Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at SAIC (NASDAQ: SAIC) and the best and worst performers in the government & technical consulting industry.

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 slower Q3. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 3.3% on average 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 $1.87 billion, down 5.6% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.

SAIC scored the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 16.8% since reporting and currently trades at $102.20.

Is now the time to buy SAIC? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $783 million, up 7.1% year on year, outperforming analysts’ expectations by 1.5%. The business had a very strong quarter with a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.5% since reporting. It currently trades at $76.68.

Is now the time to buy UL Solutions? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: 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 $465.4 million, down 10% year on year, falling short of analysts’ expectations by 3.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

ICF International delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is flat since the results and currently trades at $85.41.

Read our full analysis of ICF International’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 $2.89 billion, down 8.1% year on year. This print came in 2.7% below analysts' expectations. It was a softer quarter as it also logged a significant miss of analysts’ revenue estimates and a significant miss of analysts’ organic revenue estimates.

The stock is down 13.3% since reporting and currently trades at $86.97.

Read our full, actionable report on Booz Allen Hamilton here, it’s free for active Edge members.

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 $1.32 billion, flat year on year. This result lagged analysts' expectations by 1.7%. Overall, it was a slower quarter as it also recorded full-year revenue guidance missing analysts’ expectations significantly and a miss of analysts’ revenue estimates.

Maximus had the weakest full-year guidance update among its peers. The stock is up 13.4% since reporting and currently trades at $88.21.

Read our full, actionable report on Maximus here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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