Oracle Corporation (ORCL)

Business

From the fiscal 2026 Annual Report on Form 10-K, accession 0001193125-26-277521.

Oracle provides products and services that build, run and support enterprise information technology frameworks, enterprise applications and infrastructure offerings that increasingly incorporate artificial intelligence, including embedded AI-driven automation and analytics and generative AI. Offerings are delivered through cloud-based, on-premise and hybrid deployment models, including Oracle Exadata Cloud@Customer and multicloud options that let customers run Oracle software inside other public clouds.

Three businesses, three operating segments

Oracle reports cloud and software, hardware, and services, each a single operating segment. In fiscal 2026 they contributed 87%, 5% and 8% of total revenues respectively (86%, 5% and 9% in fiscal 2025).

Cloud and software, $58.5 billion of fiscal 2026 revenue. Two revenue streams:

• Cloud revenues from Oracle Cloud Applications (OCA) and Oracle Cloud Infrastructure (OCI), sold under subscription agreements generally running one to five years, recognised ratably over the contract term or, for usage-model contracts, as services are consumed.
• Software revenues, comprising perpetual software license revenues (recognised at a point in time on delivery, which makes quarterly license revenue lumpy) and software support revenues, priced as a percentage of net license fees, billed in advance and recognised ratably. Substantially all license customers buy support, and substantially all renew it.

Hardware, $3.1 billion of fiscal 2026 revenue. Oracle Engineered Systems (notably the Exadata Database Machine), servers, storage, industry-specific hardware, operating systems and virtualization software, plus hardware support. Each hardware product and its essential embedded software are treated as one combined performance obligation, recognised on delivery. Most manufacturing is outsourced to third-party partners, and most hardware is sold through indirect channels.

Services, $5.7 billion of fiscal 2026 revenue. Consulting services and customer success services, recognised over time as performed. This business carries materially lower margins than the other two.

The cloud transition

The shift from license-and-support to cloud is the central fact of the business. Cloud revenues were 51% of total revenues in fiscal 2026, against 43% in fiscal 2025 and 37% in fiscal 2024. Within cloud revenue the mix inverted over the same period: cloud applications fell from 65% of cloud revenue in fiscal 2024 to 58% in fiscal 2025 to 47% in fiscal 2026, while cloud infrastructure rose from 35% to 42% to 53%. Over the past three fiscal years, customers with annual software support contracts that migrated to Oracle Cloud added $5.4 billion of annualised cloud revenue.

Product portfolio

• Oracle Cloud Applications (OCA): Fusion Cloud ERP (including EPM and Supply Chain and Manufacturing), Fusion Cloud HCM, Fusion Cloud CX, the NetSuite Applications Suite for small and mid-sized organisations, and Oracle Health applications, plus cloud industry solutions in communications, construction and engineering, education, financial services, government, healthcare, hospitality, utilities and retail.
• Oracle Cloud Infrastructure (OCI): compute (virtual machines, GPU-based offerings and bare metal, for both traditional compute-intensive workloads and AI model training and inference), block/file/object/archive storage, networking, and cloud-native services, plus AI Infrastructure, generative AI and agentic AI services. Deployment variants include Oracle's Multicloud Database offerings (Oracle AI Database running inside other hyperscalers), Exadata Cloud@Customer, OCI Dedicated Region, OCI Sovereign Cloud, Oracle Alloy for partners, and Compute Cloud@Customer / Roving Edge Infrastructure at the network edge.
• Oracle Autonomous AI Database, self-driving and self-tuning, available serverless or dedicated on OCI, hybrid via Exadata Cloud@Customer and OCI Dedicated Region, and in multicloud deployments.
• Infrastructure software licenses: Oracle AI Database, MySQL (with MySQL HeatWave), Oracle Middleware, and Java.
• Recent AI database functionality includes AI Vector Search, Select AI and Private AI Agent Factory, letting customers apply generative AI to their own data without duplicating it, with a choice of large language model.

Research, people, seasonality, competition

Oracle invested $10.3 billion, $9.9 billion and $8.9 billion in research and development in fiscal 2026, 2025 and 2024. It employed approximately 141,000 full-time employees as of May 31, 2026, roughly 49,000 in the U.S. and 92,000 internationally, with average tenure of about eight years.

