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Contract Balances | 6 Months Ended
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Apr. 03, 2026
Revenue from Contract with Customer [Abstract] |
Contract Balances | 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
|  | April 3, 2026 |  | March 28, 2025
(Amounts in millions) |  | DS |  | GES |  | Total |  | DS |  | GES |  | Total
Department of War and U.S. Intelligence Community |  | $ | 816 |  |  | $ | 1,065 |  |  | $ | 1,881 |  |  | $ | 738 |  |  | $ | 1,070 |  |  | $ | 1,808 |
Other U.S. Government Agencies |  | 421 |  | 485 |  | 906 |  | 405 |  | 585 |  | 990 |
Commercial and International |  | 231 |  | 460 |  | 691 |  |  | 197 |  | 496 |  | 693
Total revenues |  | $ | 1,468 |  |  | $ | 2,010 |  |  | $ | 3,478 |  |  | $ | 1,340 |  |  | $ | 2,151 |  |  | $ | 3,491 |
|  | Six Months Ended
|  | April 3, 2026 |  | March 28, 2025
(Amounts in millions) |  | DS |  | GES |  | Total |  | DS |  | GES |  | Total
Department of War and U.S. Intelligence Community |  | $ | 1,527 |  |  | $ | 2,090 |  |  | $ | 3,617 |  |  | $ | 1,460 |  |  | $ | 2,116 |  |  | $ | 3,576 |
Other U.S. Government Agencies |  | 821 |  |  | 933 |  |  | 1,754 |  |  | 821 |  | 1,185 |  |  | 2,006 |
Commercial and International |  | 457 |  | 887 |  |  | 1,344 |  |  | 345 |  | 980 |  | 1325
Total revenues |  | $ | 2,805 |  |  | $ | 3,910 |  |  | $ | 6,715 |  |  | $ | 2,626 |  |  | $ | 4,281 |  |  | $ | 6,907 |
Disaggregated revenues by contract-type were as follows:
|  | Three Months Ended
|  | April 3, 2026 |  | March 28, 2025
(Amounts in millions) |  | DS |  | GES |  | Total |  | DS |  | GES |  | Total
Cost-plus-fee |  | $ | 883 |  |  | $ | 1,104 |  |  | $ | 1,987 |  |  | $ | 861 |  |  | $ | 1,388 |  |  | $ | 2,249 |
Fixed-price |  | 402 |  | 580 |  | 982 |  | 331 |  | 476 |  | 807 |
Time-and-materials |  | 183 |  | 326 |  | 509 |  |  | 148 |  | 287 |  | 435 |
Total revenues |  | $ | 1,468 |  |  | $ | 2,010 |  |  | $ | 3,478 |  |  | $ | 1,340 |  |  | $ | 2,151 |  |  | $ | 3,491 |
|  | Six Months Ended
|  | April 3, 2026 |  | March 28, 2025
(Amounts in millions) |  | DS |  | GES |  | Total |  | DS |  | GES |  | Total
Cost-plus-fee |  | $ | 1,669 |  |  | $ | 2,163 |  |  | $ | 3,832 |  |  | $ | 1,646 |  |  | $ | 2,769 |  |  | $ | 4,415 |
Fixed-price |  | 782 |  |  | 1,128 |  |  | 1,910 |  |  | 690 |  |  | 948 |  |  | 1,638 |
Time-and-materials |  | 354 |  | 619 |  | 973 |  |  | 290 |  | 564 |  | 854 |
Total revenues |  | $ | 2,805 |  |  | $ | 3,910 |  |  | $ | 6,715 |  |  | $ | 2,626 |  |  | $ | 4,281 |  |  | $ | 6,907 |
Disaggregated revenues by prime contractor versus subcontractor were as follows:
|  | Three Months Ended
|  | April 3, 2026 |  | March 28, 2025
(Amounts in millions) |  | DS |  | GES |  | Total |  | DS |  | GES |  | Total
Prime contractor |  | $ | 1,381 |  |  | $ | 1,762 |  |  | $ | 3,143 |  |  | $ | 1,215 |  |  | $ | 1,885 |  |  | $ | 3,100 |
Subcontractor |  | 87 |  |  | 248 |  |  | 335 |  |  | 125 |  | 266 |  | 391 |
Total revenues |  | $ | 1,468 |  |  | $ | 2,010 |  |  | $ | 3,478 |  |  | $ | 1,340 |  |  | $ | 2,151 |  |  | $ | 3,491 |
|  | Six Months Ended
|  | April 3, 2026 |  | March 28, 2025
(Amounts in millions) |  | DS |  | GES |  | Total |  | DS |  | GES |  | Total
Prime contractor |  | $ | 2,640 |  |  | $ | 3,407 |  |  | $ | 6,047 |  |  | $ | 2,379 |  |  | $ | 3,763 |  |  | $ | 6,142 |
