By Connor Hart

Booz Allen Hamilton cut its outlook for the year after posting lower profit and revenue in its fiscal second quarter, hurt by a continued slowdown in funding.

The consulting firm, which makes 98% of its $12 billion in annual revenue from government-related work, now expects adjusted earnings of $5.45 to $5.65 a share. Revenue is projected to fall 4% to 6% year-over-year, to between $11.3 billion and $11.5 billion.

Booz Allen had previously guided for adjusted earnings of $6.20 to $6.55 a share, and for revenue to be flat to up 4% this year, to between $12 billion and $12.5 billion. Analysts surveyed by FactSet are looking for adjusted earnings of $6.30 a share and revenue of $12.06 billion.

Shares tumbled 11% to $89.50 in premarket trading Friday.

Chief Executive Horacio Rozanski said the company continues to win work and experience strong demand for its cyber, artificial intelligence and warfighting technologies. Still, he added the market is bifurcated, and that new full-year outlook reflects the current environment.

For its three months ended Sept. 30, Booz Allen reported a profit of $175 million, or $1.42 a share, down from $390 million, or $3.01 a share, in the same quarter last year.

Stripping out certain one-time items, adjusted earnings were $1.49 a share. Analysts polled by FactSet had expected $1.51 a share.

Revenue fell 8.1% to $2.89 billion, below the $2.97 billion that Wall Street had modeled.

The McLean, Va., company earlier this year found itself in the crosshairs of the Trump administration and disclosed plans to cut roughly 2,500 jobs, amid a slowdown in government spending and plans to cut spending on federal contracts.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

October 24, 2025 07:05 ET (11:05 GMT)

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