v3.26.3
REVENUES
 3 Months Ended
Sep. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Disaggregation of Revenue
We have four revenue streams: cloud services and subscriptions, client 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 client, by type of performance obligation and timing of revenue recognition for the periods indicated:
Three Months Ended September 30,
20262025
Total Revenues by Geography:
Americas (1)
$703,362 $733,576 
EMEA (2)
422,368 438,802 
Asia Pacific (3)
110,904 115,757 
Total revenues$1,236,634 $1,288,135 
______________________
(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.
Three Months Ended September 30,
20262025
Total Revenues by Type of Performance Obligation:
Recurring revenues (1)
Cloud services and subscriptions revenue$505,469 $484,509 
Client support revenue534,111 586,845 
Total recurring revenues$1,039,580 $1,071,354 
License revenue (perpetual, term and subscriptions) 123,847 134,548 
Professional service and other revenue73,207 82,233 
Total revenues$1,236,634 $1,288,135 
______________________
(1)Recurring revenue is defined as the sum of Cloud services and subscriptions revenue and Client support revenue.
Three Months Ended September 30,
20262025
Total Revenues by Timing of Revenue Recognition:
Point in time $123,847 $134,548 
Over time (including professional service and other revenue)1,112,787 1,153,587 
Total revenues$1,236,634 $1,288,135 
Revenue by Product Categories
In the first quarter of Fiscal 2027, as part of the Company’s enterprise assessment, we reclassified certain products and disclosed an additional product category, Portfolio. The Portfolio category represents mature, non-core products that are primarily on-premise solutions, that we continue to provide maintenance and support services. The Company believes this presentation provides additional information regarding how management views revenue by product category.
As a result of these changes, the Company’s data management solutions are now reported within eight product categories: Content, Business Network, IT Operations Management (ITOM), Cybersecurity (Enterprise), Cybersecurity (Small and Medium-Sized Businesses (SMB) & Consumer), Application Delivery Management (ADM), Analytics, and Portfolio.
In addition, certain products were reclassified from the Cybersecurity (Enterprise) product category to the Cybersecurity (SMB & Consumer) product category. Historical revenues related to the eDOCS business, which was divested in Fiscal 2026, and previously included in Analytics, were reclassified to the Portfolio product category.
Prior period amounts have been reclassified to conform to the current period presentation. These reclassifications affected only the presentation of revenue by product category and had no impact on previously reported consolidated revenue, operating income, net income, earnings per share, or cash flows.
The following table disaggregates total revenue and total cloud services and subscription revenue by product category for the periods indicated:
Three Months Ended September 30,
20262025
Total Revenues by Product Categories
Content$523,010 $477,874 
Business Network160,894 160,501 
ITOM84,734 96,604 
Cybersecurity (Enterprise)95,830 109,337 
Cybersecurity (SMB & Consumer)127,717 140,189 
ADM 103,970 120,911 
Analytics20,721 40,760 
Portfolio119,758 141,959 
Total revenues by Product Categories$1,236,634 $1,288,135 
Total Cloud services and subscriptions revenue by Product Categories
Content$162,895 $134,914 
Business Network153,551 151,989 
ITOM10,198 6,505 
Cybersecurity (Enterprise)11,875 10,883 
Cybersecurity (SMB & Consumer)116,829 129,783 
ADM 29,296 31,167 
Analytics18,284 16,279 
Portfolio2,541 2,989 
Total cloud services and subscriptions revenues by Product Categories$505,469 $484,509 
The following table presents revenue by product category for the three months ended September 30, 2025 as previously reported, as well as the impact of the reclassification to the current presentation following the establishment of the Portfolio product category:
Three Months Ended
September 30, 2025
As previously reportedImpact of ReclassificationAs reclassified
Total Revenues by Product Categories
Content$523,464 $(45,590)$477,874 
Business Network160,711 (210)160,501 
ITOM113,444 (16,840)96,604 
Cybersecurity (Enterprise)180,747 (71,410)109,337 
Cybersecurity (SMB & Consumer)131,727 8,462 140,189 
ADM 122,096 (1,185)120,911 
Analytics55,946 (15,186)40,760 
Portfolio— 141,959 141,959 
Total revenues by Product Categories$1,288,135 $— $1,288,135 
Total Cloud services and subscriptions revenue by Product Categories
Content$135,612 $(698)$134,914 
Business Network152,199 (210)151,989 
ITOM6,763 (258)6,505 
Cybersecurity (Enterprise)21,017 (10,134)10,883 
Cybersecurity (SMB & Consumer)121,321 8,462 129,783 
ADM 31,167 — 31,167 
Analytics16,430 (151)16,279 
Portfolio— 2,989 2,989 
Total cloud services and subscriptions revenues by Product Categories$484,509 $— $484,509 
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 client. 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 client prior to us being able to bill the client. 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 client at that time. Contract assets are reclassified to accounts receivable when the rights become unconditional.
The balances for our contract assets and contract liabilities (i.e., deferred revenues) for the periods indicated below were as follows:
As of
September 30, 2026
As of
June 30, 2026
Short-term contract assets $72,647 $77,447 
Long-term contract assets
62,679 59,872 
Short-term deferred revenues 1,378,557 1,483,234 
Long-term deferred revenues 151,137 159,912 
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 client payments. We fulfill our obligations under a contract with a client by transferring products and services in exchange for consideration from the client. During the three months ended September 30, 2026, we reclassified $29.5 million (three months ended September 30, 2025—$26.3 million) of contract assets to receivables as a result of the right to the transaction consideration becoming
unconditional. During the three months ended September 30, 2026 and 2025, 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 client for future obligations to transfer products or services. Our deferred revenues primarily relate to cloud services and client support agreements which have been paid for by clients prior to the performance of those services. The amount of revenue that was recognized during the three months ended September 30, 2026 that was included in the deferred revenue balances at June 30, 2026 was $621.1 million (three months ended September 30, 2025—$650.1 million).
Incremental Costs of Obtaining a Contract with a Client
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, 2026:
Capitalized costs to obtain a contract as of June 30, 2026
$156,718 
New capitalized costs incurred10,142 
Amortization of capitalized costs(13,492)
Impact of foreign exchange rate changes228 
Capitalized costs to obtain a contract as of September 30, 2026
$153,596 
During the three months ended September 30, 2026 and 2025, there was no significant impairment loss recognized related to capitalized costs to obtain a contract. See Note 7 “Prepaid Expenses and Other Assets” for additional information on incremental costs of obtaining a contract.
Remaining Performance Obligations
Remaining performance obligations (RPO) represent contracted revenue that has not yet been recognized. They include amounts recognized as deferred revenue and amounts that are contracted but will be billed and recognized as revenue in future periods.
The following table provides RPO information as of September 30, 2026:
% recognized as revenue over the following
($ in billions)
As of
September 30, 2026
Within 1 year
1 to 2 years
2 to 3 years
Thereafter
Total RPO (1)
$4.5 57%
21%
12%
10%
Cloud services and subscriptions RPO
$2.8 49%
24%
15%
12%
Client support and other RPO (2)
$1.7 71%
17%
7%
5%
______________________
(1)RPO amounts presented may be impacted by certain estimates including currency fluctuations, estimates of clients’ deployment of contracted solutions, changes in the scope or termination of contracts, among other factors, and are therefore subject to change.
(2)Client support and other RPO is primarily comprised of obligations related to client support revenues, and to a lesser extent license, professional services and other revenues.