v3.26.1
UNEARNED REVENUE
 12 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
UNEARNED REVENUE

NOTE 12 — UNEARNED REVENUE

Unearned revenue by segment was as follows:

 

 

(In millions)

 

 

 

 

June 30,

2026

2025

 

 

Productivity and Business Processes

 

$

57,936

$

50,567

Intelligent Cloud

14,942

14,022

More Personal Computing

2,834

 

2,676

 

 

 

 

 

 

 

Total

$

75,712

$

67,265

 

 

 

Changes in unearned revenue were as follows:

 

(In millions)

 

 

 

 

 

Year Ended June 30, 2026

 

 

 

Balance, beginning of period

 

$

67,265

Deferral of revenue

 

194,184

Recognition of unearned revenue

 

(185,737

)

 

 

 

 

 

 

 

 

Balance, end of period

 

$

75,712

 

 

 

 

Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts expected to be invoiced and recognized as revenue in future periods, was $684 billion as of June 30, 2026. Revenue allocated to remaining performance obligations related to the commercial portion of revenue was $678 billion as of June 30, 2026, with a weighted average duration of approximately 2.3 years. We expect to recognize approximately 30% of both our total company remaining performance obligation revenue and commercial remaining performance obligation revenue over the next 12 months and the remainder thereafter.