Sunday, December 7, 2025

Revenue Performance Obligations (RPO) represent the value of contracted revenue that a company has committed to deliver in future periods under existing customer agreements. RPO includes both short-term and long-term contractual commitments and reflects the remaining value of signed arrangements that have not yet been recognized as revenue. It provides a measure of future revenue that is already contractually secured.

Across the S&P 500 companies included in this review, 151 firms reported RPO in both Q3 2025 and Q3 2024, and the median year-over-year change among those firms was an increase of 11.6%.

One challenge with RPO disclosures is that companies place this information in widely varied locations within their filings — making it difficult for investors or analysts to retrieve consistently without a structured database. For example:

 - Boeing includes RPO inside a paragraph titled “Backlog” within its segment and revenue disclosure.

 - Microsoft reports it in Note 11 – Unearned Revenue.

 - Adobe presents it within the Revenue footnote.

 - RTX labels it directly as an RPO disclosure.

 - Oracle includes it in the Accounting Policies section.

Calcbench standardizes the capture of this information so users can retrieve it regardless of where it appears in the filing.

Top 20 RPO Increases

Name Ticker RPO 2025 RPO 2024 YoY $ Change YoY % Change
Oracle Corp ORCL 455.3B 99.1B 356.2B 359.4%
Microsoft Corp MSFT 398.0B 266.0B 132.0B 49.6%
Boeing Co BA 635.7B 510.5B 125.2B 24.5%
Alphabet Inc. GOOG 157.7B 86.8B 70.9B 81.7%
Amazon Com Inc AMZN 200.0B 164.0B 36.0B 22.0%
RTX Corp RTX 251.0B 221.0B 30.0B 13.6%
GE Vernova Inc. GEV 135.3B 117.7B 17.5B 14.9%
General Dynamics Corp GD 109.9B 92.6B 17.3B 18.7%
Lockheed Martin Corp LMT 179.1B 165.7B 13.4B 8.1%
General Electric Co GE 176.3B 166.1B 10.2B 6.1%
TKO Group Holdings, Inc. TKO 16.6B 7.2B 9.4B 130.4%
Caterpillar Inc CAT 22.5B 14.1B 8.4B 59.6%
Baxter International Inc BAX 9.9B 2.8B 7.1B 259.6%
International Business Machines Corp IBM 64.0B 57.0B 7.0B 12.3%
Northrop Grumman Corp /DE/ NOC 91.4B 84.8B 6.6B 7.8%
Huntington Ingalls Industries, Inc. HII 55.7B 49.4B 6.3B 12.8%
Ford Motor Co F 6.0B 500.0M 5.5B 1100.0%
Quanta Services, Inc. PWR 21.0B 15.6B 5.4B 34.3%
ServiceNow, Inc. NOW 24.3B 19.5B 4.8B 24.6%
Honeywell International Inc HON 39.1B 34.3B 4.8B 13.8%

Top 20 RPO Decreases

Name Ticker RPO 2025 RPO 2024 YoY $ Change YoY % Change
On Semiconductor Corp ON 8.1B 13.7B -5.6B -40.9%
First Solar, Inc. FSLR 16.4B 21.7B -5.3B -24.4%
Verizon Communications Inc VZ 53.8B 57.9B -4.1B -7.1%
Global Payments Inc GPN 737.4M 3.8B -3.1B -80.7%
Pfizer Inc PFE 4.0B 7.0B -3.0B -42.9%
Crown Castle Inc. CCI 404.0M 2.0B -1.6B -79.8%
Unitedhealth Group Inc UNH 11.6B 13.0B -1.4B -10.8%
Coterra Energy Inc. CTRA 5.7B 6.2B -500.0M -8.1%
Targa Resources Corp. TRGP 2.6B 3.0B -386.4M -12.9%
Sempra SRE 3.3B 3.6B -327.0M -9.0%
Intercontinental Exchange, Inc. ICE 3.4B 3.7B -300.0M -8.1%
Moderna, Inc. MRNA 79.0M 361.0M -282.0M -78.1%
News Corp NWS 1.1B 1.3B -210.0M -15.9%
Motorola Solutions, Inc. MSI 8.9B 9.1B -200.0M -2.2%
Arista Networks, Inc. ANET 465.9M 626.3M -160.4M -25.6%
Charles River Laboratories International, Inc. CRL 649.3M 803.5M -154.2M -19.2%
Align Technology Inc ALGN 1.4B 1.5B -112.3M -7.5%
Live Nation Entertainment, Inc. LYV 1.4B 1.5B -100.0M -6.7%
Medtronic plc MDT 300.0M 400.0M -100.0M -25.0%
American Water Works Company, Inc. AWK 7.9B 8.0B -98.0M -1.2%

 

Here are some of the data in chart form.  





As you can see, the levels of the increases in RPOs far exceeds the dollar levels of the decreases. 

In a few days, we will add to this work by looking at the term structure of the performance obligation of some of these firms.
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