The end of America's budget euphoria penalizes defense and consulting

Booz Allen Hamilton, a leading management consulting firm, faces financial challenges due to restructuring and declining revenues, particularly in its civil business division. The firm laid off 3,000 employees and plans $150m in annual savings. Despite generating $395m in cash in Q2 and having a solid order book, its share price has halved, and revenue is expected to decline for the first time in ten years. The civil business contraction impacts growth and margins, with potential improvement expected by fiscal 2027.