Booz Allen Cuts Jobs, Fiscal-Year Outlook as Government Funding Stalls

Core Insights - Booz Allen reported a profit of $175 million, or $1.42 per share, for the three months ended September 30, with adjusted earnings of $1.49 per share after excluding one-time items [1] - The company has lowered its outlook for the year due to a significant slowdown in government contract funding, particularly in its civil sector [2][3] Financial Performance - Adjusted earnings are now expected to be between $5.45 and $5.65 per share, with revenue projected to decline by 4% to 6% year-over-year, amounting to between $11.3 billion and $11.5 billion [5] - Previously, the company had guided for adjusted earnings of $6.20 to $6.55 per share and revenue to be flat to up 4%, between $12 billion and $12.5 billion [6] Business Segments - The civil business is facing severe challenges, with anticipated revenue decline in the low-20% range this year, and no expected growth for several quarters [3] - In contrast, the national security portfolio, which includes defense and intelligence markets, is performing better due to strong demand for cybersecurity, artificial intelligence, and war-fighting technologies [4] Strategic Response - To address current challenges, the company plans to restructure its business to cut $150 million in costs and focus on growth potential in certain business lines [7]