v3.26.1
Revenues
 6 Months Ended
Jul. 03, 2026
Revenue from Contract with Customer [Abstract]  
Revenues
Note 2–Revenues
REMAINING PERFORMANCE OBLIGATIONS
Remaining performance obligations ("RPO") represent the expected value of exercised contracts, both funded and unfunded, less revenue recognized to date. RPO does not include unexercised option periods and future potential task orders expected to be awarded under indefinite delivery/indefinite quantity ("IDIQ") contracts, General Services Administration Schedule or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded and separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders.
As of July 3, 2026, we had $20 billion of RPO and expect to recognize approximately 63% and 82% over the next 12 months and 24 months, respectively, with the remainder to be recognized thereafter.
DISAGGREGATION OF REVENUES
We disaggregate revenues by customer-type, contract-type and geographic location for each of our reportable segments.
Disaggregated revenues by customer-type were as follows:
Three Months Ended July 3, 2026
(in millions)
Intelligence & Digital
Health
Homeland
Defense
Total
DoW and U.S. Intelligence Community$1,097 $219 $18 $902 $2,236 
Other U.S. government agencies(1)
379 852 298 19 1,548 
Commercial and non-U.S. customers
13 15 702 34 764 
Total$1,489 $1,086 $1,018 $955 $4,548 
Three Months Ended July 4, 2025
(in millions)Intelligence & DigitalHealthHomelandDefenseTotal
DoW and U.S. Intelligence Community$975 $252 $13 $825 $2,065 
Other U.S. government agencies(1)
408 902 280 34 1,624 
Commercial and non-U.S. customers
10 16 478 40 544 
Total$1,393 $1,170 $771 $899 $4,233 
(1) Includes federal government agencies other than the DoW and U.S. Intelligence Community, as well as state and local government agencies.
Six Months Ended July 3, 2026
(in millions)
Intelligence & Digital
Health
Homeland
Defense
Total
DoW and U.S. Intelligence Community
$2,175 $468 $38 $1,724 $4,405 
Other U.S. government agencies(1)
782 1,776 570 46 3,174 
Commercial and non-U.S. customers29 30 1,225 68 1,352 
Total$2,986 $2,274 $1,833 $1,838 $8,931 
Six Months Ended July 4, 2025
(in millions)Intelligence & DigitalHealthHomelandDefenseTotal
DoW and U.S. Intelligence Community
$1,933 $521 $36 $1,634 $4,124 
Other U.S. government agencies(1)
837 1,800 555 68 3,260 
Commercial and non-U.S. customers20 32 949 76 1,077 
Total$2,790 $2,353 $1,540 $1,778 $8,461 
(1) Includes federal government agencies other than the DoW and U.S. Intelligence Community, as well as state and local government agencies.
Disaggregated revenues by contract-type were as follows:
Three Months Ended July 3, 2026
(in millions)
Intelligence & Digital
Health
Homeland
Defense
Total
Cost-reimbursement and fixed-price-incentive-fee
$904 $388 $193 $541 $2,026 
Firm-fixed-price352 665 516 329 1,862 
Time-and-materials and fixed-price-level-of-effort
233 33 309 85 660 
Total$1,489 $1,086 $1,018 $955 $4,548 
Three Months Ended July 4, 2025
(in millions)Intelligence & DigitalHealthHomelandDefenseTotal
Cost-reimbursement and fixed-price-incentive-fee
$793 $374 $156 $528 $1,851 
Firm-fixed-price355 761 433 278 1,827 
Time-and-materials and fixed-price-level-of-effort
245 35 182 93 555 
Total$1,393 $1,170 $771 $899 $4,233 
Six Months Ended July 3, 2026
(in millions)
Intelligence & Digital
Health
Homeland
Defense
Total
Cost-reimbursement and fixed-price-incentive-fee$1,808 $816 $367 $1,063 $4,054 
Firm-fixed-price696 1,395 951 603 3,645 
Time-and-materials and fixed-price-level-of-effort482 63 515 172 1,232 
Total$2,986 $2,274 $1,833 $1,838 $8,931 
Six Months Ended July 4, 2025
(in millions)Intelligence & DigitalHealthHomelandDefenseTotal
Cost-reimbursement and fixed-price-incentive-fee$1,588 $781 $325 $1,045 $3,739 
Firm-fixed-price698 1,496 867 535 3,596 
Time-and-materials and fixed-price-level-of-effort504 76 348 198 1,126 
Total$2,790 $2,353 $1,540 $1,778 $8,461 
Disaggregated revenues by geographic location were as follows:
Three Months Ended July 3, 2026
(in millions)
Intelligence & Digital
Health
Homeland
Defense
Total
United States
$1,488 $1,086 $626 $944 $4,144 
International
1 — 392 11 404 
Total$1,489 $1,086 $1,018 $955 $4,548 
Three Months Ended July 4, 2025
(in millions)Intelligence & DigitalHealthHomelandDefenseTotal
United States
$1,392 $1,170 $445 $886 $3,893 
International
1 — 326 13 340 
Total$1,393 $1,170 $771 $899 $4,233 
Six Months Ended July 3, 2026
(in millions)
Intelligence & Digital
Health
Homeland
Defense
Total
United States
$2,985 $2,274 $1,092 $1,819 $8,170 
International
1 — 741 19 761 
Total$2,986 $2,274 $1,833 $1,838 $8,931 
Six Months Ended July 4, 2025
(in millions)Intelligence & DigitalHealth
HomelandDefense
Total
United States
$2,789 $2,353 $878 $1,754 $7,774 
International
1 — 662 24 687 
Total$2,790 $2,353 $1,540 $1,778 $8,461 
Revenues by customer-type, contract-type and geographic location exclude lease income of $10 million and $27 million for the three and six months ended July 3, 2026, respectively, and $20 million and $37 million for the three and six months ended July 4, 2025, respectively.
CONTRACT ASSETS AND LIABILITIES
Performance obligations are satisfied either over time as work progresses or at a point in time. Firm-fixed-price contracts are typically billed to the customer using milestone payments while cost-reimbursable and time and materials contracts are typically billed to the customer on a monthly or bi-weekly basis as indicated by the negotiated billing terms and conditions of the contract. As a result, the timing of revenue recognition, customer billings and cash collections for each contract results in a net contract asset or liability at the end of each reporting period.
Contract assets consist of unbilled receivables, which is the amount of revenue recognized that exceeds the amount billed to the customer. Unbilled receivables exclude amounts billable where the right to consideration is unconditional and not billed. Contract liabilities consist of deferred revenue, which represents cash advances received prior to performance for programs and billings in excess of revenue recognized.
The components of contract assets and contract liabilities consisted of the following:
(in millions)Balance sheet line itemJuly 3,
2026		January 2,
2026
Contract assets - current:
Unbilled receivablesReceivables, net$918 $894 
Contract liabilities - current:
Deferred revenue(1)
Accounts payable and accrued liabilities$359 $348 
Contract liabilities - non-current:
Deferred revenue(1)
Other long-term liabilities$2 $6 
(1) Certain contracts record revenue net of cost of revenues, and therefore, the respective deferred revenue balance will not fully convert to revenue.
The increase in unbilled receivables was primarily due to the acquisition of Entrust (see "Note 3–Acquisitions and Divestitures") and revenue recognized on certain contracts, partially offset by the timing of billings on certain contracts.
For the three and six months ended July 3, 2026, $20 million and $76 million, respectively, of revenue recognized was included as a contract liability at January 2, 2026. For the three and six months ended July 4, 2025, $62 million and $199 million, respectively, of revenue recognized was included as a contract liability at January 3, 2025.