Sell and Underweight ratings with targets of $80 and $90, respectively, reflecting divergent views on the sustainability of margin expansion.