v3.26.1
Revenue Recognition
 6 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition REVENUE RECOGNITION
Disaggregated Revenue

The following tables present the Company's revenues disaggregated by segment and by Products & Systems and Services revenue (in millions):
Three Months Ended March 31,
20262025
Products & SystemsServicesTotalProducts & SystemsServicesTotal
Americas
$2,875 $1,246 $4,121 $2,711 $1,126 $3,837 
EMEA
799 483 1,282 721 480 1,201 
APAC
525 214 739 433 205 638 
Total$4,199 $1,943 $6,142 $3,865 $1,811 $5,676 
Six Months Ended March 31,
20262025
Products & SystemsServicesTotalProducts & SystemsServicesTotal
Americas
$5,515 $2,449 $7,964 $5,247 $2,217 $7,464 
EMEA
1,561 982 2,543 1,421 937 2,358 
APAC
1,015 417 1,432 882 398 1,280 
Total$8,091 $3,848 $11,939 $7,550 $3,552 $11,102 

Contract Balances

Contract assets relate to the Company’s right to consideration for performance obligations satisfied but not billed. Contract liabilities relate to customer payments received in advance of satisfaction of performance obligations under the contract. Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end of each reporting period. 

The following table presents the location and amount of contract balances in the Company's consolidated statements of financial position (in millions):
Location of contract balancesMarch 31, 2026September 30, 2025
Contract assets - currentAccounts receivable - net$2,365 $2,178 
Contract assets - noncurrentOther noncurrent assets6 9 
Contract liabilities - currentDeferred revenue2,845 2,470 
Contract liabilities - noncurrentOther noncurrent liabilities488 478 

For the three months ended March 31, 2026 and 2025, the Company recognized revenue of $447 million and $393 million, respectively, that was included in the contract liability balance at the end of the prior fiscal year. For the six months ended March 31, 2026 and 2025, the Company recognized revenue of $1,451 million and $1,271 million, respectively, that was included in the contract liability balance at the end of the prior fiscal year.

Performance Obligations

Performance obligations are satisfied at a point in time or over time. The timing of satisfying the performance obligation is typically stipulated by the terms of the contract. As of March 31, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $26.3 billion, of which approximately 67% is expected to be recognized as revenue over the next two years. The remaining performance obligations expected to be recognized in revenue beyond two years primarily relate to large, multi-purpose construction contracts, which include services to be performed over the building's lifetime, with initial contract terms of 25 to 35 years. Future contract modifications could affect both the timing and the amount of the remaining performance obligations. The Company excludes the value of remaining performance obligations of service contracts with a duration of one year or less and open purchase orders from the indirect third-party sales channel that have a short cycle time (generally 60 days or less).

Costs to Obtain or Fulfill a Contract

The Company recognizes the incremental costs incurred to obtain or fulfill a contract with a customer as an asset when these costs are recoverable. These costs consist primarily of sales commissions and design costs that relate to a contract or an anticipated contract that the Company expects to recover. Costs to obtain or fulfill a contract are capitalized when incurred and amortized to expense over the period of contract performance.
The following table presents the location and amount of costs to obtain or fulfill a contract recorded in the Company's consolidated statements of financial position (in millions):

March 31, 2026September 30, 2025
Other current assets$321 $327 
Other noncurrent assets199 249 
Total$520 $576 

Amortization of costs to obtain or fulfill a contract was $123 million and $91 million during the three months ended March 31, 2026 and 2025, respectively. Amortization of costs to obtain or fulfill a contract was $225 million and $175 million during the six months ended March 31, 2026 and 2025, respectively.