v3.26.1
Revenues
 9 Months Ended
Jul. 03, 2026
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Disaggregation of Revenues
The Company disaggregates revenues by customer, contract type, prime contractor versus subcontractor, geographic location and whether the solution provided is primarily Digital Solutions or Global Engineering Solutions. These categories represent how the nature, amount, timing, and uncertainty of revenues and cash flows are affected.
Disaggregated revenues by customer-type were as follows:
Three Months Ended
July 3, 2026June 27, 2025
(Amounts in millions)DSGESTotalDSGESTotal
Department of War and U.S. Intelligence Community$790 $927 $1,717 $865 $1,052 $1,917 
Other U.S. Government Agencies4286291057401596997 
Commercial and International239477716 155492647
Total revenues$1,457 $2,033 $3,490 $1,421 $2,140 $3,561 
Nine Months Ended
July 3, 2026June 27, 2025
(Amounts in millions)DSGESTotalDSGESTotal
Department of War and U.S. Intelligence Community$2,317 $3,017 $5,334 $2,325 $3,168 $5,493 
Other U.S. Government Agencies1,249 1,562 2,811 1,222 1,781 3,003 
Commercial and International696 1,364 2,060 5001,472 1972
Total revenues$4,262 $5,943 $10,205 $4,047 $6,421 $10,468 
Disaggregated revenues by contract-type were as follows:
Three Months Ended
July 3, 2026June 27, 2025
(Amounts in millions)DSGESTotalDSGESTotal
Cost-plus-fee$861 $1,010 $1,871 $952 $1,348 $2,300 
Fixed-price4246811105336481817 
Time-and-materials172342514 133311444 
Total revenues$1,457 $2,033 $3,490 $1,421 $2,140 $3,561 
Nine Months Ended
July 3, 2026June 27, 2025
(Amounts in millions)DSGESTotalDSGESTotal
Cost-plus-fee$2,530 $3,173 $5,703 $2,598 $4,117 $6,715 
Fixed-price1,206 1,809 3,015 1,026 1,429 2,455 
Time-and-materials5269611,487 4238751,298 
Total revenues$4,262 $5,943 $10,205 $4,047 $6,421 $10,468 
Disaggregated revenues by prime contractor versus subcontractor were as follows:
Three Months Ended
July 3, 2026June 27, 2025
(Amounts in millions)DSGESTotalDSGESTotal
Prime contractor$1,381 $1,863 $3,244 $1,301 $1,896 $3,197 
Subcontractor76 170 246 120244364 
Total revenues$1,457 $2,033 $3,490 $1,421 $2,140 $3,561 
Nine Months Ended
July 3, 2026June 27, 2025
(Amounts in millions)DSGESTotalDSGESTotal
Prime contractor$4,021 $5,270 $9,291 $3,680 $5,659 $9,339 
Subcontractor241673914 3677621,129 
Total revenues$4,262 $5,943 $10,205 $4,047 $6,421 $10,468 
Revenues by geographic location are reported by the country in which the work is performed and were as follows:
Three Months Ended
July 3, 2026June 27, 2025
(Amounts in millions)DSGESTotalDSGESTotal
United States$1,404 $1,399 $2,803 $1,360 $1,327 $2,687 
International53634687 61 813 874 
Total revenues$1,457 $2,033 $3,490 $1,421 $2,140 $3,561 
Nine Months Ended
July 3, 2026June 27, 2025
(Amounts in millions)DSGESTotalDSGESTotal
United States$4,096 $3,905 $8,001 $3,867 $3,890 $7,757 
International1662,038 2,204 180 2,531 2,711 
Total revenues$4,262 $5,943 $10,205 $4,047 $6,421 $10,468 
Changes in Estimates on Contracts
Changes in estimated contract earnings at completion using the cumulative catch-up method of accounting were recognized in revenues as follows:
Three Months EndedNine Months Ended
(Amounts in millions)
July 3, 2026June 27, 2025July 3, 2026June 27, 2025
Favorable earnings at completion adjustments$84 $48 $203 $98 
Unfavorable earnings at completion adjustments(46)(35)(120)(58)
Net favorable adjustments$38 $13 $83 $40 
Impact on diluted earnings per share attributable to common shareholders (1)
$0.12 $0.04 $0.27 $0.13 
(1)    The impact on diluted earnings per share attributable to common shareholders is calculated using our statutory tax rate.
Remaining Performance Obligations
As of July 3, 2026, we had a remaining performance obligations balance of $8.9 billion and expect to recognize approximately 79% and 91% of the remaining performance obligations balance as revenues over the next 12 and 24 months, respectively, with the remainder to be recognized thereafter.
Contract Balances
The Company's contract balances consisted of the following (in millions):
As of
Description of Contract Related BalanceClassificationJuly 3, 2026October 3, 2025
Billed and billable receivablesAccounts receivable, net$1,490 $1,514 
Contract assetsAccounts receivable, net1,007 902 
Related party receivablesAccounts receivable, net56 63 
Long-term contract assetsOther long-term assets— 90 
Related party contract liabilities - deferred revenues and other contract liabilitiesContract liabilities(9)(15)
Contract liabilities - deferred revenues and other contract liabilitiesContract liabilities(162)(212)
Contract assets primarily relate to accruals for reimbursable costs and fees in which our right to consideration is conditional. Amounts related to a prior acquisition previously classified as long-term contract assets as of October 3, 2025 are presented as contract assets as of July 3, 2026.
During the three and nine months ended July 3, 2026, we recognized revenues of $23 million and $171 million, respectively, compared with $11 million and $84 million of revenues during the three and nine months ended June 27, 2025, respectively, that was included in Contract liabilities as of October 3, 2025 and September 27, 2024, respectively.