Revenues and operating margins are seasonally highest in the fourth fiscal quarter and lowest in the first. Named competitors include Adobe, Alphabet, Amazon.com, Cisco, Intel, IBM, Microsoft, Salesforce and SAP, plus Hewlett-Packard Enterprise and Workday; in healthcare IT, following the Cerner acquisition, Allscripts, Arcadia Solutions, athenahealth, Epic Systems and InterSystems.

Leadership changed materially in fiscal 2026. Clay Magouyrk and Mike Sicilia have served as Chief Executive Officers since September 2025; Larry Ellison remains Executive Chair and Chief Technology Officer; Safra Catz became Executive Vice Chair of the Board in September 2025; and Hilary Maxson joined as Chief Financial Officer in April 2026 from Schneider Electric. Oracle's chief operating decision makers are its Chief Executive Officers and its Chief Technology Officer.

Risk factors

From the fiscal 2026 Annual Report on Form 10-K, accession 0001193125-26-277521.

Data center capacity, power and the capital cycle

This is the risk that has grown most with Oracle's strategy. Growing OCI requires large capital and operating expenditures, long-term leases with third-party data center providers, and significant commitments to suppliers of chips and other infrastructure. Both directions of the demand estimate are dangerous: underestimating leaves Oracle short of capacity and losing business to competitors; overestimating locks it into multi-year commitments for excess space, capital expenditures and associated financings without corresponding revenue. Lease terms, renewal options and pricing adjustments typically do not align with the duration and pricing of customer contracts, and capacity that is not renewed may not be re-lettable on acceptable terms.

Expansion depends on permitted build sites, reliable power, networking hardware and server availability including GPUs and memory. Oracle states it has faced, and may continue to face, challenges securing reliable and cost-effective power, which is globally constrained by AI compute demand; power prices are volatile, and Oracle may enter long-term power purchase arrangements extending beyond customer contract terms, exposing it to counterparty, pricing and collateral risk. Government-imposed limits or moratoria on data center construction, land use and zoning, environmental permitting, energy and water rules, and grid reliability requirements could delay or prevent projects. These investments "may require significant cash outlays before, or in excess of, the revenues or cash flows generated by the related capacity."

Customer concentration and credit

Oracle discloses that in certain OCI offerings it is "more concentrated among a number of large customers," which increases exposure to non-payment and non-performance. Some customers may be highly leveraged and subject to their own operating and regulatory risks. Credit analysis, monitoring and prepayments under some committed contracts cannot fully eliminate that risk.

Supply chain and components

Some technologies and components are single-sourced. Industry supply capacity for AI accelerators including GPUs, and for memory devices, is competitive, and Oracle says it "at times [has] to accept less favorable terms with suppliers to minimize supply constraints", which secures capacity but increases excess and obsolescence risk and could hurt profitability and cash flows. Actual useful lives, performance and failure rates of components may differ from expectations, producing unplanned repair or replacement costs. Delayed components can leave Oracle carrying operating costs on data center capacity that is not yet revenue-generating.

Indebtedness

As of May 31, 2026, Oracle had $129.5 billion of outstanding indebtedness maturing between calendar 2026 and calendar 2066, and expects to incur more to finance capital expenditures, investments, acquisitions, dividends and refinancings. Risks named: higher fixed obligations and interest expense; covenants; variable-rate exposure; refinancing on worse terms; disruptions in credit markets, reduced liquidity or lender concentration limits raising borrowing costs. A ratings downgrade could reduce access to or raise the cost of commercial paper, affect the terms or availability of long-term commitments including data center leases, limit eligibility to contract with certain customers, and increase collateral or letter-of-credit requirements. Rising interest expense could also limit Oracle's ability to use foreign tax credits.

Equity structure and dilution

Conversion of the 6.50% Series D Mandatory Convertible Preferred Stock and the related depositary shares, payment of preferred dividends in common stock, or issuance of shares under the at-the-market program will dilute common holders and may depress the share price. Oracle also warns the ATM Program may not be fully implemented and that disruptions in equity markets could limit access to equity financing. Common stock ranks junior to the Mandatory Convertible Preferred for dividends and on liquidation, where the preferred carries a $100,000 per share liquidation preference plus accumulated unpaid dividends.

Cloud strategy and revenue recognition

Because cloud revenue is recognised ratably or on consumption while license and hardware revenue is recognised on delivery, "any deterioration in sales activity associated with our cloud offerings may not be immediately observable" in the income statement. Oracle may also be unable to backfill reduced demand for software, hardware and support as customers transition.

