As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the government & technical consulting industry, including Maximus (NYSE: MMS) 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.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

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. This print exceeded analysts’ expectations by 2.5%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.

“Our third quarter results reflect once again the resilience of our business model that is underpinned by consistent delivery at scale of critical government services,” said Bruce Caswell, President and Chief Executive Officer.

Maximus pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 19.4% since reporting and currently trades at $89.29.

Is now the time to buy Maximus? Access our full analysis of the earnings results here, it’s free.

Jacobs Solutions (NYSE: J)

With a workforce of approximately 45,000 professionals tackling complex challenges from water scarcity to cybersecurity, Jacobs Solutions (NYSE: J) provides engineering, consulting, and technical services focused on infrastructure, sustainability, and advanced technology solutions.

Jacobs Solutions reported revenues of $3.03 billion, up 5.1% year on year, falling short of analysts’ expectations by 0.9%. However, the business still had a satisfactory quarter with a solid beat of analysts’ backlog estimates.

The market seems happy with the results as the stock is up 6.4% since reporting. It currently trades at $148.97.

Is now the time to buy Jacobs Solutions? 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 9.9% since the results and currently trades at $22.82.

Read our full analysis of Amentum’s results here.

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 lagged analysts' expectations by 5.1%. Taking a step back, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations significantly.

SAIC had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is down 14.2% since reporting and currently trades at $97.72.

Read our full, actionable report on SAIC here, it’s free.

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 $476.2 million, down 7% year on year. This number came in 1% below analysts' expectations. Overall, it was a mixed quarter for the company.

ICF International had the slowest revenue growth among its peers. The stock is up 10.5% since reporting and currently trades at $93.10.

Read our full, actionable report on ICF International here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.