Defense technology firms raise guidance as Dec. 11 funding deadline nears
Four of five major government technology contractors raised at least part of their full year outlooks in recent quarterly reports, while federal agencies operate under stopgap funding that runs through Dec. 11. The reports highlight growing backlogs and demand for defense, cyber and AI technologies before the funding deadline.
- Four of five contractors raised at least part of their full year outlooks.
- Palantir's U.S. commercial revenue exceeded its U.S. government revenue.
- BigBear.ai raised 2026 revenue guidance to $150 million to $165 million.
- Federal stopgap funding runs through Dec. 11, 2026.
- The new Congress convenes on Jan. 3, 2027.
Contractors report stronger backlogs and outlooks
Palantir Technologies, Booz Allen Hamilton, CACI International and BigBear.ai lifted parts of their full year guidance. Parsons narrowed its revenue and adjusted EBITDA ranges while reiterating their midpoints.
Palantir reported third quarter revenue of $2.313 billion on Nov. 2, up 96% year-over-year and 20% from the prior quarter. U.S. commercial revenue reached $984 million, ahead of U.S. government revenue at $953 million for the first time, according to the company. Palantir raised its full-year 2026 revenue guidance to between $8.530 billion and $8.534 billion.
Booz Allen reported $41 billion in total backlog and a quarterly book-to-bill ratio of 1.5x. It raised fiscal 2027 adjusted diluted EPS guidance to $6.50 to $6.70, from $6.00 to $6.35, and said it is accelerating investment in advanced cyber, agentic and defense technologies.
AI and defense demand support contractor growth
CACI reported fiscal 2027 first quarter revenue of $2.5 billion, up 8.2% year-over-year, with contract awards of $4.8 billion and a book-to-bill ratio of 2.0x. Funded backlog grew 14.8% to $6.2 billion, and the company raised its fiscal 2027 revenue guidance to $10.7 billion to $10.9 billion.
Parsons reported third quarter revenue of $1.7 billion and record adjusted EBITDA of $168 million. Total and funded backlog reached records of $9.4 billion and $6.8 billion. The company said U.S. Cyber Command raised the ceiling on a five-year, sole-source Other Transaction Agreement to $750 million, and that full-rate production had begun for the Joint Cyber Hunt Kit.
BigBear.ai reported third quarter revenue of $43.6 million, up 31% year-over-year, with gross margin rising to 31.2% from 22.4%. It raised 2026 revenue guidance to $150 million to $165 million and said it had won more than 25 new contracts since the second quarter, worth more than $225 million in contract value. Its backlog rose 22% to $330 million, about 23% of it funded.
Funding and defense legislation remain unresolved
The Continuing Appropriations and Extensions Act, 2027, became Public Law 119-103 on Sept. 2 and funds most federal programs at fiscal 2026 levels through the earlier of Dec. 11, 2026, or enactment of the applicable appropriations act. None of the 12 regular fiscal 2027 appropriations bills has been enacted, according to the Congressional Research Service status table cited in the report.
The House passed its fiscal 2027 National Defense Authorization Act on July 22, but the Senate has yet to pass its own version. The Dec. 11 funding date comes before the new Congress convenes on Jan. 3, 2027. For users and investors tracking government technology companies, the contractors' guidance and backlogs provide company reported indicators of demand, while funding and procurement timing remain key dates for the sector.
PR Newswire: Defense Tech Guidance Moves Higher With a Dec. 11 Funding Deadline Ahead