AI products and AI regulation

Oracle is building AI into its products and has made significant investments in AI infrastructure and headcount, relying in part on partners and suppliers. Failure of AI products to perform, higher-than-expected build costs, or stronger competitor products could mean the investment is not recouped. Separately, the EU AI Act is phasing in through 2030, the U.S. federal framework remains in development with state-level legislation enacted, and Oracle identifies potential government restrictions on AI infrastructure, compute resources, model weights, cross-border AI services, customer access, and localization or nationalization initiatives.

Workforce restructuring

Oracle has an existing restructuring plan under which it continues to adjust its workforce, and states that the adoption and deployment of AI technologies across its operations have resulted, and may continue to result, in reductions to its workforce. Restructurings risk higher costs, lower productivity, skill shortages, loss of institutional knowledge, and failure to realise expected savings within the expected timeframe.

Other substantive risks

• Quarterly volatility: a substantial portion of license and hardware contracts close late in a quarter against a largely fixed short-term cost structure; results may also swing on the timing and amount of capital expenditures, which vary with supplier pricing, tariffs and construction timelines. Marketable and non-marketable investment fair-value changes have contributed to net income volatility "not reflective of our core businesses."
• Cybersecurity: Oracle believes it is a target because it stores health sciences (including patient health information), financial services, retail, hospitality, telecommunications and government data; attacks "have led" to compromise of personal or confidential information.
• Privacy regulation: GDPR penalties reach €20 million or 4% of worldwide revenue, whichever is greater.
• Multicloud as a two-way door: OCI multicloud services work with Microsoft Azure, Amazon Web Services and Google Cloud, which could equally lead customers to migrate away from Oracle.
• Government customers: budget cycles, appropriations, shutdowns, FedRAMP and Department of War CMMC cybersecurity requirements, and termination for convenience.
• Healthcare regulation: FDA-registered medical devices, CEHRT certification, the federal Anti-Kickback Statute and False Claims Act.
• Tax: audits in the U.S. and internationally, OECD-driven changes, and digital-services taxes.
• Currency: principal exposures include the Australian Dollar, Brazilian Real, British Pound, Canadian Dollar, Euro, Indian Rupee, Japanese Yen and Saudi Riyal.
• Minority-held listed subsidiaries: Oracle Financial Services Software Limited (India) and Oracle Corporation Japan.
• Securities litigation: Oracle is a named defendant, with certain officers and a director, in a putative stockholder class action alleging securities-law violations in connection with a drop in its stock price.

Management's discussion, fiscal 2026

From the fiscal 2026 Annual Report on Form 10-K, accession 0001193125-26-277521.

Revenue

Total revenues were $67.4 billion in fiscal 2026, up 17% as reported and 16% in constant currency from $57.4 billion in fiscal 2025. The $10.0 billion increase comprised a $9.3 billion increase in cloud and software, a $510 million increase in services and a $148 million increase in hardware. In constant currency, cloud infrastructure contributed 84% of the growth in cloud revenues and cloud applications 16%. By region, the Americas, EMEA and Asia Pacific contributed 88%, 5% and 7% of constant-currency total revenue growth.

Hardware growth came from Exadata and other strategic hardware; services growth came from consulting.

Costs and margin

Total GAAP operating expenses rose $7.0 billion. The dominant driver was a $6.0 billion increase in cloud and software expenses, primarily higher infrastructure expenses, alongside a $1.5 billion increase in restructuring and other expenses and a $412 million increase in research and development (employee-related and computer equipment). Offsets were a $636 million decrease in amortization of intangible assets as assets became fully amortized and a $320 million decrease in sales and marketing.

Operating income was $20.6 billion, up 17% as reported and 13% in constant currency. Total margin as a percentage of revenues was flat year over year. Within the cloud and software business, constant-currency margin percentage decreased, because a $5.7 billion constant-currency increase in infrastructure expenses outpaced revenue growth. Management expects cloud and software expenses to keep growing "during fiscal 2027 and in the next few fiscal years" as data center capacity expands.

Below the operating line

Interest expense rose on higher average borrowings from $43.0 billion of senior notes issued in fiscal 2026 (after $14.0 billion in fiscal 2025). Non-operating income, net increased $3.5 billion, driven principally by a $2.7 billion gain on the sale of Oracle's investment in Ampere Computing Holdings LLC, a $380 million gain from other investments, a $205 million increase in deferred-compensation portfolio gains and a $202 million increase in interest income.