Subcontractor |  | 165 |  | 503 |  | 668 |  |  | 247 |  | 518 |  | 765 |
Total revenues |  | $ | 2,805 |  |  | $ | 3,910 |  |  | $ | 6,715 |  |  | $ | 2,626 |  |  | $ | 4,281 |  |  | $ | 6,907 |
Revenues by geographic location are reported by the country in which the work is performed and were as follows:
|  | Three Months Ended
|  | April 3, 2026 |  | March 28, 2025
(Amounts in millions) |  | DS |  | GES |  | Total |  | DS |  | GES |  | Total
United States |  | $ | 1,408 |  |  | $ | 1,300 |  |  | $ | 2,708 |  |  | $ | 1,285 |  |  | $ | 1,300 |  |  | $ | 2,585 |
International |  | 60 |  | 710 |  | 770 |  |  | 55 |  |  | 851 |  |  | 906 |
Total revenues |  | $ | 1,468 |  |  | $ | 2,010 |  |  | $ | 3,478 |  |  | $ | 1,340 |  |  | $ | 2,151 |  |  | $ | 3,491 |
|  | Six Months Ended
|  | April 3, 2026 |  | March 28, 2025
(Amounts in millions) |  | DS |  | GES |  | Total |  | DS |  | GES |  | Total
United States |  | $ | 2,692 |  |  | $ | 2,506 |  |  | $ | 5,198 |  |  | $ | 2,507 |  |  | $ | 2,563 |  |  | $ | 5,070 |
International |  | 113 |  | 1,404 |  |  | 1,517 |  |  | 119 |  |  | 1,718 |  |  | 1,837 |
Total revenues |  | $ | 2,805 |  |  | $ | 3,910 |  |  | $ | 6,715 |  |  | $ | 2,626 |  |  | $ | 4,281 |  |  | $ | 6,907 |
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 Ended |  | Six Months Ended
(Amounts in millions) | April 3, 2026 |  | March 28, 2025 |  | April 3, 2026 |  | March 28, 2025
Favorable earnings at completion adjustments | $ | 72 |  |  | $ | 48 |  |  | $ | 119 |  |  | $ | 68 |
Unfavorable earnings at completion adjustments | (50) |  |  | (27) |  |  | (74) |  |  | (40) |
Net favorable adjustments | $ | 22 |  |  | $ | 21 |  |  | $ | 45 |  |  | $ | 28 |
Impact on diluted earnings per share attributable to common shareholders (1) | $ | 0.07 |  |  | $ | 0.07 |  |  | $ | 0.15 |  |  | $ | 0.09 |
(1) The impact on diluted earnings per share attributable to common shareholders is calculated using our statutory tax rate. Remaining Performance Obligations As of April 3, 2026, we had a remaining performance obligations balance of $10.1 billion and expect to recognize approximately 78% and 92% 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 Balance |  | Classification |  | April 3, 2026 |  | October 3, 2025
Billed and billable receivables |  | Accounts receivable, net |  | $ | 1,439 |  |  | $ | 1,514 |
Contract assets |  | Accounts receivable, net |  | 999 |  |  | 902 |
Related party receivables |  | Accounts receivable, net |  | 58 |  |  | 63 |
Long-term contract assets |  | Other long-term assets |  | — |  |  | 90 |
Related party contract liabilities - deferred revenues and other contract liabilities |  | Contract liabilities |  | (11) |  |  | (15) |
Contract liabilities - deferred revenues and other contract liabilities |  | Contract liabilities |  | (169) |  |  | (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 April 3, 2026. During the three and six months ended April 3, 2026, we recognized revenues of $21 million and $148 million, respectively, compared with $8 million and $73 million of revenues during the three and six months ended March 28, 2025, respectively, that was included in Contract liabilities as of October 3, 2025 and September 27, 2024, respectively.

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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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