Revenue falls 4% as procurement slows; operating income +9% on cost discipline, net income -27% on tax drag

Filed July 24, 2026 · Period ending June 30, 2026 · Compared to 10-Q Jul 25, 2025 · ~2 min read

Key Changes

• high

  Operating income rose 9% to $279M (margin 9% → 10%) while net income fell 27% to $198M, driven by a $108M tax expense swing as prior-year's $89M uncertain-tax-position reserve reduction did not recur.

  MD&A: Operating Income & Tax verify on EDGAR →
• high

  Revenue declined 4% YoY to $2.8B, driven by slowed procurement, reduced headcount, and lower billable expenses. Management states the procurement environment has had a negative effect on backlog-to-revenue conversion as of June 30, 2026.

  MD&A: Revenue & Backlog Conversion verify on EDGAR →
• high

  Announced $720M acquisition of Ultra Mission Solutions (defense tech: software, encryption, edge compute), expected to close Q2 FY2027 pending regulatory approval; completed $235M Defy Security acquisition in April 2026.

  MD&A & Notes: Acquisitions verify on EDGAR →