The provision for income taxes rose, chiefly on a $933 million unfavorable impact from the U.S. One, Big, Beautiful Bill Act signed July 4, 2025, which required remeasurement of a deferred tax liability recorded in fiscal 2021 as part of a partial legal-entity realignment, plus $589 million of unfavorable jurisdictional earnings mix, substantially offset by a $1.5 billion increase in stock-based compensation tax benefits. The GAAP effective tax rate was 12.6% in fiscal 2026 (12.1% in fiscal 2025); excluding the items management adjusts for, the rates were 19.9% and 19.7%. Net income was $17.1 billion against $12.4 billion.

Capital and liquidity

• Capital expenditures rose from $21.2 billion in fiscal 2025 to $55.7 billion in fiscal 2026, on data center expansion. Management expects the upward trend to continue in fiscal 2027 and following years.
• Operating cash flow was $32.0 billion, up $11.2 billion, including $4.6 billion of cash inflows from customer prepayments with a significant financing component. On Oracle's own measure, operating cash flow less capital expenditures, free cash flow was negative $23.7 billion in fiscal 2026, against negative $394 million in fiscal 2025.
• Investing outflows rose $30.1 billion, driven by a $34.4 billion increase in capital expenditures, partly offset by $4.3 billion of proceeds from the Ampere sale.
• Financing inflows rose $39.2 billion, on $42.7 billion of net senior note proceeds, $5.0 billion of net proceeds from the Mandatory Convertible Preferred Stock, and $1.3 billion net from employee stock programs.
• Dividends paid were $5.8 billion ($2.00 per common share totalling $5.7 billion, plus $1,263.89 per preferred share totalling $63 million). Buybacks were nearly dormant: 0.4 million shares for $93 million, against 3.9 million shares for $600 million in fiscal 2025, leaving $6.3 billion of authorization.
• In March 2026 Oracle terminated its $6.0 billion five-year revolver and entered a new $10.0 billion five-year revolving credit agreement (undrawn at year end), and increased its commercial paper program to $10.0 billion ($1.5 billion outstanding at May 31, 2026).
• Gross unrecognized income tax benefits, including interest and penalties, were $13.2 billion.

The fiscal 2026 financings

Oracle issued $43.0 billion par value of senior notes during fiscal 2026 across fourteen tranches maturing between February 2029 and February 2066, with coupons from 4.45% to 6.85% (the largest being $5.0 billion of 5.70% notes due February 2036 and $5.0 billion of 6.70% notes due February 2056, plus $500 million of floating rate notes due February 2029). On February 5, 2026 it issued 100,000,000 depositary shares representing 50,000 shares of 6.50% Series D Mandatory Convertible Preferred Stock for $5.0 billion net. On February 2, 2026 it entered an equity distribution agreement for an at-the-market program of up to $20 billion, under which no shares had been sold as of May 31, 2026. All were issued for general corporate purposes, which may include capital expenditures, debt repayment, investments or acquisitions, and dividends or buybacks.

Backlog

Remaining performance obligations were $638 billion as of May 31, 2026, against $138 billion a year earlier, the increase attributable to certain significant cloud contracts entered into during the period.

First quarter of fiscal 2027 (quarter ended August 31, 2026)

From the Quarterly Report on Form 10-Q, accession 0001193125-26-389274, and the results release furnished on Form 8-K, accession 0001193125-26-387905.

Results

Total revenues were $19.3 billion, up $4.4 billion or 30% year over year. Cloud revenue was $11.6 billion, up 62%; within it, cloud infrastructure grew 121% to $7.4 billion and cloud applications grew 10% to $4.2 billion. Cloud revenues reached 60% of total revenues, against 48% a year earlier. Software revenue declined to $5.6 billion as customers migrate to cloud; hardware was $774 million (up $104 million) and services $1.4 billion (up $65 million, being an $88 million rise in consulting partly offset by a $23 million decline in customer success). In constant currency, cloud infrastructure supplied 91% of cloud revenue growth and cloud applications 9%; the Americas supplied 90% of total constant-currency revenue growth.

Total operating expenses rose $2.0 billion to $12.6 billion. A $2.8 billion increase in cloud and software expenses, primarily infrastructure, was partly offset by a $321 million decrease in restructuring and other, a $252 million decrease in sales and marketing, a $218 million decrease in intangible amortization, a $90 million decrease in research and development and a $47 million decrease in services expense. Operating income was $6.7 billion. Interest expense rose to $1.4 billion on the fiscal 2026 note issuances. Net income was $4.8 billion, and net income available to common shareholders $4.7 billion after $81 million of preferred dividends. The GAAP effective tax rate was 15.1%, against 14.6%.

