v3.25.2
Revenue Recognition
 9 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Substantially all of our revenue is from contracts with customers. We recognize revenue as promised products are transferred to, or services are performed for, customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those products and services. Our offerings consist of industrial automation and information products, solutions, and services.
Our products include hardware, software, and configured-to-order products. Our solutions include custom-engineered systems and software. Our services include customer technical support and repair, asset management and optimization consulting, and training. Also included in our services is a portion of revenue related to spare parts that are managed within our services offering.
Our operations are comprised of the Intelligent Devices segment, the Software & Control segment, and the Lifecycle Services segment. Revenue from the Intelligent Devices segment is predominantly comprised of product sales, which are recognized at a point in time. Revenue from the Software & Control segment is comprised of product sales, which are recognized at a point in time, and software products, which may be recognized over time if certain criteria are met. Revenue from the Lifecycle Services segment is predominantly comprised of solutions and services, which are primarily recognized over time. See Note 16 for more information.
In most countries, we sell primarily through independent distributors in conjunction with our direct sales force. We sell large systems and service offerings principally through our direct sales force, though opportunities are sometimes identified through distributors.
Unfulfilled Performance Obligations
As of June 30, 2025, we expect to recognize approximately $1,405 million of revenue in future periods from unfulfilled performance obligations from existing contracts with customers. We expect to recognize revenue of approximately $830 million from our remaining performance obligations over the next 12 months with the remaining balance recognized thereafter.
We have applied the practical expedient to exclude the value of remaining performance obligations for (i) contracts with an original term of one year or less and (ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice for services performed. The amounts above also do not include the impact of contract renewal options that are unexercised as of June 30, 2025.
Disaggregation of Revenue
The following table presents our revenue disaggregation by geographic region for our three operating segments (in millions). We attribute sales to the geographic regions based on the country of destination.
 Three Months Ended June 30, 2025Three Months Ended June 30, 2024
Intelligent DevicesSoftware & ControlLifecycle ServicesTotalIntelligent DevicesSoftware & ControlLifecycle ServicesTotal
North America$636 $431 $287 $1,354 $636 $336 $296 $1,268 
Europe, Middle East, and Africa160 94 138 392 144 76 136 356 
Asia Pacific103 70 93 266 99 58 103 260 
Latin America69 34 29 132 78 43 46 167 
Total Company Sales$968 $629 $547 $2,144 $957 $513 $581 $2,051 
 Nine Months Ended June 30, 2025Nine Months Ended June 30, 2024
Intelligent DevicesSoftware & ControlLifecycle ServicesTotalIntelligent DevicesSoftware & ControlLifecycle ServicesTotal
North America$1,755 $1,199 $838 $3,792 $1,877 $1,085 $847 $3,809 
Europe, Middle East, and Africa446 245 391 1,082 469 272 402 1,143 
Asia Pacific275 177 292 744 297 207 302 806 
Latin America194 105 109 408 215 122 134 471 
Total Company Sales$2,670 $1,726 $1,630 $6,026 $2,858 $1,686 $1,685 $6,229 


Contract Liabilities
Contract liabilities primarily relate to consideration received in advance of performance under the contract.
Below is a summary of our Contract liabilities balance, the portion not expected to be recognized within twelve months is included within Other liabilities in the Consolidated Balance Sheet (in millions):
June 30, 2025June 30, 2024
Balance as of beginning of year$653 $654 
Balance as of end of period720 669 
The most significant changes in our Contract liabilities balance during the nine months ended June 30, 2025, and June 30, 2024, were due to amounts billed during the period, partially offset by revenue recognized on amounts billed during the period and revenue recognized that was included in the Contract liabilities balance at the beginning of the period.
In the nine months ended June 30, 2025, we recognized revenue of approximately $538 million that was included in the Contract liabilities balance at September 30, 2024. In the nine months ended June 30, 2024, we recognized revenue of approximately $487 million that was included in the Contract liabilities balance at September 30, 2023. We did not have a material amount of revenue recognized in the nine months ended June 30, 2025 and 2024, from performance obligations satisfied or partially satisfied in previous periods.