3. Revenue Recognition
Revenue disaggregated by geographical area was as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| (In millions) | | 2025 | | 2024 | | 2023 |
| United Kingdom | | $ | 6,296 | | | $ | 5,248 | | | $ | 3,664 | |
| United States | | 3,158 | | | 3,087 | | | 2,909 | |
| Netherlands | | 1,035 | | | 922 | | | 831 | |
| France | | 822 | | | 809 | | | 830 | |
| Spain | | 651 | | | 571 | | | 529 | |
| Italy | | 405 | | | 391 | | | 382 | |
| Other | | 811 | | | 681 | | | 633 | |
| Total | | $ | 13,178 | | | $ | 11,709 | | | $ | 9,778 | |
The Company’s revenue can also be disaggregated by various verticals, reflecting the customers’ principal industry. Revenue disaggregated by industry was as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| (In millions) | | 2025 | | 2024 | | 2023 |
| Omnichannel retail | | $ | 6,406 | | | $ | 5,360 | | | $ | 4,100 | |
| Technology and consumer electronics | | 1,644 | | | 1,541 | | | 1,467 | |
| Industrial and manufacturing | | 1,529 | | | 1,339 | | | 1,078 | |
| Food and beverage | | 1,381 | | | 1,331 | | | 1,331 | |
| Consumer packaged goods | | 1,258 | | | 1,259 | | | 1,027 | |
| Other | | 960 | | | 879 | | | 775 | |
| Total | | $ | 13,178 | | | $ | 11,709 | | | $ | 9,778 | |
Contract Balances
The contract asset and contract liability balances from contracts with customers were as follows:
| | | | | | | | | | | | | | |
| | December 31, |
| (In millions) | | 2025 | | 2024 |
| Contract assets and contract costs included in: | | | | |
| Other current assets | | $ | 36 | | | $ | 37 | |
| Other long-term assets | | 235 | | | 196 | |
| Total contract assets | | $ | 271 | | | $ | 233 | |
| Contract liabilities included in: | | | | |
| Other current liabilities | | $ | 279 | | | $ | 272 | |
| Other long-term liabilities | | 101 | | | 128 | |
| Total contract liabilities | | $ | 380 | | | $ | 400 | |
Revenue recognized included the following:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| (In millions) | | 2025 | | 2024 | | 2023 |
| Amounts included in the beginning of year contract liability balance | | $ | 272 | | | $ | 208 | | | $ | 122 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.