The balance sheet turn

The quarter's story is capital intensity. Capital expenditures were $28.5 billion, against $8.5 billion in the first quarter of fiscal 2026. Property, plant and equipment, net rose to $127.8 billion from $100.0 billion in three months, with construction in progress alone at $48.5 billion. Quarterly depreciation more than doubled to $3.2 billion from $1.4 billion. Total assets reached $303.3 billion.

That capital outran the cash the business produced: free cash flow was negative $5.4 billion in the quarter, $23.1 billion of operating cash flow less $28.5 billion of capital expenditure, against negative $362 million a year earlier. Operating cash flow itself was up $15.0 billion, and includes $11.4 billion of customer prepayments carrying a significant financing component, there were none in the comparable quarter. The shortfall was met from equity rather than borrowing: Oracle fully utilised the ATM Program, issuing 141 million common shares for $19.9 billion net, while debt was net repaid, $3.1 billion of scheduled debt repayments, $1.1 billion of commercial paper and $830 million of net short-term financing related to capital expenditures. Senior notes and other long-term borrowings outstanding were $125.0 billion at August 31, 2026, against $128.1 billion at May 31, 2026; their estimated fair value was $105.7 billion, against $114.4 billion. That pair is stated on the senior notes and other long-term borrowings basis Oracle uses for its fair value disclosure, which includes the current portion of those borrowings but excludes commercial paper; on the balance sheet's total borrowings basis, notes payable and other borrowings, current and non-current, the same May 31, 2026 date carries the $129.5 billion of indebtedness cited under Indebtedness above. Management expects fiscal 2027 capital expenditures to exceed fiscal 2026's.

Commitments not yet on the balance sheet

Two figures dominate the forward obligation picture. As of August 31, 2026, Oracle had $288 billion of additional lease commitments, substantially all data center arrangements, expected to commence between the second quarter of fiscal 2027 and fiscal 2029 for terms of fifteen to nineteen years, none of it reflected on the balance sheet or in the lease maturity table. Separately, unconditional purchase and certain other obligations of one year or greater totalled $34.2 billion, primarily long-term supply arrangements for cloud infrastructure components and data center power. Recognised lease liabilities were $34.6 billion operating and $9.2 billion finance.

Backlog and guidance

Remaining performance obligations were $664 billion as of August 31, 2026, against $455 billion a year earlier, a $209 billion increase. Oracle expects to recognise approximately 13% as revenue over the next twelve months, 37% over months 13 to 36, 34% over months 37 to 60, and the remainder thereafter. Management stated it booked more than $30 billion of additional AI cloud contracts in the quarter, delivered more than 300,000 GPUs since the end of fiscal 2026, added 850MW of data center capacity, and that the structuring of the new contracts implies no incremental impact on its capital-raising plans.

Management's forward guidance, given with the September 10, 2026 results, points to continued growth of a similar order in the second quarter of fiscal 2027, led by cloud, with full-year fiscal 2027 total revenue expected to be at least $90 billion. One wrinkle in the comparison: the year-earlier second quarter included the one-time Ampere investment gain, so on an all-in basis Oracle expects second-quarter non-GAAP earnings per share to decline year over year even as the underlying business grows.

Restructuring

Restructuring and other expenses fell to $94 million from $415 million, comprising $165 million of restructuring expense (against $402 million) net of $71 million of other credits, largely insurance receipts on a legal matter. The Fiscal 2026 Oracle Restructuring Plan, approved during fiscal 2026 to implement strategic measures and improve operational efficiency "including through the adoption and integration of artificial intelligence technologies across certain functions", carried total estimated costs of up to $2.1 billion as of August 31, 2026, of which $1,971 million had been accrued to date and $410 million remained accrued on the balance sheet.

