Looking back on government & technical consulting stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including SAIC (NASDAQ: SAIC) and its peers.
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 7 government & technical consulting stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.
While some government & technical consulting stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.5% since the latest earnings results.
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 $1.77 billion, down 2.7% year on year. This print fell short of analysts’ expectations by 5.1%. Overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations.
SAIC delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 14.7% since reporting and currently trades at $97.15.
Is now the time to buy SAIC? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $1.35 billion, up 2.5% year on year, outperforming analysts’ expectations by 2.5%. The business had an exceptional quarter with a beat of analysts’ EPS and 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 17.3% since reporting. It currently trades at $87.74.
Is now the time to buy Maximus? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Amentum (NYSE: AMTM)
With operations spanning approximately 80 countries and a workforce of specialized engineers and technical experts, Amentum Holdings (NYSE: AMTM) provides advanced engineering and technology solutions to U.S. government agencies, allied governments, and commercial enterprises across defense, energy, and space sectors.
Amentum reported revenues of $3.56 billion, up 2% year on year, exceeding analysts’ expectations by 1.5%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
As expected, the stock is down 11.7% since the results and currently trades at $22.36.
Read our full analysis of Amentum’s results here.
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 $2.92 billion, flat year on year. This print lagged analysts' expectations by 0.6%. Taking a step back, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but full-year EPS guidance in line with analysts’ estimates.
The stock is down 15.2% since reporting and currently trades at $97.54.
Read our full, actionable report on Booz Allen Hamilton 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 $776 million, up 6.3% year on year. This result surpassed analysts’ expectations by 0.6%. Zooming out, it was a slower quarter as it logged EPS in line with analysts’ estimates.
UL Solutions scored the fastest revenue growth among its peers. The stock is down 6.3% since reporting and currently trades at $68.52.
Read our full, actionable report on UL Solutions here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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