Learn · Explainer
Remaining performance obligations (RPO)
Contracted revenue that hasn't been recognized yet: what it includes, how it relates to deferred revenue and backlog, and the figure at each company.
The short answer
Remaining performance obligations, or RPO, are the revenue a company has under contract but hasn't recognized yet: deferred revenue already billed plus amounts it will bill later. Companies report the total in the revenue note of the 10-K, usually with how much they expect to recognize in the next twelve months. For the 35 companies here that report a total, the median RPO is 72.2% of a year's revenue. Oracle's is the largest relative to revenue, at $638.0B, or 947.2% of its revenue.
What's in it
RPO counts the transaction price of signed contracts that hasn't been earned yet. It has two parts:
- Deferred revenue, which customers have already paid or been billed for.
- Unbilled amounts the contract commits the customer to, which will be invoiced later. A five-year cloud contract billed yearly adds all five years to RPO when it's signed, but only the first year's bill to deferred revenue.
Contracts the customer can cancel without a substantial penalty, and purely usage-based fees, generally aren't included, so RPO understates the total business a company expects. Companies also may leave out contracts of a year or less.
RPO and backlog
Many manufacturers and defense contractors also talk about backlog, a figure they define themselves. RPO is the version the accounting standards require, defined the same way for every company, so it's the better one for comparisons. Even then, companies sign contracts of very different lengths: a software company with three-year deals will show a much bigger RPO, relative to revenue, than one that sells month to month.
Reading the number
- The next-twelve-months share. Most companies say what percentage of RPO they expect to recognize within a year. That part says the most about next year's revenue.
- Growth against revenue growth. RPO growing faster than revenue means contracts are being signed faster than they're being delivered.
- Very large contracts. One multi-year deal can move the total a lot, so a jump is worth checking against the company's own explanation in MD&A.
15 of the 35 companies have more RPO than a full year of revenue.
Every company
Revenue for the latest fiscal year and remaining performance obligations at that year end, from each 10-K, sorted by the last column. Only companies that report a total figure are listed; banks are left out.
Common questions
What are remaining performance obligations?
Revenue a company has under signed contracts but hasn't recognized yet, including amounts already billed and amounts to be billed later.
Is RPO the same as backlog?
Close, but backlog is a company's own measure. RPO is defined by the accounting standards and reported in the revenue note of the 10-K.
How is RPO different from deferred revenue?
Deferred revenue only counts amounts already paid or billed. RPO adds contracted amounts that will be billed in the future.
Where is RPO in a 10-K?
In the revenue recognition note to the financial statements, usually with the share expected to be recognized in the next twelve months.
Does RPO include every future sale?
No. Cancellable contracts, usage-based fees and, at some companies, contracts of a year or less are left out.
Disclosures
- Editor holdings
- The editor holds no position in any company named on this page. As of Nov 11, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Nov 9, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
More in Learn and Tools · Methodology & Disclosures explains where every number comes from.