Other items in the quarter

• TikTok: the substantial majority of Oracle's $2.4 billion of non-marketable equity and debt investments were with TikTok USDS Joint Venture LLC, an equity method investee in which Oracle holds a 15% ownership interest.
• No share repurchases occurred during the quarter; $6.3 billion remained authorized.
• Oracle adopted ASU 2025-06 on internal-use software prospectively effective June 1, 2026, with no material impact.
• Rule 10b5-1 plan: Lawrence J. Ellison, Executive Chair and Chief Technology Officer, adopted a new trading plan on June 22, 2026, scheduled to terminate October 24, 2026, permitting the sale of up to 50 million shares of Oracle common stock.
• Litigation: In the Netherlands privacy class action brought by The Privacy Collective, the Dutch Supreme Court held on July 17, 2026 that the Court of Appeal had applied the wrong standard for evaluating a class action and remanded the case; Oracle served a Writ of Summons on July 27, 2026. In the securities class action over statements about Oracle's cloud infrastructure business, filed February 3, 2026 in the U.S. District Court for the District of Delaware and amended July 14, 2026 against Oracle, its Chief Technology Officer, one Chief Executive Officer, two other executives and a board member, defendants were required to respond by September 16, 2026, with any motion to dismiss fully briefed by December 18, 2026. Oracle believes it has meritorious defenses in both matters.

Subsequent events

Post-period events disclosed in the Quarterly Report on Form 10-Q for the quarter ended August 31, 2026, accession 0001193125-26-389274.

• Restructuring plan supplemented by approximately $700 million. Subsequent to August 31, 2026, management supplemented the Fiscal 2026 Oracle Restructuring Plan by approximately $700 million to reflect additional actions it expects to take, above the up-to-$2.1 billion total estimated as of the balance sheet date. These costs will be recorded to restructuring and other expense through the end of the plan.
• Dividends declared in September 2026. The Board declared a quarterly cash dividend of $1,625 per share of outstanding Mandatory Convertible Preferred Stock, payable October 15, 2026 to holders of record October 1, 2026, and $0.50 per share of outstanding common stock, payable October 23, 2026 to holders of record October 9, 2026.

The quarterly report discloses no post-period acquisitions, divestitures, new debt or equity financings, or litigation outcomes.

Filings that contain financial statements

• Form 10-K, accession 0001193125-26-277521, filed June 22, 2026, annual report for the fiscal year ended May 31, 2026 (fiscal 2026). Contains full audited consolidated statements of operations, balance sheets, cash flows and stockholders' equity, plus segment, debt and commitment footnotes.
• Form 10-Q, accession 0001193125-26-389274, filed September 11, 2026, quarterly report for the quarter ended August 31, 2026, Oracle's first quarter of fiscal 2027. Contains unaudited condensed consolidated statements of operations, balance sheets and cash flows for that quarter, with the prior-year quarter (ended August 31, 2025) as comparative.
• Form 8-K, accession 0001193125-26-387905, filed September 10, 2026, Exhibit 99.1, press release with condensed consolidated statements of operations for the quarter ended August 31, 2026 (Q1 FY2027) and the year-earlier quarter.
• Form 8-K, accession 0001193125-26-265848, filed June 10, 2026, Exhibit 99.1, press release with condensed consolidated statements of operations for the quarter ended May 31, 2026 (Q4 FY2026) and the full fiscal year ended May 31, 2026, each with year-earlier comparatives.
• Form 8-K, accession 0001193125-26-100148, filed March 10, 2026, Exhibit 99.1, press release with condensed consolidated statements of operations for the quarter ended February 28, 2026 (Q3 FY2026).
• Form 8-K, accession 0001193125-25-314207, filed December 10, 2025, Exhibit 99.1, press release with condensed consolidated statements of operations for the quarter ended November 30, 2025 (Q2 FY2026).
• Form 8-K, accession 0001193125-25-199175, filed September 9, 2025, Exhibit 99.1, press release with condensed consolidated statements of operations for the quarter ended August 31, 2025 (Q1 FY2026).

Earnings and guidance

September 10, 2026, Q1 FY2027 results (accession 0001193125-26-387905). Total revenue rose 30% to $19.3 billion; total cloud revenue rose 62% to $11.6 billion, driven by 121% growth in cloud infrastructure (IaaS) to $7.4 billion. GAAP EPS was $1.56 (up 55%) and non-GAAP EPS was $1.92 (up 30%). Remaining Performance Obligations (RPO) rose $209 billion year over year to $664 billion. Operating cash flow was a record $23 billion; free cash flow was negative $5 billion as the company continued heavy capital investment. Oracle raised full-year fiscal 2027 guidance to at least $90 billion in total revenue and non-GAAP EPS of $8.10, and gave Q2 FY2027 guidance of 30%-34% total revenue growth and non-GAAP EPS of $1.85-$1.93. The board declared a quarterly common dividend of $0.50 per share (record date October 9, 2026, payable October 23, 2026); the mandatory convertible preferred stock dividend of $1,625 per share for the quarter is disclosed in Note 7 of the Form 10-Q for the quarter ended August 31, 2026 (accession 0001193125-26-389274), not in this earnings release.

