The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Booz Allen Hamilton (NYSE: BAH) and the rest of the government & technical consulting stocks fared in Q1.
The sector has historically benefitted from steady government spending on defense, infrastructure, and regulatory compliance, providing firms long-term contract stability. However, the Trump administration is showing more willingness than previous administrations to upend government spending and bloat. Whether or not defense budgets get cut, the rising demand for cybersecurity, AI-driven defense solutions, and sustainability consulting should benefit the sector for years, as agencies and enterprises seek expertise in navigating complex technology and regulations. Additionally, industrial automation and digital engineering are driving efficiency gains in infrastructure and technical consulting projects, which could help profit margins.
The 8 government & technical consulting stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.6%.
In light of this news, share prices of the companies have held steady as they are up 1% on average since the latest earnings results.
Weakest Q1: Booz Allen Hamilton (NYSE: BAH)
With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton (NYSE: BAH) provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches.
Booz Allen Hamilton reported revenues of $2.97 billion, up 7.3% year on year. This print fell short of analysts’ expectations by 1.8%. Overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ full-year EPS guidance estimates.
Booz Allen Hamilton delivered the weakest full-year guidance update of the whole group. The stock is down 20.5% since reporting and currently trades at $102.55.
Is now the time to buy Booz Allen Hamilton? Access our full analysis of the earnings results here, it’s free.
Best Q1: Maximus (NYSE: MMS)
With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE: MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally.
Maximus reported revenues of $1.36 billion, flat year on year, outperforming analysts’ expectations by 5.2%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.
Maximus achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 5.5% since reporting. It currently trades at $70.93.
Is now the time to buy Maximus? Access our full analysis of the earnings results here, it’s free.
SAIC (NASDAQ: SAIC)
With over five decades of experience supporting national security missions, Science Applications International Corporation (NASDAQ: SAIC) provides technical, engineering, and enterprise IT services primarily to U.S. government agencies and military branches.
SAIC reported revenues of $1.88 billion, up 1.6% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates and a slight miss of analysts’ full-year EPS guidance estimates.
As expected, the stock is down 11.1% since the results and currently trades at $102.61.
Read our full analysis of SAIC’s results here.
ICF International (NASDAQ: ICFI)
Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ: ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors.
ICF International reported revenues of $487.6 million, down 1.4% year on year. This print met analysts’ expectations. It was a very strong quarter as it also logged a solid beat of analysts’ EPS estimates.
ICF International had the slowest revenue growth among its peers. The stock is down 2.1% since reporting and currently trades at $83.42.
Read our full, actionable report on ICF International here, it’s free.
UL Solutions (NYSE: ULS)
Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions (NYSE: ULS) provides testing, inspection, and certification services that help companies ensure their products meet safety, security, and sustainability standards.
UL Solutions reported revenues of $705 million, up 5.2% year on year. This result was in line with analysts’ expectations. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ EPS estimates.
The stock is up 20.3% since reporting and currently trades at $72.
Read our full, actionable report on UL Solutions here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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