Looking back on government & technical consulting stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including UL Solutions (NYSE:ULS) 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 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 3.1% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 1.5%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $78.74.
Is now the time to buy UL Solutions? Access our full analysis of the earnings results here, it’s free for active Edge members.
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, in line with analysts’ expectations. The business had a very strong quarter 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 among its peers. The market seems happy with the results as the stock is up 15.1% since reporting. It currently trades at $100.74.
Is now the time to buy SAIC? 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 and 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 $85.84.
Read our full analysis of ICF International’s results here.
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 print missed analysts’ expectations by 1.7%. 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 12.2% since reporting and currently trades at $87.26.
Read our full, actionable report on Maximus here, it’s free for active Edge members.
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 $3.15 billion, up 6.6% year on year. This number beat analysts’ expectations by 0.7%. Aside from that, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates.
The stock is down 8.1% since reporting and currently trades at $133.30.
Read our full, actionable report on Jacobs Solutions here, it’s free for active Edge members.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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