v3.26.1
Revenue and Contract Balances
 6 Months Ended
Mar. 29, 2026
Revenue from Contract with Customer [Abstract]  
Revenue and Contract Balances Revenue and Contract Balances
We disaggregate revenue by client sector and contract type, as we believe it best depicts how the nature, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following tables present our revenue disaggregated by client sector and contract type (in thousands):
 Three Months EndedSix Months Ended
 March 29,
2026		March 30,
2025		March 29,
2026		March 30,
2025
Client Sector:  
U.S. federal government (1)
$312,120 $413,422 $584,718 $915,270 
U.S. state and local government176,495 207,438 347,968 410,425 
U.S. commercial206,843 211,085 432,195 444,676 
International (2)
524,699 490,168 1,065,939 972,303 
Total$1,220,157 $1,322,113 $2,430,820 $2,742,674 
Contract Type:
Fixed-price$587,074 $524,950 $1,159,516 $1,044,772 
Time-and-materials522,158 605,258 1,065,256 1,204,206 
Cost-plus110,925 191,905 206,048 493,696 
Total$1,220,157 $1,322,113 $2,430,820 $2,742,674 
(1)    Includes revenue generated under U.S. federal government contracts performed outside the United States.
(2)    Includes revenue generated from non-U.S. clients, primarily in Australia, Canada and the United Kingdom.
Other than the U.S. federal government, no single client accounted for more than 10% of our revenue for the three and six months ended March 29, 2026 and March 30, 2025.
Contract Assets and Contract Liabilities
We invoice customers based on the contractual terms of each contract. However, the timing of revenue recognition may differ from the timing of invoice issuance. Contract assets represent revenue recognized in excess of the amounts for which we have the contractual right to bill our customers. Such amounts are recoverable from customers based upon various measures of performance, including achievement of certain milestones or completion of a contract. In addition, many of our time-and-materials arrangements are billed in arrears pursuant to contract terms that are standard within the industry, resulting in contract assets and/or unbilled receivables being recorded, as revenue is recognized in advance of billings. Contract retentions, included in contract assets, represent amounts withheld by clients until certain conditions are met or the project is completed, which may extend beyond one year.
Contract liabilities consist of billings in excess of revenue recognized. Contract liabilities decrease as we recognize revenue from the satisfaction of the related performance obligation and increase as billings in advance of revenue recognition occur. Contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. There were no substantial non-current contract assets for the periods presented. Net contract assets/liabilities consisted of the following (in thousands):
As of
March 29,
2026		September 28, 2025
Contract assets (1)
$146,455 $138,232 
Contract liabilities - current
(410,858)(420,254)
Contract liabilities - non-current (2)
(2,917)(2,628)
Net contract liabilities$(267,320)$(284,650)
(1)    Includes $10.7 million and $12.8 million of contract retentions at March 29, 2026 and September 28, 2025, respectively.
(2)    Reported under "Other non-current liabilities" on our consolidated balance sheet as of March 29, 2026 and September 28, 2025.
For the first halves of fiscal 2026 and 2025, we recognized revenue of approximately $230 million and $175 million, respectively, from the amounts included in the contract liability balances at the end of fiscal 2025 and 2024, respectively.
Revenue is recognized by measuring progress over time under Accounting Standards Codification Topic 606, "Revenue from Contracts with Customers". We estimate and measure progress on our contracts over time whereby we compare our total costs incurred on each contract as a percentage of the total expected contract costs. Changes in those estimates could result in the recognition of cumulative catch-up adjustments to the contract’s inception-to-date revenue, costs and profit in the period in which such changes are made. As a result, for the second quarters and first halves of fiscal 2026 and 2025, we recognized net favorable revenue and operating income adjustments of approximately $14 million and $4 million, respectively, and $32 million and $7 million respectively.
Accounts Receivable, Net
Net accounts receivable consisted of the following (in thousands):
As of
 March 29,
2026		September 28,
2025
Billed$720,165 $855,026 
Unbilled331,274 310,818 
Total accounts receivable1,051,439 1,165,844 
Allowance for doubtful accounts(4,109)(6,916)
Total accounts receivable, net$1,047,330 $1,158,928 
Billed accounts receivable represent amounts billed to clients that have not yet been collected. Unbilled accounts receivable, which represent an unconditional right to payment subject only to the passage of time, include unbilled amounts typically resulting from revenue recognized but not yet billed pursuant to contract terms or billed after the period end date. Substantially all of our unbilled receivables at March 29, 2026 are expected to be billed and collected within 12 months. The allowance for doubtful accounts represents amounts that are expected to become uncollectible or unrealizable in the future. We estimate the allowance for uncollectible accounts based on management's consideration of trends in the actual and forecasted credit quality of our clients, including client delinquency and payment history; type of client, such as a government agency or a commercial sector client; and general economic and industry conditions that may affect our clients' ability to pay.
Other than the U.S. federal government, no single client accounted for more than 10% of our accounts receivable at March 29, 2026 and September 28, 2025.
Remaining Unsatisfied Performance Obligation (“RUPO”)
Our RUPO represents a measure of the total dollar value of work to be performed on contracts awarded and in progress. We had $4.2 billion of RUPO at March 29, 2026. Our RUPO increases with awards from new contracts or additions on existing contracts and decreases as work is performed and revenue is recognized on existing contracts. Our RUPO may also decrease when projects are canceled or modified in scope. We include a contract within our RUPO when the contract is awarded and an agreement on contract terms has been reached.
We expect to satisfy our RUPO at March 29, 2026 over the following periods (in thousands):
Amount
Within 12 months$3,048,220 
Beyond (1)
1,176,533 
Total $4,224,753 
(1) The majority of this amount is expected to be recognized over the subsequent two-year period.    
Although RUPO reflects business that is considered to be firm, cancellations, deferrals or scope adjustments may occur. Our RUPO is adjusted to reflect any known project cancellations, revisions to project scope and cost, foreign currency exchange fluctuations and project deferrals, as appropriate. Our operations and maintenance contracts can generally be terminated by the clients without a substantive financial penalty; therefore, the remaining performance obligations on such contracts are limited to the notice period required for the termination (usually 30, 60, or 90 days).