June 10, 2026, Q4 and full-year FY2026 results (accession 0001193125-26-265848). Q4 total revenue was $19.2 billion (up 21%); full fiscal 2026 total revenue was a record $67.4 billion (up 17%), with cloud revenue up 39% to $34.0 billion. FY2026 GAAP EPS was $5.83 (up 34%) and non-GAAP EPS was $7.63 (up 27%). RPO ended the year at $638 billion. Fiscal 2026 operating cash flow was a record $32.0 billion, while free cash flow was negative $23.7 billion. Oracle said it raised $43 billion in debt and $5 billion in equity financing during fiscal 2026 and expects to raise roughly $40 billion more in fiscal 2027, and does not expect to issue additional debt in calendar 2026. Fiscal 2027 guidance was set at $90 billion total revenue and non-GAAP EPS of $8.05. A $0.50 per share quarterly dividend was declared.

March 10, 2026, Q3 FY2026 results (accession 0001193125-26-100148). Total revenue rose 22% to $17.2 billion; cloud revenue rose 44% to $8.9 billion. GAAP EPS was $1.27 (up 24%) and non-GAAP EPS was $1.79 (up 21%). RPO reached $553 billion, up 325% year over year. Oracle said that within days of announcing a plan to raise up to $50 billion in debt and equity financing, it raised $30 billion through investment-grade bonds and mandatory convertible preferred stock. Fiscal 2026 revenue guidance was reaffirmed at approximately $67 billion; fiscal 2027 total revenue guidance was raised to $90 billion. A $0.50 per share quarterly dividend was declared.

December 10, 2025, Q2 FY2026 results (accession 0001193125-25-314207). Total revenue rose 14% to $16.1 billion; cloud revenue rose 34% to $8.0 billion. GAAP EPS was $2.10 (up 91%) and non-GAAP EPS was $2.26 (up 54%), both boosted by a $2.7 billion pre-tax gain on the sale of Oracle's interest in Ampere Computing, which management said reflected a shift toward chip neutrality rather than continuing to design and manufacture its own chips. RPO reached $523 billion, up 438% year over year. A $0.50 per share quarterly dividend was declared.

September 9, 2025, Q1 FY2026 results (accession 0001193125-25-199175). Total revenue rose 12% to $14.9 billion; cloud revenue rose 28% to $7.2 billion. GAAP EPS was $1.01 (down 2%) and non-GAAP EPS was $1.47 (up 6%). RPO rose 359% year over year to $455 billion, driven by four multi-billion-dollar cloud infrastructure contracts signed in the quarter. A $0.50 per share quarterly dividend was declared.

Leadership and board changes

• September 22, 2025 (accession 0001193125-25-210089, event dated September 18, 2025). Oracle promoted Clayton Magouyrk and Michael Sicilia to co-Chief Executive Officers and added them to the board, effective September 22, 2025. Safra Catz stepped down as CEO and Principal Financial Officer and became Executive Vice Chair of the board, continuing as a director. Douglas Kehring was promoted to Executive Vice President, Principal Financial Officer.
• October 6, 2025 (Form 8-K/A, accession 0001193125-25-231901, amending the September 22, 2025 filing). This amendment adds compensation details approved after the September 22 leadership changes: base salaries raised to $950,000 for Magouyrk, Sicilia and Kehring, target cash bonuses for the CEOs of $5,000,000 each for fiscal 2026, and a $950,000 target bonus for Kehring; it does not change the substance of the original leadership announcement.
• November 18, 2025 (accession 0001193125-25-291441). Oracle's board elected Stephen Rusckowski, former CEO of Quest Diagnostics, as a director. Separately, at Oracle's 2025 Annual Meeting held the same day, stockholders re-elected all director nominees, approved (on an advisory basis) executive compensation, and ratified Ernst & Young LLP as independent auditor for fiscal 2026.
• January 5 and January 7, 2026 (accession 0001193125-26-009002). Directors George H. Conrades (after 18 years on the board) and Naomi O. Seligman (after 20 years) notified the board of their retirements, effective immediately; the company said neither departure involved a dispute with Oracle.
• April 6, 2026 (accession 0001193125-26-142939). Oracle appointed Hilary Maxson, formerly Group Chief Financial Officer of Schneider Electric, as Chief Financial Officer and Principal Financial Officer, effective April 6, 2026. Douglas Kehring stepped down as Principal Financial Officer and transitioned to Executive Vice President, Operations. Maxson's package includes a $950,000 base salary, a $2,500,000 target bonus (prorated), and an intended equity grant of $26 million.
• May 6, 2026 (accession 0001193125-26-219708). Oracle's board elected Dr. Tomislav Mihaljevic, CEO of Cleveland Clinic, as a director, increasing board size to 13.

