Press Release: Defense Tech Stocks Move Higher As -2

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

Luckily, government & technical consulting stocks have performed well with share prices up 10.4% on average since the latest earnings results.

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 print fell short of analysts’ expectations by 1.7%. Overall, it was a slower quarter for the company with full-year revenue guidance missing analysts’ expectations significantly and a miss of analysts’ revenue estimates.

"Fiscal 2025 was a year of significant achievement for Maximus, as our teams skillfully navigated shifting priorities, seized opportunities to step up for our customers, and ultimately delivered revenue growth and profitability well above our expectations at the beginning of the fiscal year," said Bruce Caswell, President and Chief Executive Officer.

Maximus delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 21.9% since reporting and currently trades at $94.82.

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 8.2% since reporting. It currently trades at $72.16.

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 8.1% since the results and currently trades at $92.40.

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

SAIC

With over five decades of experience supporting national security missions, Science Applications International Corporation 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 result met analysts’ expectations. Overall, it was a very strong quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.

The stock is up 18.3% since reporting and currently trades at $103.59.

Read our full, actionable report on SAIC 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 print came in 3.8% below analysts' expectations. Taking a step back, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but a significant miss of analysts’ revenue estimates.

Booz Allen Hamilton achieved the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 5% since reporting and currently trades at $90.98.

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