Government & Technical Consulting Stocks Q3 Teardown: Jacobs Solutions (NYSE:J) Vs The Rest

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the government & technical consulting industry, including Jacobs Solutions 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 Q3. As a group, revenues were in line with analysts’ consensus estimates.

Thankfully, share prices of the companies have been resilient as they are up 9.8% on average since the latest earnings results.

Jacobs Solutions

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

Jacobs Solutions reported revenues of $3.15 billion, up 6.6% year on year. This print exceeded analysts’ expectations by 0.7%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates.

Jacobs' Chair and CEO Bob Pragada commented, "We are pleased to have met or exceeded all our key metrics for FY25. We grew revenue organically mid-single-digits year-over-year and expanded our operating margin meaningfully. The Life Sciences, Data Center, Water, Energy & Power and Transportation sectors drove Infrastructure & Advanced Facilities' (I&AF) revenue growth in FY25, and we anticipate these sectors will remain strong in FY26 and beyond. Additionally, PA Consulting saw revenue growth accelerate during the fiscal year, contributing positively to consolidated results. We enter FY26 with multiple secular tailwinds, clear line-of-sight to continued synergistic expansion with PA Consulting and a record backlog, positioning us for profitable growth."

Unsurprisingly, the stock is down 6.6% since reporting and currently trades at $135.42.

Read our full report on Jacobs Solutions here, it’s free.

Best Q3: UL Solutions

Founded in 1894 as a response to the growing dangers of electricity in American homes and businesses, UL Solutions 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 9.7% since reporting. It currently trades at $70.95.

Weakest Q3: ICF International

Operating at the intersection of policy, technology, and implementation for over five decades, ICF International 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 in the group. Interestingly, the stock is up 6.9% since the results and currently trades at $91.37.

Read our full analysis of ICF International’s results here.

Maximus

With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus 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 number came in 1.7% below analysts' expectations. Overall, it was a slower quarter as it also produced 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 20.9% since reporting and currently trades at $94.01.

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

Booz Allen Hamilton

With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches.

Booz Allen Hamilton reported revenues of $2.62 billion, down 10.2% year on year. This result missed analysts’ expectations by 3.8%. Taking a step back, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but a significant miss of analysts’ revenue estimates.

Booz Allen Hamilton pulled off the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 7.4% since reporting and currently trades at $88.70.

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