09:57 AM EDT, 05/23/2025 (MT Newswires) -- Booz Allen Hamilton ( BAH ) on Friday provided a full-year outlook below market estimates amid the Trump administration's focus on lowering government spending, while the consulting firm said it will lay off staff to match expected demand levels.

The company anticipates adjusted earnings of $6.20 to $6.55 per share for fiscal 2026 on revenue between $12 billion and $12.5 billion. The current consensus on FactSet is for non-GAAP EPS of $6.88 and sales of $12.82 billion. In the previous fiscal year, adjusted EPS climbed 16% to $6.35 while revenue improved 12% to $11.98 billion.

Shares of Booz Allen Hamilton ( BAH ) declined 15% in Friday trade.

Th firm is among 10 companies impacted by a federal government review aimed at saving US taxpayer money, the Financial Times reported.

"The run rate on five large technology contracts has been reduced significantly in support of the (Trump) administration's desire to reduce spending overall," Chief Executive Horacio Rozanski said on an earnings conference call, according to a FactSet transcript. "This slowdown coincided with the ending of a large technology contract."

Booz Allen expects to see a 7% reduction in its staff in the first quarter, "very heavily concentrated" in its civil business, Chief Financial Officer Matt Calderone told analysts.

"We are making targeted cost and head count reductions to match anticipated demand," Rozanski said. "These are a combination of reductions in bench, delayering of management and adjusting our infrastructure."

At the end of March, the company's total headcount was 35,800 versus 34,300 a year ago.

Booz Allen's adjusted EPS grew 21% to $1.61 for the March quarter, in line with the Street's view. Revenue advanced 7.3% to $2.97 billion, but trailed the average analyst estimate of $3.03 billion.

Defense revenue rose to $1.53 billion from $1.34 billion, while civil fell to $989 million from $992 million on a yearly basis.