Booz Allen Hamilton reported its fourth-quarter earnings with adjusted earnings per share of $1.61, slightly above the estimated $1.59, but revenue of $2.97 billion missed the consensus estimate of $3.02 billion. The company issued guidance for fiscal year 2026 with adjusted earnings per share between $6.20 and $6.55, below the estimated $6.87, and revenue guidance of $12.0 billion to $12.5 billion, also below the expected $12.8 billion. Nearly all of Booz Allen's revenue is derived from contracts with U.S. government agencies. Following the earnings release, Booz Allen shares declined amid concerns over revenue misses and the impact of federal spending cuts under the Trump administration. In response to these spending reductions, Booz Allen announced plans to reduce its workforce by approximately 7%, or about 2,500 employees, primarily affecting its federal civil business. Separately, the Canada Revenue Agency (CRA) announced it will cut up to 280 permanent jobs, mainly in the Ottawa area, citing fiscal constraints. This reduction is part of a broader trend of federal public service downsizing in Canada, which has seen nearly 10,000 jobs shed over the past year, including more than 6,000 at the CRA.