MCLEAN, Va. — Booz Allen Hamilton said Friday that demand for artificial intelligence, cybersecurity and defense modernization continues to fuel growth, as the consulting firm reported stronger quarterly results and reaffirmed its outlook for the year.

Revenue increased as federal agencies and commercial clients continued investing in AI, digital transformation and national security programs, helping offset broader uncertainty across the consulting industry. The company said its backlog remained strong, reflecting continued demand for technology-driven government contracts.

For businesses, the results reinforce that AI spending is extending well beyond chipmakers and cloud providers. Companies that build software, provide consulting services, strengthen cybersecurity or help organizations deploy AI tools are continuing to benefit as both governments and private-sector customers accelerate modernization efforts.

Investors also viewed the report as another indication that federal technology spending remains resilient despite budget pressures in Washington. Booz Allen’s growing pipeline of AI-related work suggests government agencies continue prioritizing investments in automation, data analytics and cyber defense.

The results come as businesses across multiple industries reassess technology budgets, with many shifting spending away from experimental AI projects and toward applications that can deliver measurable productivity gains and operational savings.

Booz Allen said it expects demand for AI-enabled consulting, cybersecurity and digital engineering services to remain strong through the remainder of the year as organizations continue modernizing critical infrastructure and operations.

JBizNews Desk | Wall Street

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