Revenue

12 Months Ended

Mar. 31, 2026

22.

Revenue

(1)	Contract balances

Receivables from contracts with customers, contract assets and contract liabilities are comprised of the following:


	Yen in millions
	April 1		March 31
	2024		2025		2026
Receivables from contracts with customers *1		1,931,631		1,736,079		1,783,627
Contract assets *2		17,820		7,973		4,233
Contract liabilities *3		534,432		632,912		639,022

*1	Receivables from contracts with customers are included in the consolidated statements of financial position as “Trade and other receivables, and contract assets” and “Other financial assets,” non-current.

*2	Contract assets are included in the consolidated statements of financial position as “Trade and other receivables, and contract assets” and “Other non-current assets.”

*3	Contract liabilities are included in the consolidated statements of financial position as “ Contract liabilities” and “Other non-current liabilities.”

Contract liabilities principally relate to customer advances received prior to performance. Revenues of 444,964 million yen, 461,340 million yen and 561,184 million yen were recognized during the fiscal years ended March 31, 2024, 2025 and 2026, respectively, which were included in the balance of contract liabilities as of April 1, 2023, 2024 and 2025, respectively. The amount of revenue recognized from performance obligations satisfied or partially satisfied in the previous periods is not significant.

(2)	Performance obligations

Remaining (unsatisfied or partially unsatisfied) performance obligations represent future revenues not yet recorded for firm orders that have not yet been performed. Sony applies practical expedients to exclude contracts with an expected original duration of one year or less. The following table shows the summary of the transaction prices allocated to remaining performance obligations that are unsatisfied as of March 31, 2025 and 2026, respectively, of which

approximately

half are expected to be recognized within one year and substantially all within three years. The amount of the transaction price related to variable consideration is included only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue to be recognized will not occur.


	Yen in millions
	March 31
	2025		2026
Pictures - Motion Pictures and Television Productions *1		748,517		1,150,679
Pictures - Media Networks		9,094		18,656
Music *2		116,184		150,361
Others		69,587		80,405

1 For Motion Pictures and Television Productions in the Pictures segment, Sony has included all contracts regardless of duration. 2 The amount included in the Music segment primarily consists of minimum royalty guarantees or fixed fees in contracts related to license revenue for ongoing access to an evolving library of content.

(3)	Contract costs

Contract costs are comprised as follows:


	Yen in millions
	March 31
	2025		2026
Incremental costs of obtaining a contract		12,901		27,338

Sony

applies practical expedients to recognize the incremental costs of obtaining a contract as an expense if the amortization period of the asset that otherwise would have been recognized is one year or less. The amortization of

4,562

million yen,

2,380

million yen and

3,919

million yen was recognized during the fiscal years ended March 31, 2024, 2025 and 2026, respectively. The incremental costs of obtaining a contract are primarily recognized in the ET&S segment for the internet-related service business and amortized to expense over the customer’s usage period for such service.

(4)	Disaggregation of revenue

For the breakdown of sales by segments, product categories and geographies, refer to Note 4.