Booz Allen Boosts Profit Outlook as Cost Cuts Take Hold — Update

By Nicholas G. Miller

Booz Allen Hamilton raised its profit outlook for the fiscal year as its cost-saving efforts, prompted by the Trump administration's cuts to government-contract funding for consultants, begin to boost its bottom line.

The company on Friday reported third-quarter net income of $200 million, or $1.63 a share, up from $187 million, or $1.45 a share, the year prior.

Adjusted earnings were $1.77 a share. Analysts polled by FactSet expected $1.29 a share.

Revenue fell 10% to $2.62 billion, with the company indicating part of the decline was due to the recent government shutdown. Wall Street expected $2.75 billion.

The company boosted its fiscal-year adjusted earnings guidance to $5.95 to $6.15 a share, up from its previous forecast of $5.45 to $5.65 a share. It updated its revenue outlook to $11.3 billion to $11.4 billion, compared with its previous forecast of $11.3 billion to $11.5 billion. Analysts see fiscal-year revenue of $11.4 billion and adjusted earnings of $5.62 a share.

The company cut thousands of jobs last year due to contract reductions in the company's civil business. The Trump administration has cut spending on federal contracts and specifically has pushed consulting companies, including Booz Allen, to justify their work and propose substantial cost savings.

Booz Allen, which has in the past made 98% of its $12 billion in annual revenue from government-related work, said in October it would restructure its business to cut $150 million in costs.

The company had seen particular declines in its civil business, while its national-security division remained strong due to continued demand for cybersecurity, artificial intelligence and war technologies.

But on Friday the company said it was now seeing demand strengthen across both businesses.

Shares rose 6.5% to $102.01 in premarket trading after sinking 30% over the past 12 months as of Thursday's close.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

January 23, 2026 07:34 ET (12:34 GMT)