v3.26.1
REVENUES
 12 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Disaggregation of Revenue
We have four revenue streams: cloud services and subscriptions, customer support, license, and professional service and other. The following tables disaggregate our revenue by significant geographic area, based on the location of our direct end customer, by type of performance obligation and timing of revenue recognition for the periods indicated:
Year Ended June 30,
202620252024
Total Revenues by Geography:
Americas (1)
$2,896,043 $2,938,709 $3,341,881 
EMEA (2)
1,881,126 1,751,543 1,878,470 
Asia Pacific (3)
469,232 478,153 549,226 
Total revenues$5,246,401 $5,168,405 $5,769,577 
______________________
(1)Americas consists of countries in North, Central and South America.
(2)EMEA consists of countries in Europe, the Middle East and Africa.
(3)Asia Pacific primarily consists of Australia, Japan, Singapore, India and China.
Year Ended June 30,
202620252024
Total Revenues by Type of Performance Obligation:
Recurring revenues (4)
Cloud services and subscriptions revenue
$1,958,554 $1,856,474 $1,820,524 
Customer support revenue
2,287,449 2,334,037 2,713,297 
Total recurring revenues
$4,246,003 $4,190,511 $4,533,821 
License revenue (perpetual, term and subscriptions)678,465 625,614 834,162 
Professional service and other revenue321,933 352,280 401,594 
Total revenues$5,246,401 $5,168,405 $5,769,577 
______________________
(1)Recurring revenue is defined as the sum of Cloud services and subscriptions revenue and Customer support revenue.
Year Ended June 30,
202620252024
Total Revenues by Timing of Revenue Recognition:
Point in time$678,465 $625,614 $834,162 
Over time (including professional service and other revenue)4,567,936 4,542,791 4,935,415 
Total revenues$5,246,401 $5,168,405 $5,769,577 
Revenue by Product Categories
We have seven product categories (previously referred to as business clouds) as part of our data management solutions: Content, Business Network, IT Operations Management (ITOM, also known as Observability and Service Management (OSM)), Cybersecurity (Enterprise), Cybersecurity (Small and Medium-Sized Businesses (SMB) & Consumer), Application Delivery Management (ADM, also known as DevOps), and Analytics. The following table disaggregates total revenue and total cloud services and subscription revenue by product category for the periods indicated. The Company believes this presentation is useful as it provides additional information:
Year Ended June 30,
202620252024
Total Revenues by Product Categories
Content$2,240,193 $2,135,947 $2,054,882 
Business Network644,233 632,914 642,338 
ITOM454,358 452,693 522,677 
Cybersecurity (Enterprise)689,733 692,269 731,384 
Cybersecurity (SMB & Consumer)516,631 543,436 624,368 
ADM (1)
502,070 475,895 932,012 
Analytics199,183 235,251 261,916 
Total revenues by product categories$5,246,401 $5,168,405 $5,769,577 
Total Cloud Services and Subscriptions Revenue by Product Categories
Content$578,203 $481,396 $412,358 
Business Network611,610 595,005 601,376 
ITOM37,373 20,640 16,476 
Cybersecurity (Enterprise)75,460 83,767 86,592 
Cybersecurity (SMB & Consumer)467,773 494,266 514,406 
ADM (1)
118,482 106,016 95,283 
Analytics69,653 75,384 94,033 
Total cloud services and subscriptions revenues by product categories$1,958,554 $1,856,474 $1,820,524 
______________________
(1)ADM was previously named Application Automation.
Contract Balances
A contract asset, net of allowance for credit losses, will be recorded if we have recognized revenue but do not have an unconditional right to the related consideration from the customer. For example, this will be the case if implementation services offered in a cloud arrangement are identified as a separate performance obligation and are provided to a customer prior to us being able to bill the customer. In addition, a contract asset may arise in relation to subscription licenses if the license revenue that is recognized upfront exceeds the amount that we are able to invoice the customer at that time. Contract assets are reclassified to accounts receivable when the rights become unconditional.
