UNEARNED REVENUE

3 Months Ended

Sep. 30, 2025

Revenue from Contract with Customer [Abstract]

UNEARNED REVENUE

NOTE 11 — UNEARNED REVENUE

Unearned revenue by segment was as follows:

(In millions)
	September 30, 2025		June 30, 2025
Productivity and Business Processes	$	46,357	$	50,567
Intelligent Cloud		12,659		14,022
More Personal Computing		2,517		2,676
Total	$	61,533	$	67,265

Changes in unearned revenue were as follows:

(In millions)
Three Months Ended September 30, 2025
Balance, beginning of period	$	67,265
Deferral of revenue		44,297
Recognition of unearned revenue		(50,029	)
Balance, end of period	$	61,533

Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $398 billion as of September 30, 2025, of which $392 billion is related to the commercial portion of revenue. We expect to recognize approximately 40% of our total company remaining performance obligation revenue over the next 12 months and the remainder thereafter.