Looking back on government & technical consulting stocks’ Q1 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 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. On average, they are relatively unchanged 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 $1.88 billion, up 1.6% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ full-year EPS guidance estimates.
Unsurprisingly, the stock is down 12.5% since reporting and currently trades at $100.99.
Read our full report on SAIC 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 delivered the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 4.3% since reporting. It currently trades at $70.08.
Is now the time to buy Maximus? Access our full analysis of the earnings results here, it’s free.
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, falling short of analysts’ expectations by 1.8%. It was a disappointing quarter as it posted 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 in the group. As expected, the stock is down 21% since the results and currently trades at $101.93.
Read our full analysis of Booz Allen Hamilton’s results here.
NV5 Global (NASDAQ:NVEE)
Operating from over 100 locations across the U.S. and internationally, NV5 Global (NASDAQ:NVEE) provides engineering, environmental, geospatial, and technical consulting services to public and private sector clients for infrastructure and building projects.
NV5 Global reported revenues of $234 million, up 10.1% year on year. This print topped analysts’ expectations by 2.4%. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts’ full-year EPS guidance estimates but a significant miss of analysts’ EPS estimates.
NV5 Global achieved the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 20.2% since reporting and currently trades at $22.12.
Read our full, actionable report on NV5 Global 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 number met analysts’ expectations. It was a strong quarter as it also recorded a solid beat of analysts’ EPS estimates.
The stock is up 18.8% since reporting and currently trades at $71.12.
Read our full, actionable report on UL Solutions here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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