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Revenue | 12 Months Ended
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Jan. 02, 2026
Revenue from Contract with Customer [Abstract] |
Revenue | Revenue Disaggregated Revenue We disaggregate our revenue from customers by business unit, customer type, geographic destination and contract type for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Revenue by business unit and reportable segment was as follows:
|  |  | Year ended
Dollars in millions |  |  |  |  | January 2, 2026 |  | January 3, 2025 |  | December 29, 2023
Mission Technology Solutions |  |  |  |  |  |  |  |  |
Science & Space |  |  |  |  | $ | 1,126 |  |  | $ | 1,188 |  |  | $ | 1,127 |
Defense & Intel |  |  |  |  | 3,178 |  |  | 2,887 |  |  | 2,497 |
Readiness & Sustainment |  |  |  |  | 1,277 |  |  | 1,480 |  |  | 1,495 |
Total Mission Technology Solutions |  |  |  |  | $ | 5,581 |  |  | $ | 5,555 |  |  | $ | 5,119 |
Sustainable Technology Solutions |  |  |  |  | $ | 2,205 |  |  | $ | 2,155 |  |  | $ | 1,837 |
Total revenue |  |  |  |  | $ | 7,786 |  |  | $ | 7,710 |  |  | $ | 6,956 |
Revenue by customer type was as follows:
|  |  | Year ended
|  |  |  |  | January 2, 2026 |  | January 3, 2025 |  | December 29, 2023
Dollars in millions |  |  |  |  |  |  |  |  |  |  |  |  | MTS |  | STS |  | Total |  | MTS |  | STS |  | Total |  | MTS |  | STS |  | Total
U.S. Government Defense and Intelligence Clients |  |  |  |  |  |  |  |  |  |  |  |  | $ | 3,370 |  |  | $ | — |  |  | $ | 3,370 |  |  | $ | 3,292 |  |  | $ | — |  |  | $ | 3,292 |  |  | $ | 3,039 |  |  | $ | — |  |  | $ | 3,039 |
U.S. Government Federal Civilian Clients |  |  |  |  |  |  |  |  |  |  |  |  | 1,057 |  |  | — |  |  | 1,057 |  |  | 1,112 |  |  | — |  |  | 1,112 |  |  | 1,052 |  |  | — |  |  | 1,052 |
International Government Clients |  |  |  |  |  |  |  |  |  |  |  |  | 905 |  |  | — |  |  | 905 |  |  | 891 |  |  | — |  |  | 891 |  |  | 791 |  |  | — |  |  | 791 |
Commercial and Infrastructure Clients |  |  |  |  |  |  |  |  |  |  |  |  | 249 |  |  | 2,205 |  |  | 2,454 |  |  | 260 |  |  | 2,155 |  |  | 2,415 |  |  | 237 |  |  | 1,837 |  |  | 2,074 |
Total revenue |  |  |  |  |  |  |  |  |  |  |  |  | $ | 5,581 |  |  | $ | 2,205 |  |  | $ | 7,786 |  |  | $ | 5,555 |  |  | $ | 2,155 |  |  | $ | 7,710 |  |  | $ | 5,119 |  |  | $ | 1,837 |  |  | $ | 6,956 |
Revenue by geographic destination was as follows:
| Year ended
Dollars in millions | January 2, 2026 |  | January 3, 2025 |  | December 29, 2023
Total by Countries/Regions | MTS |  | STS |  | Total |  | MTS |  | STS |  | Total |  | MTS |  | STS |  | Total
United States | $ | 3,772 |  |  | $ | 472 |  |  | $ | 4,244 |  |  | $ | 3,503 |  |  | $ | 542 |  |  | $ | 4,045 |  |  | $ | 3,096 |  |  | $ | 521 |  |  | $ | 3,617 |
Europe | 1,313 |  |  | 271 |  |  | 1,584 |  |  | 1,595 |  |  | 299 |  |  | 1,894 |  |  | 1,569 |  |  | 247 |  |  | 1,816 |
Middle East | 123 |  |  | 667 |  |  | 790 |  |  | 110 |  |  | 621 |  |  | 731 |  |  | 105 |  |  | 423 |  |  | 528 |
Australia | 219 |  |  | 329 |  |  | 548 |  |  | 202 |  |  | 324 |  |  | 526 |  |  | 204 |  |  | 292 |  |  | 496 |
Africa | 77 |  |  | 176 |  |  | 253 |  |  | 70 |  |  | 131 |  |  | 201 |  |  | 70 |  |  | 106 |  |  | 176 |
Asia | 20 |  |  | 122 |  |  | 142 |  |  | 18 |  |  | 134 |  |  | 152 |  |  | 17 |  |  | 152 |  |  | 169 |
Other countries | 57 |  |  | 168 |  |  | 225 |  |  | 57 |  |  | 104 |  |  | 161 |  |  | 58 |  |  | 96 |  |  | 154 |
Total revenue | $ | 5,581 |  |  | $ | 2,205 |  |  | $ | 7,786 |  |  | $ | 5,555 |  |  | $ | 2,155 |  |  | $ | 7,710 |  |  | $ | 5,119 |  |  | $ | 1,837 |  |  | $ | 6,956 |
Many of our contracts contain cost reimbursable, time-and-materials and fixed price (including unit-rate) components. We define contract type based on the component that represents the majority of the contract. Revenue by contract type was as follows:
|  |  |  |  | Year ended January 2, 2026 |  | Year ended January 3, 2025 |  | Year ended December 29, 2023
Dollars in millions |  |  |  |  |  |  |  |  |  |  |  |  | MTS |  | STS |  | Total |  | MTS |  | STS |  | Total |  | MTS |  | STS |  | Total
Cost-Reimbursable |  |  |  |  |  |  |  |  |  |  |  |  | $ | 3,305 |  |  | $ | — |  |  | $ | 3,305 |  |  | $ | 3,507 |  |  | $ | — |  |  | $ | 3,507 |  |  | $ | 3,287 |  |  | $ | — |  |  | $ | 3,287 |
Time-and-Materials |  |  |  |  |  |  |  |  |  |  |  |  | 938 |  |  | 1,373 |  |  | 2,311 |  |  | 892 |  |  | 1,362 |  |  | 2,254 |  |  | 846 |  |  | 1,166 |  |  | 2,012 |
Fixed Price |  |  |  |  |  |  |  |  |  |  |  |  | 1,338 |  |  | 832 |  |  | 2,170 |  |  | 1,156 |  |  | 793 |  |  | 1,949 |  |  | 986 |  |  | 671 |  |  | 1,657 |
Total revenue |  |  |  |  |  |  |  |  |  |  |  |  | $ | 5,581 |  |  | $ | 2,205 |  |  | $ | 7,786 |  |  | $ | 5,555 |  |  | $ | 2,155 |  |  | $ | 7,710 |  |  | $ | 5,119 |  |  | $ | 1,837 |  |  | $ | 6,956 |
Performance Obligations Changes in estimates are recognized on a cumulative catch-up basis in the current period associated with performance obligations satisfied in a prior period due to the release of a constrained milestone, modification in contract price or scope or a change in the likelihood of a contingency or claim being resolved. We recognized revenue from performance obligations satisfied in previous periods for such matters of $48 million, $30 million and $15 million for the years ended January 2, 2026, January 3, 2025 and December 29, 2023, respectively. On January 2, 2026, we had $13.3 billion of transaction price allocated to remaining performance obligations. We expect to recognize approximately 36% of our remaining performance obligations as revenue within one year, 41% in years two through five and 23% thereafter. Revenue associated with our remaining performance obligations to be recognized beyond one year includes performance obligations primarily related to the Aspire Defence project, which has contract terms extending through 2041. Remaining performance obligations do not include variable consideration that was determined to be constrained as of January 2, 2026. Changes in Project-related Estimates There are many factors that may affect the accuracy of our cost estimates and ultimately our future profitability. These include, but are not limited to, the availability and costs of resources (such as labor, materials and equipment), productivity, weather and ongoing resolution of commercial and legal matters, including any new or ongoing disputes with our business partners and others in our supply chain. We recognize revisions of revenues, costs and equity in earnings in the period in which the revisions are known. This may result in the recognition of costs before the recognition of related revenue recovery, if any. During fiscal 2025, we recognized a favorable change in operating income of $134 million as a result of changes in estimates on an LNG project. Contract Assets and Contract Liabilities Contract assets were $280 million and $271 million and contract liabilities were $331 million and $328 million, at January 2, 2026 and January 3, 2025, respectively. The increase in contract assets was primarily attributed to revenue recognized on certain contracts partially offset by the timing of billings. The increase in contract liabilities was due to the timing of advance payments and revenue recognized during the period. We recognized revenue of $233 million for the year ended January 2, 2026, which was previously included in the contract liability balance at January 3, 2025. Accounts Receivable
Dollars in millions | January 2, 2026 |  | January 3, 2025
Unbilled | $ | 520 |  |  | $ | 525 |
Trade & other | 566 |  |  | 541 |
Accounts receivable, net | $ | 1,086 |  |  | $ | 1,066 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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