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REVENUES
 3 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Disaggregation of Revenue
We have four revenue streams: cloud services and subscriptions, customer support, license, and professional service and other. The following tables disaggregate our revenue by significant geographic area, based on the location of our direct end customer, by type of performance obligation and timing of revenue recognition for the periods indicated:
Three Months Ended September 30,
20252024
Total Revenues by Geography:
Americas (1)
$733,576 $728,243 
EMEA (2)
438,802 419,231 
Asia Pacific (3)
115,757 121,531 
Total revenues$1,288,135 $1,269,005 
______________________
(1)Americas consists of countries in North, Central and South America.
(2)EMEA consists of countries in Europe, the Middle East and Africa.
(3)Asia Pacific primarily consists of Australia, Japan, Singapore, India and China.
Three Months Ended September 30,
20252024
Total Revenues by Type of Performance Obligation:
Recurring revenues (1)
Cloud services and subscriptions revenue$484,509 $457,024 
Customer support revenue586,845 595,490 
Total recurring revenues$1,071,354 $1,052,514 
License revenue (perpetual, term and subscriptions) 134,548 125,813 
Professional service and other revenue82,233 90,678 
Total revenues$1,288,135 $1,269,005 
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(1)Recurring revenue is defined as the sum of Cloud services and subscriptions revenue and Customer support revenue.
Three Months Ended September 30,
20252024
Total Revenues by Timing of Revenue Recognition:
Point in time $134,548 $125,813 
Over time (including professional service and other revenue)1,153,587 1,143,192 
Total revenues$1,288,135 $1,269,005 
Revenue by Product Categories
We have seven product categories (previously referred to as business clouds) as part of our Information Management solutions: Content, Business Network, IT Operations Management (ITOM, also known as Observability and Service Management (OSM)), Cybersecurity (Enterprise), Cybersecurity (Small and Medium-Sized Businesses (SMB) & Consumer), Application Delivery Management (ADM, also known as DevOps), and Analytics. The following table disaggregates total revenue and total cloud services and subscription revenue by product category for the periods indicated. The Company believes this presentation is useful as it provides additional information:
Three Months Ended September 30,
20252024
Total Revenues by Product Categories
Content$523,464 $506,891 
Business Network160,711 157,220 
ITOM
113,444 120,209 
Cybersecurity (Enterprise)180,747 170,559 
Cybersecurity (SMB & Consumer)131,727 138,400 
ADM (1)
122,096 118,946 
Analytics55,946 56,780 
Total revenues by Product Categories
$1,288,135 $1,269,005 
Total Cloud services and subscriptions revenue by Product Categories
Content$135,612 $112,290 
Business Network152,199 147,568 
ITOM
6,763 4,270 
Cybersecurity (Enterprise)21,017 21,297 
Cybersecurity (SMB & Consumer)121,321 127,229 
ADM (1)
31,167 25,003 
Analytics16,430 19,367 
Total cloud services and subscriptions revenues by Product Categories
$484,509 $457,024 
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(1)ADM was previously named Application Automation.
Contract Balances
A contract asset, net of allowance for credit losses, will be recorded if we have recognized revenue but do not have an unconditional right to the related consideration from the customer. For example, this will be the case if implementation services offered in a cloud arrangement are identified as a separate performance obligation and are provided to a customer prior to us being able to bill the customer. In addition, a contract asset may arise in relation to subscription licenses if the license revenue that is recognized upfront exceeds the amount that we are able to invoice the customer at that time. Contract assets are reclassified to accounts receivable when the rights become unconditional.
The balance for our contract assets and contract liabilities (i.e., deferred revenues) for the periods indicated below were as follows:
As of September 30, 2025
As of June 30, 2025
Short-term contract assets $80,956 $77,920 
Long-term contract assets
50,902 49,293 
Short-term deferred revenues (1)
1,403,126 1,515,382 
Long-term deferred revenues (1)
158,883 168,757 
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(1)Excludes $13.2 million of short-term deferred revenues and $0.4 million of long-term deferred revenues that have been reclassified to Liabilities held for sale as of September 30, 2025, related to the proposed divestiture of the eDOCS business. See Note 17 “Acquisitions and Divestitures” for more details.
The difference in the opening and closing balances of our contract assets and deferred revenues primarily results from the timing difference between our performance and customer payments. We fulfill our obligations under a contract with a customer by transferring products and services in exchange for consideration from the customer. During the three months ended September 30, 2025, we reclassified $26.3 million (three months ended September 30, 2024—$26.1 million) of contract assets to receivables as a result of the right to the transaction consideration becoming unconditional. During the three months ended September 30, 2025 and 2024, respectively, there was no significant impairment loss recognized related to contract assets.
We recognize deferred revenue when we have received consideration or an amount of consideration is due from the customer for future obligations to transfer products or services. Our deferred revenues primarily relate to cloud services and customer support agreements which have been paid for by customers prior to the performance of those services. The amount of revenue that was recognized during the three months ended September 30, 2025 that was included in the deferred revenue balances at June 30, 2025 was $650.1 million (three months ended September 30, 2024—$652.3 million).
Incremental Costs of Obtaining a Contract with a Customer
Incremental costs of obtaining a contract include only those costs that we incur to obtain a contract that we would not have incurred if the contract had not been obtained, such as sales commissions. The following table summarizes the changes in total capitalized costs to obtain a contract, since June 30, 2025:
Capitalized costs to obtain a contract as of June 30, 2025
$129,026 
New capitalized costs incurred11,941 
Amortization of capitalized costs(12,592)
Impact of foreign exchange rate changes616 
Capitalized costs to obtain a contract as of September 30, 2025
$128,991 
During the three months ended September 30, 2025 and 2024, respectively, there was no significant impairment loss recognized related to capitalized costs to obtain a contract. Refer to Note 7 “Prepaid Expenses and Other Assets” for additional information on incremental costs of obtaining a contract.
Remaining Performance Obligations
Remaining performance obligations (RPO) represent contracted revenue that has not yet been recognized. They include amounts recognized as deferred revenue and amounts that are contracted but will be billed and recognized as revenue in future periods.
The following table provides RPO information as of September 30, 2025. The 12-month periods noted below are as of the dates presented, with the remaining balances recognized substantially over the next three years thereafter.
($ in billions)As of September 30, 2025
Total RPO (1)
$4.2 
% recognized as revenue over the following 12 months
59%
Cloud services and subscriptions RPO
$2.5 
% recognized as revenue over the following 12 months
49%
Customer support and other RPO (2)
$1.7 
% recognized as revenue over the following 12 months
74%
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(1)RPO amounts presented may be impacted by certain estimates including currency fluctuations, estimates of customers’ deployment of contracted solutions, changes in the scope or termination of contracts, among other factors, and are therefore subject to change.
(2)Customer support and other RPO is primarily comprised of obligations related to customer support revenues, and to a lesser extent license, professional services and other revenues.
The table above includes RPO related to the proposed divestiture of the eDOCS business which are reported within Liabilities held for sale. As of September 30, 2025, $15.3 million of revenue is expected to be recognized from remaining performance obligations on existing contracts related to eDOCS, of which $15.0 million relates to Customer support. We expect to recognize approximately 96% of the total RPO over the next 12 months.