v3.26.1
Business Segments
 9 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
We conduct our operations through three business segments: U.S. Federal Services, U.S. Services, and Outside the U.S. Our operating segments represent the manner in which our Chief Executive Officer (CEO), who is our Chief Operating Decision Maker (CODM), reviews our financial results. The CODM reviews segment-level revenue, gross profit, and segment operating income/(loss) on a regular basis to assess performance and manage the business. Revenue is used to evaluate growth trends and performance relative to budget, while gross profit and segment operating income/(loss) are used to assess overall profitability, business efficiency, and the effectiveness of cost-reduction initiatives. These measures also inform the CODM’s decisions regarding the allocation of resources across segments, including allocations of management bonus as well as investments in technology, personnel, and strategic transactions, such as mergers and acquisitions.
Our CODM does not evaluate operating segments using asset or liability information.
U.S. Federal Services
Our U.S. Federal Services Segment delivers solutions that help various U.S. federal government agencies better execute their missions, including program operations and management, clinical services, and advanced technology solutions.
U.S. Services
Our U.S. Services Segment provides a variety of services, such as program operations, clinical services, employment services, and advanced technology solutions and related professional services for U.S. state and local government programs. These services support a variety of programs, including those under Medicaid and the Children's Health Insurance Program (CHIP), the Affordable Care Act (ACA) marketplaces, and Temporary Assistance for Needy Families (TANF).
Outside the U.S.
Our Outside the U.S. Segment provides business process services and other solutions for international governments. These services include health and disability assessments, program administration for employment services, wellbeing solutions and other job seeker-related services, digitally-enabled customer services, and advanced technologies for modernization. We support programs and deliver services in the United Kingdom, including the Functional Assessment Services (FAS) contract and the Restart employment program. We also provide services in Canada and the Middle East.
Table 3.1: Results of Operations by Business Segment for the Three Months Ended
For the Three Months Ended June 30, 2026
(dollars in thousands)U.S. Federal Services% (1 )U.S. Services% (1 )Outside the U.S.% (1 )Total
Revenue$720,991 $418,227 $139,753 $1,278,971 
Cost of revenue498,720 69.2 %311,449 74.5 %119,999 85.9 %930,168 
Gross profit222,271 30.8 %106,778 25.5 %19,754 14.1 %348,803 
Other segment items (2)88,231 12.2 %61,589 14.7 %18,548 13.3 %168,368 
Segment operating income$134,040 18.6 %$45,189 10.8 %$1,206 0.9 %180,435 
Divestiture-related gains/(charges) (3)1,162 
Other (4)18 
Amortization of intangible assets(20,187)
Operating income$161,428 
Depreciation and amortization$7,223 1.0 %$3,997 1.0 %$654 0.5 %$11,874 
For the Three Months Ended June 30, 2025
(dollars in thousands)U.S. Federal Services% (1)U.S. Services% (1)Outside the U.S.% (1)Total
Revenue$761,174 $439,818 $147,408 $1,348,400 
Cost of revenue535,040 70.3 %333,886 75.9 %119,961 81.4 %988,887 
Gross profit226,134 29.7 %105,932 24.1 %27,447 18.6 %359,513 
Other segment items (2)88,272 11.6 %60,975 13.9 %21,507 14.6 %170,754 
Segment operating income$137,862 18.1 %$44,957 10.2 %$5,940 4.0 %188,759 
Other (4)(77)
Amortization of intangible assets(23,010)
Operating income$165,672 
Depreciation and amortization$3,125 0.4 %$4,631 1.1 %$1,851 1.3 %$9,607 
Table 3.2: Results of Operations by Business Segment for the Nine Months Ended
For the Nine Months Ended June 30, 2026
(dollars in thousands)U.S. Federal Services% (1)U.S. Services% (1)Outside the U.S.% (1)Total
Revenue$2,260,735 $1,249,229 $420,020 $3,929,984 
Cost of revenue1,598,084 70.7 %957,548 76.7 %364,615 86.8 %2,920,247 
Gross profit662,651 29.3 %291,681 23.3 %55,405 13.2 %1,009,737 
Other segment items (2)266,174 11.8 %178,616 14.3 %58,664 14.0 %503,454 
Segment operating income/(loss)$396,477 17.5 %$113,065 9.1 %$(3,259)(0.8)%506,283 
Divestiture-related gains/(charges) (3)10,147 
Other (4)480 
Amortization of intangible assets(60,785)
Operating income$456,125 
Depreciation and amortization$21,637 1.0 %$12,381 1.0 %$3,073 0.7 %$37,091 
For the Nine Months Ended June 30, 2025
(dollars in thousands)U.S. Federal Services% (1)U.S. Services% (1)Outside the U.S.% (1)Total
Revenue$2,319,756 $1,334,418 $458,687 $4,112,861 
Cost of revenue1,718,249 74.1 %1,021,712 76.6 %373,009 81.3 %3,112,970 
Gross profit601,507 25.9 %312,706 23.4 %85,678 18.7 %999,891 
Other segment items (2)245,563 10.6 %173,096 13.0 %66,822 14.6 %485,481 
Segment operating income$355,944 15.3 %$139,610 10.5 %$18,856 4.1 %514,410 
Divestiture-related gains/(charges) (3)(39,343)
Other (4)(599)
Amortization of intangible assets(69,041)
Operating income$405,427 
Depreciation and amortization$9,653 0.4 %$12,603 0.9 %$5,246 1.1 %$27,502 
(1)Percentage of respective revenue, as applicable.
(2)Other segment items are principally selling, general, and administrative expenses allocated to segments.
(3)During fiscal years 2026 and 2025, we divested businesses from our U.S. Services and Outside the U.S. Segments, respectively. See "Note 6. Divestitures" for additional information.
(4)Other expenses include credits and costs that are not allocated to a particular segment.