Booz Allen’s $11B Government Gravy Train Hangs In Trump’s Crosshairs
Talk about putting all your eggs in one basket — government contractor Booz Allen Hamilton derives 98% of its revenue from Uncle Sam’s coffers. Now, a bombshell federal chopping block demands that US agencies urgently justify spending $65B+ this year on consulting firms — with already plummeting 25.1% since Trump’s election.
- The GSA-issued memo will scrutinize contracts from ten firms, like Accenture, Deloitte, and IBM — with Leidos standing as the second most exposed, falling 21.6% post-election amid its 87% government-derived revenue.
- “We are not in the business of writing PowerPoints, … [but] writing code,” insists Booz Allen’s CEO — with the contractor involved in managing national park websites, modernizing veterans’ healthcare records, and deploying AI throughout the Defense Department.
The tech tale: While Booz Allen’s government dependency looks risky on paper, CEO Horacio Rozanski believes that “in the long term, we are really well aligned” — with 70% of employees now in technology roles (vs. 20% in 2012). Having weathered presidential transitions before, Rozanski bets that Trump’s smaller-government vision creates more demand for tech solutions — like the AI and cybersecurity that Booz Allen specializes in.
