v3.26.1
Segment and Other Supplemental Information (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Schedule of Segment Revenue and Segment Gross Profit
The following table presents segment revenue and segment gross profit for the Company:
Three Months Ended
June 30,		Six Months Ended June 30,
In millions2026202520262025
Segment revenue
Product Sales$371 $357 $772 $725 
Consulting Services39 51 82 101 
Total revenue410 408 854 826 
Segment cost of revenue
Product Sales (1)
123 118243 233
Consulting Services (2)
39 5280 103
Total segment cost of revenue162 170 323 336 
Segment gross profit
Product Sales248 239 529 492 
Consulting Services— (1)2 (2)
Total segment gross profit248 238 531 490 
Stock-based compensation expense4 5 8 9 
Acquisition, integration, reorganization, and transformation-related costs1 3 4 3 
Total gross profit243 230 519 478 
Selling, general and administrative expenses120 135 360 251 
Research and development expenses75 71 147 137 
Income from operations$48 $24 $12 $90 
(1) Cost of Product Sales, for the three months ended June 30, included product costs of $65 million in 2026 and $59 million in 2025 for Public Cloud fees and direct product and third-party software costs associated with the Company's perpetual product sales. Depreciation expense for the three months ended June 30, included in Cost of Product Sales, was $18 million in 2026, and $19 million in 2025. The remaining cost of Product Sales included payroll and benefits costs, and corporate allocations including back-office information technology, real estate, and other support services.
Cost of Product Sales, for the six months ended June 30, included product costs of $120 million in 2026 and $123 million in 2025 for Public Cloud fees and direct product and third-party software costs associated with the Company's perpetual product sales. Depreciation expense for the six months ended June 30, included in Cost of Product Sales, was $38 million in 2026, and $35 million in 2025. The remaining cost of Product Sales included payroll and benefits costs, and corporate allocations including back-office information technology, real estate, and other support services.     
(2) Cost of Consulting Services, for the three months ended June 30, included payroll and benefit costs of $26 million in 2026 and $33 million in 2025. The remaining cost of Consulting Services included corporate allocations, including back-office information technology, real estate, and other support services.

Cost of Consulting Services, for the six months ended June 30, included payroll and benefit costs of $54 million in 2026 and $65 million in 2025. The remaining cost of Consulting Services included corporate allocations, including back-office information technology, real estate, and other support services. 

Certain items, including stock-based compensation and reorganization-related costs, were excluded from segment gross profit to conform to the way the Company manages and reviews the results by segment.