v3.25.2
UNEARNED REVENUE
 12 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
UNEARNED REVENUE

NOTE 12 — UNEARNED REVENUE

Unearned revenue by segment was as follows:

 

(In millions)

 

 

 

 

June 30,

2025

2024

 

 

Productivity and Business Processes

 

$

50,567

$

43,599

Intelligent Cloud

14,022

13,683

More Personal Computing

2,676

 

2,902

 

 

 

 

 

 

 

Total

$

67,265

$

60,184

 

 

 

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business. Refer to Note 1 – Accounting Policies for further information.

Changes in unearned revenue were as follows:

 

(In millions)

 

 

 

 

 

Year Ended June 30, 2025

 

 

 

Balance, beginning of period

 

$

60,184

Deferral of revenue

 

186,957

Recognition of unearned revenue

 

(179,876

)

 

 

 

 

 

 

 

 

Balance, end of period

 

$

67,265

 

 

 

 

Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $375 billion as of June 30, 2025, of which $368 billion is related to the commercial portion of revenue. We expect to recognize approximately 40% of our total company remaining performance obligation revenue over the next 12 months and the remainder thereafter.