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REVENUE FROM CONTRACTS WITH CUSTOMERS
 9 Months Ended
Sep. 26, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue
The following table disaggregates the Company’s revenue by reportable segment and timing of transfer of products or services:
Three Months EndedNine Months Ended
September 26, 2026September 27, 2025September 26, 2026September 27, 2025
(in thousands)
Timing of Revenue Recognition:
DSA
Services and products transferred over time$595,663 $600,080 $1,797,831 $1,809,465 
Services and products transferred at a point in time659 605 1,921 1,858 
Total DSA revenue596,322 600,685 1,799,752 1,811,323 
Manufacturing
Services and products transferred over time74,230 92,250 250,027 290,334 
Services and products transferred at a point in time104,648 98,443 307,487 279,680 
Total Manufacturing revenue178,878 190,693 557,514 570,014 
RMS
Services and products transferred over time94,866 96,080 283,439 290,832 
Services and products transferred at a point in time112,666 117,394 341,935 348,986 
Total RMS revenue207,532 213,474 625,374 639,818 
Total revenue$982,732 $1,004,852 $2,982,640 $3,021,155 
Contract Balances from Contracts with Customers
The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers:
September 26, 2026December 27, 2025
(in thousands)
Assets from contracts with customers
Client receivables$546,861 $518,728 
Unbilled revenue198,955 200,591 
Total745,816 719,319 
Less: Allowance for credit losses(10,511)(10,463)
Trade receivables and contract assets, net$735,305 $708,856 
Liabilities from contracts with customers
Current deferred revenue$204,204 $210,418 
Long-term deferred revenue (included in Other long-term liabilities)47,687 45,632 
Customer contract deposits (included in Other current liabilities)117,620 106,599 
Approximately 90% of unbilled revenue as of December 27, 2025, which was $201 million, was billed during the nine months ended September 26, 2026. Approximately 90% of unbilled revenue as of December 28, 2024, which was $212 million, was billed during the nine months ended September 27, 2025.
Approximately 70% of contract liabilities as of December 27, 2025, which was $256 million, were recognized as revenue during the nine months ended September 26, 2026. Approximately 75% of contract liabilities as of December 28, 2024, which was $283 million, were recognized as revenue during the nine months ended September 27, 2025.
When the Company does not have the unconditional right to advanced billings, both advanced client payments and unpaid advanced client billings are excluded from deferred revenue, with the advanced billings also being excluded from client receivables. The Company excluded approximately $60 million and $43 million of unpaid advanced client billings from both client receivables and deferred revenue in the accompanying unaudited condensed consolidated balance sheets as of September 26, 2026 and December 27, 2025, respectively.
Allowance for Credit Losses
The following is a summary of the activity of the Company’s allowance for credit losses:
Nine Months Ended
September 26, 2026September 27, 2025
(in thousands)
Beginning balance$10,463 $18,301 
Provisions1,935 4,559 
Reductions(1,887)(9,055)
Ending balance$10,511 $13,805 
Net recoveries were $0.9 million during the nine months ended September 26, 2026, while net provision expenses were $2.8 million during the nine months ended September 27, 2025. These amounts include recoveries of balances previously written off, which are excluded from the table above.
Transaction Price Allocated to Future Performance Obligations
The Company discloses the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of September 26, 2026. Excluded from the disclosure is the value of unsatisfied performance obligations for contracts with an original expected length of one year or less, contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed, and service revenue recognized in accordance with ASC 842, “Leases.” The aggregate amount of transaction price allocated to the remaining performance obligations for all open customer contracts as of September 26, 2026 was $675.3 million. The Company will recognize revenues for these performance obligations as they are satisfied, approximately 60% of which is expected to occur within the next twelve months and the remainder recognized thereafter during the remaining contract term.
Other Performance Obligations
As part of the Company’s service offerings, the Company has identified performance obligations related to leasing Company owned assets. In certain arrangements, customers obtain substantially all of the economic benefits of the identified assets, which may include manufacturing suites and related equipment, and have the right to direct the assets’ use over the term of the contract. The associated revenue is recognized on a straight-line basis over the term of the lease, which is generally less than one year, and recorded within service revenue. The Company recognized $6.7 million and $12.1 million in lease revenue during the three months ended September 26, 2026 and September 27, 2025, respectively. The Company recognized $27.6 million and $35.7 million in lease revenue during the nine months ended September 26, 2026 and September 27, 2025, respectively. The decrease in lease revenue was primarily due to the CDMO divestiture in the second quarter of 2026. Due to the nature of these arrangements and timing of the contractual lease term, the remaining revenue to be recognized related to these lease performance obligations is not material to the unaudited condensed consolidated financial statements.