Technology Business Research, Inc.

From Contraction to Opportunity: What’s Next for the Federal IT Market and Leading Systems Integrators?

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The turbulence of federal fiscal year 2025 (FFY25) subsided in FFY26, and pockets of recovery are emerging across the federal IT market, particularly in the defense sector.
 

In the below TBR Insights Live session, TBR senior analysts John Caucis and James Wichert review their FFY26 findings and share exclusive insights into trends expected in FFY27, including which vendors are best positioned for growth. Additionally, they discuss the impact of reforms to federal IT acquisition, evolving procurement models, AI adoption trends and cybersecurity investments. Key topics discussed include:

  • Why the federal IT environment is increasingly defined by heightened contract scrutiny, AI-driven transformation and evolving mission priorities
  • The lingering impact of contract cancellations, procurement delays and the 43-day federal shutdown in CY4Q25 on the performance of leading federal systems integrators (FSIs)
  • Why defense and intelligence IT investment is underpinning market recovery and is driving the next phase of federal IT growth
  • When and where civilian agency IT spending is expected to rebound, including key indicators that suggest stronger growth opportunities emerging in FFY27
  • Which FSIs are outperforming the market and why, including insights into the strategies, technologies and customer segments driving growth in today’s challenging environment

 

 
This TBR Insights Live session is available on demand on our YouTube channel. Visit this link to download the presentation’s slide deck.
 
If you’d like to further explore the data mentioned in this TBR Insights Live session, sign up for a free trial of TBR Insight Center™ today.
 
TBR Insights Live sessions are held typically on Thursdays at 1 p.m. ET and include a 15-minute Q&A session following the main presentation. Previous sessions can be viewed anytime on TBR’s Webinar Portal.