Revenue from Contracts with Customers

12 Months Ended

Sep. 30, 2025

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

3. Revenue from Contracts with Customers

Receivables, Contract Assets, and Contract Liabilities

(in thousands)	September 30,
	2025		2024
Short-term receivables	$	1,001,085	$	861,953
Long-term receivables	$	378,941	$	200,099
Contract asset	$	11,044	$	14,410
Deferred revenue	$	827,065	$	775,274

As of September 30, 2025, all our contract assets are expected to be transferred to receivables within the next 12 months and therefore are included in Other current assets. As of September 30, 2024, all our contract assets were included in Other current assets.

Approximately $10.9 million of the September 30, 2024 contract asset balance was transferred to receivables during the year ended September 30, 2025 as a result of the right to payment becoming unconditional. Additions to contract asset of approximately $7.5 million primarily related to revenue recognized in the period, net of billings. There were no impairments of contract assets in the year ended September 30, 2025.

During the year ended September 30, 2025, we recognized $748.8 million of revenue that was included in deferred revenue as of September 30, 2024. The remainder of the change in the Deferred revenue balance was driven by additional deferrals of $800.6 million, primarily from new billings, as well as an increase in the balance resulting from changes in foreign currency exchange rates. For subscription contracts, we generally invoice customers annually.

Costs to Obtain or Fulfill a Contract

We recognize an asset for the incremental costs of obtaining a contract with a customer if the benefit of those costs is expected to be longer than one year. These deferred costs (primarily commissions) are amortized proportionately related to revenue over 5 years, which is generally longer than the term of the initial contract because of anticipated renewals as commissions for renewals are not commensurate with commissions related to our initial contracts. As of September 30, 2025 and September 30, 2024, deferred costs of $45.1 million and $42.5 million, respectively, were included in Other current assets and $78.2 million and $76.4 million, respectively, were included in Other assets. Amortization expense related to costs to obtain a contract with a customer was $54.0 million, $52.0 million, and $53.4 million in the years ended September 30, 2025, 2024, and 2023, respectively. There were no substantial impairments of the contract cost asset in the years ended September 30, 2025 and 2024.

Remaining Performance Obligations (RPO)

Our contracts with customers include transaction price amounts allocated to performance obligations that will be satisfied and recognized as revenue at a later date. The value of RPO and timing of recognition may be impacted by several factors, including the performance obligation type, duration and timing of commencement, as well as foreign currency exchange rate fluctuations. As of September 30, 2025, RPO totaled $2,870.7 million, of which $827.1 million is recorded in Deferred revenue and $2,043.6 million is not yet recorded in the Consolidated Balance Sheets. Of the total, we expect to recognize approximately 55% over the next 12 months, 24% over the next 13 to 24 months, and the remaining amount thereafter.

Disaggregation of Revenue

(in thousands)	Year ended September 30,
	2025		2024		2023
Recurring revenue(1)	$	2,600,514	$	2,134,030	$	1,907,918
Perpetual license		31,375		32,196		38,640
Professional services		107,337		132,246		150,495
Total revenue	$	2,739,226	$	2,298,472	$	2,097,053

(1)Recurring revenue is comprised of on-premises subscription, perpetual support, SaaS, and hosting services revenue.

We report revenue by the following two product groups:

(in thousands)	Year ended September 30,
	2025		2024		2023
Product lifecycle management (PLM)	$	1,741,310	$	1,459,078	$	1,330,316
Computer-aided design (CAD)		997,916		839,394		766,737
Total revenue	$	2,739,226	$	2,298,472	$	2,097,053

We license products to customers worldwide. Our sales and marketing operations outside the United States are conducted principally through our international sales subsidiaries throughout Europe and the Asia Pacific region. Our international revenue is presented based on the location of our customer. Revenue for the geographic regions in which we operate is presented below.

(in thousands)	Year ended September 30,
	2025		2024		2023
Americas(1)	$	1,327,229	$	1,087,929	$	1,023,273
Europe(2)		995,094		859,387		753,796
Asia Pacific		416,903		351,156		319,984
Total revenue	$	2,739,226	$	2,298,472	$	2,097,053

(1)Includes revenue in the United States totaling $1,287.5 million, $1,057.3 million, and $993.8 million for 2025, 2024 and 2023, respectively.

(2)Includes revenue in Germany totaling $368.8 million, $330.5 million, and $292.0 million for 2025, 2024 and 2023, respectively.