Booz Allen Hamilton Holding Corp.’s shares dropped in premarket trading after the company issued a revised fiscal 2026 outlook and announced layoffs amid government cost-cutting efforts. The firm projected adjusted earnings per share between $6.20 and $6.55 on revenue of $12 billion to $12.5 billion, which was below analyst expectations.
CEO Horacio Rozanski attributed the soft outlook to the Trump administration’s focus on cutting costs in civilian agencies. Booz Allen plans to restructure its civil business with cost reductions and layoffs, largely focused on reducing staff by 7% in the first quarter. This would impact around 2,500 employees out of approximately 35,800.
The company reported a 7% year-over-year increase in revenue for the fourth quarter, reaching $2.97 billion. Despite this, shares were down over 12% before opening, with little change since the start of the year.
Source: https://www.investopedia.com/booz-allen-hamilton-q4-fy2025-results-11740187