The balance for our contract assets and contract liabilities (i.e., deferred revenues) for the periods indicated below were as follows:
As of June 30, 2026
As of June 30, 2025
Short-term contract assets$77,447 $77,920 
Long-term contract assets59,872 49,293 
Short-term deferred revenues1,483,234 1,515,382 
Long-term deferred revenues159,912 168,757 
The difference in the opening and closing balances of our contract assets and deferred revenues primarily results from the timing difference between our performance and customer payments. We fulfill our obligations under a contract with a customer by transferring products and services in exchange for consideration from the customer. During the year ended June 30, 2026, we reclassified $127.6 million (year ended June 30, 2025—$114.1 million) of contract assets to receivables as a result of the right to the transaction consideration becoming unconditional. During the years ended June 30, 2026, 2025 and 2024 respectively, there was no significant impairment loss recognized related to contract assets.
We recognize deferred revenue when we have received consideration, or an amount of consideration is due from the customer for future obligations to transfer products or services. Our deferred revenues primarily relate to cloud services and customer support agreements which have been paid for by customers prior to the performance of those services. The amount of revenue that was recognized during the year ended June 30, 2026 that was included in the deferred revenue balances at June 30, 2025 was $1.5 billion (year ended June 30, 2025 and 2024 —$1.5 billion and $1.7 billion, respectively).
Incremental Costs of Obtaining a Contract with a Customer
Incremental costs of obtaining a contract include only those costs that we incur to obtain a contract that we would not have incurred if the contract had not been obtained, such as sales commissions. The following table summarizes the changes in total capitalized costs to obtain a contract, since June 30, 2023:
Capitalized costs to obtain a contract as of June 30, 2023
$97,207 
New capitalized costs incurred60,507 
Amortization of capitalized costs(44,016)
Impact of foreign exchange rate changes(246)
Divestiture of AMC business (Note 19)
(3,964)
Capitalized costs to obtain a contract as of June 30, 2024
109,488 
New capitalized costs incurred60,165 
Amortization of capitalized costs(43,129)
Impact of foreign exchange rate changes2,502 
Capitalized costs to obtain a contract as of June 30, 2025
129,026 
New capitalized costs incurred80,652 
Amortization of capitalized costs(50,906)
Impact of foreign exchange rate changes(953)
Divestiture of Vertica business (Note 19)
(1,101)
Capitalized costs to obtain a contract as of June 30, 2026
$156,718 
During the years ended June 30, 2026, 2025 and 2024 respectively, there was no significant impairment loss recognized related to capitalized costs to obtain a contract. Refer to Note 9 “Prepaid Expenses and Other Assets” for additional information on incremental costs of obtaining a contract.
Remaining Performance Obligations
Remaining performance obligations (RPO) represent contracted revenue that has not yet been recognized. They include amounts recognized as deferred revenue and amounts that are contracted but will be billed and recognized as revenue in future periods.
The following table provides RPO information as of June 30, 2026:
% recognized as revenue over the following
($ in billions)As of
June 30, 2026
Within 1 year
1 to 2 years
2 to 3 years
Thereafter
Total RPO (1)
$4.6 57%
21%
12%
10%
Cloud services and subscriptions RPO
$2.8 48%
24%
15%
13%
Customer support and other RPO (2)
$1.8 72%
17%
7%
4%
______________________
(1)RPO amounts presented may be impacted by certain estimates including currency fluctuations, estimates of customers’ deployment of contracted solutions, changes in the scope or termination of contracts, among other factors, and are therefore subject to change.
(2)Customer support and other RPO is primarily comprised of obligations related to customer support revenues, and to a lesser extent license, professional services and other revenues.
Refer to Note 2 “Accounting Policies and Recent Accounting Pronouncements” for additional information on our revenue policy.