Total Revenue

–1.5% (from $5,211M to $5,132M)

Total Revenue declined slightly in Q1 FY 2026, reflecting a mixed performance across segments. Although segments like AR and CS posted gains, lower contributions from SAS and IMS partly drove the decline, following trends seen in earlier periods where shifts in program timing and market demand influenced overall revenue. " " "

SAS Segment Revenue

–8% (from $1,751M to $1,611M)

SAS revenue dropped by 8% YoY, likely due to continued program timing issues and a reduction in volumes from segments such as Airborne Combat Systems, similar to the challenges observed in previous periods. Adjustments linked to divestitures or lower ramp-up on defense programs may also be contributing factors. " " "

IMS Segment Revenue

–4.6% (from $1,669M to $1,592M)

IMS revenue decreased by about 4.6% YoY, which can be attributed to lower demand in areas such as ISR where prior growth was driven by increased aircraft missionization and Defense Electronics. The decline suggests that adjustments in program execution and a natural transition following the growth spur seen in FY 2025 are influencing current revenues. " " "

CS Segment Revenue

+4.5% (from $1,294M to $1,352M)

CS revenue increased by roughly 4.5% YoY, reflecting strong and sustained demand for tactical communications, broadband solutions, and related products. This continued momentum builds upon the trends from FY 2025 where international and domestic demand helped drive higher volumes. " " "

AR Segment Revenue

+16% (from $542M to $629M)

AR revenue saw a robust 16% YoY increase, supported by the full-year inclusion of the Aerojet Rocketdyne (AJRD) acquisition and expanded production volumes in Missile Solutions. This growth further builds on the significant boost experienced in FY 2025, as the segment continues to benefit from new program ramps and the integration of formerly partial-year results. " " "

Corporate Eliminations

More negative (from –$45M to –$52M)

Corporate eliminations widened from –$45M to –$52M, reflecting increased intercompany adjustments. This change is consistent with the evolving consolidation and reclassification efforts seen as the company integrates new segments and adjusts for intra-company transactions, similar to prior period trends. " " "