v3.26.1
Revenue Recognition
 9 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Disaggregation of Revenue
The Company’s revenue consists of the following categories, which aggregate into the segments – Recorded Music and Music Publishing:
Three Months Ended
June 30,		Nine Months Ended
June 30,
2026202520262025
(in millions)
Revenue by Type
Digital$1,016 $929 $2,967 $2,643 
Physical137 119 426 397 
Total digital and physical
1,153 1,048 3,393 3,040 
Artist services and expanded-rights224 195 619 508 
Licensing111 111 336 326 
Total Recorded Music1,488 1,354 4,348 3,874 
Performance59 58 181 167 
Digital235 204 674 599 
Mechanical19 16 54 46 
Synchronization60 54 170 142 
Other4 4 13 15 
Total Music Publishing377 336 1,092 969 
Intersegment eliminations(1)(1)(4)(4)
Total revenues
$1,864 $1,689 $5,436 $4,839 
Revenue by geographical location
U.S. Recorded Music$587 $536 $1,729 $1,565 
U.S. Music Publishing194 186 562 520 
Total U.S.781 722 2,291 2,085 
International Recorded Music901 818 2,619 2,309 
International Music Publishing183 150 530 449 
Total international
1,084 968 3,149 2,758 
Intersegment eliminations(1)(1)(4)(4)
Total revenues
$1,864 $1,689 $5,436 $4,839 
Sales Returns and Uncollectible Accounts
Based on management’s analysis of sales returns, refund liabilities of $16 million and $17 million were established at June 30, 2026 and September 30, 2025, respectively.
Based on management’s analysis of estimated credit losses, reserves of $27 million were established at both June 30, 2026 and September 30, 2025.
Deferred Revenue
Deferred revenue increased by $663 million during the nine months ended June 30, 2026 related to cash received from customers for fixed fees and minimum guarantees in advance of performance, including amounts recognized in the period. Revenues of $230 million were recognized during the nine months ended June 30, 2026 related to the balance of deferred revenue at September 30, 2025. There were no other significant changes to deferred revenue during the reporting period.
Performance Obligations
For the three months ended June 30, 2026 and June 30, 2025, the Company recognized revenue of $9 million and $10 million, respectively, from performance obligations satisfied in previous periods. For the nine months ended June 30, 2026 and June 30, 2025, the Company recognized revenue of $47 million and $67 million, respectively, from performance obligations satisfied in previous periods.
Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at June 30, 2026 are as follows:
Rest of FY26FY27FY28ThereafterTotal
(in millions)
Remaining performance obligations$148 $420 $172 $43 $783 
Total$148 $420 $172 $43 $783