Revenue Recognition

6 Months Ended

Mar. 31, 2025

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Substantially all of our revenue is from contracts with customers. We recognize revenue as promised products are transferred to, or services are performed for, customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those products and services. Our offerings consist of industrial automation and information products, solutions, and services.

Our products include hardware, software, and configured-to-order products. Our solutions include custom-engineered systems and software. Our services include customer technical support and repair, asset management and optimization consulting, and

training. Also included in our services is a portion of revenue related to spare parts that are managed within our services offering.

Our operations are comprised of the Intelligent Devices segment, the Software & Control segment, and the Lifecycle Services segment. Revenue from the Intelligent Devices segment is predominantly comprised of product sales, which are recognized at a point in time. Revenue from the Software & Control segment is comprised of product sales, which are recognized at a point in time, and software products, which may be recognized over time if certain criteria are met. Revenue from the Lifecycle Services segment is predominantly comprised of solutions and services, which are primarily recognized over time. See Note 16 for more information.

In most countries, we sell primarily through independent distributors in conjunction with our direct sales force. We sell large systems and service offerings principally through our direct sales force, though opportunities are sometimes identified through distributors.

Unfulfilled Performance Obligations

As of March 31, 2025, we expect to recognize approximately $1,365 million of revenue in future periods from unfulfilled performance obligations from existing contracts with customers. We expect to recognize revenue of approximately $805 million from our remaining performance obligations over the next 12 months with the remaining balance recognized thereafter.

We have applied the practical expedient to exclude the value of remaining performance obligations for (i) contracts with an original term of one year or less and (ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice for services performed. The amounts above also do not include the impact of contract renewal options that are unexercised as of March 31, 2025.

Disaggregation of Revenue

The following table presents our revenue disaggregation by geographic region for our three operating segments (in millions). We attribute sales to the geographic regions based on the country of destination.

	Three Months Ended March 31, 2025								Three Months Ended March 31, 2024
	Intelligent Devices		Software & Control		Lifecycle Services		Total		Intelligent Devices		Software & Control		Lifecycle Services		Total
North America	$	599	$	403	$	286	$	1,288	$	637	$	362	$	295	$	1,294
Europe, Middle East, and Africa	151		78		129		358		159		96		144		399
Asia Pacific	86		52		89		227		100		70		100		270
Latin America	60		35		33		128		78		41		44		163
Total Company Sales	$	896	$	568	$	537	$	2,001	$	974	$	569	$	583	$	2,126

	Six Months Ended March 31, 2025								Six Months Ended March 31, 2024
	Intelligent Devices		Software & Control		Lifecycle Services		Total		Intelligent Devices		Software & Control		Lifecycle Services		Total
North America	$	1,119	$	768	$	551	$	2,438	$	1,241	$	749	$	551	$	2,541
Europe, Middle East, and Africa	286		151		253		690		325		196		266		787
Asia Pacific	172		107		199		478		198		149		199		546
Latin America	125		71		80		276		137		79		88		304
Total Company Sales	$	1,702	$	1,097	$	1,083	$	3,882	$	1,901	$	1,173	$	1,104	$	4,178

Contract Liabilities

Contract liabilities primarily relate to consideration received in advance of performance under the contract.

Below is a summary of our Contract liabilities balance, the portion not expected to be recognized within twelve months is included within Other liabilities in the Consolidated Balance Sheet (in millions):

	March 31, 2025		March 31, 2024
Balance as of beginning of year	$	653	$	654
Balance as of end of period	714		678

The most significant changes in our Contract liabilities balance during the six months ended March 31, 2025, were due to amounts billed during the period, partially offset by revenue recognized that was included in the Contract liabilities balance at the beginning of the period and revenue recognized on amounts billed during the period. The most significant changes in our Contract liabilities balance during the six months ended March 31, 2024, were due to amounts billed during the period, partially offset by revenue recognized on amounts billed during the period and revenue recognized that was included in the Contract liabilities balance at the beginning of the period.

In the six months ended March 31, 2025, we recognized revenue of approximately $506 million that was included in the Contract liabilities balance at September 30, 2024. In the six months ended March 31, 2024, we recognized revenue of approximately $405 million that was included in the Contract liabilities balance at September 30, 2023. We did not have a material amount of revenue recognized in the six months ended March 31, 2025 and 2024, from performance obligations satisfied or partially satisfied in previous periods.