Capital markets and financing

• June 30, 2025 (accession 0001193125-25-152035). In connection with the start of fiscal 2026, then-CEO Safra Catz said Oracle had signed multiple large cloud services agreements, including one expected to contribute more than $30 billion in annual revenue starting in fiscal 2028, with no change to fiscal 2026 guidance as a result.
• September 26, 2025 (accession 0001193125-25-220445). Oracle completed a public offering of $18 billion aggregate principal amount of senior notes across six tranches (4.450% notes due 2030 through 6.100% notes due 2065), with proceeds designated for general corporate purposes including capital expenditures, debt repayment, potential acquisitions, and dividends or buybacks.
• February 2-5, 2026 (accessions 0001193125-26-037840 and 0001193125-26-039344). Oracle entered a $20.0 billion at-the-market common stock equity distribution program (announced February 2, 2026) and separately issued and sold $25 billion aggregate principal amount of senior notes across eight tranches (Floating Rate Notes due 2029 through 6.850% Notes due 2066), consummated February 4, 2026. It also completed a public offering of 100,000,000 depositary shares representing interests in newly issued 6.50% Series D Mandatory Convertible Preferred Stock (liquidation preference $100,000 per underlying share), which closed February 5, 2026; the preferred stock carries a 6.50% annual dividend rate and converts automatically into common stock by January 15, 2029 at a rate of between 499.8126 and 624.7657 shares per preferred share (0.2499 to 0.3124 shares of common stock per depositary share), subject to anti-dilution adjustments.
• Oracle's September 2025, December 2025, March 2026, June 2026 and September 2026 earnings releases disclosed that fiscal 2026 total debt and equity financing reached roughly $48 billion (approximately $43 billion in debt, $5 billion in equity), that Oracle completed the $20 billion at-the-market common stock program in the first quarter of fiscal 2027, and that Oracle does not expect to issue additional debt in calendar year 2026.

Other matters

• December 10, 2025 earnings release (accession 0001193125-25-314207). Oracle disclosed the sale of its interest in Ampere Computing, generating a $2.7 billion pre-tax gain recognized in the second quarter of fiscal 2026, and said the sale reflects a shift to a "chip neutrality" strategy rather than continuing to design and manufacture its own chips for its cloud datacenters. Oracle did not file a separate current report under Item 2.01 for the disposition; it is disclosed within the quarterly earnings release.
• Regular quarterly common stock dividends of $0.50 per share were declared with each quarterly earnings release throughout the period (September 2025, December 2025, March 2026, June 2026 and September 2026). Mandatory convertible preferred stock dividends of $1,625 per share, following the February 2026 preferred stock issuance, were declared and disclosed separately in the periodic reports rather than the earnings releases: in the Form 10-K for fiscal 2026 (accession 0001193125-26-277521) and in the Form 10-Q for the quarter ended August 31, 2026 (accession 0001193125-26-389274).

Aside from the Ampere sale noted above, the 8-K, 8-K/A, 10-K and 10-Q filings reviewed for this period report no material acquisitions, divestitures, restatements, impairments, or going-concern or covenant issues.

About this file

ORCL annual income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

• Balance sheet note, FY2024. The FY2026 10-K presents balance sheets as of May 31, 2026 and 2025 only, so no balance sheet is reported here for fiscal 2024.

ORCL quarterly income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

• Balance sheet note, Q1 FY2026. The Q1 FY2027 10-Q presents balance sheets as of August 31, 2026 and May 31, 2026 only, so no balance sheet is reported here as of August 31, 2025.

ORCL year-to-date income statement and cash flow

Taken from the SEC filings and normalized to actual dollars.

• Note. Fiscal 2027 began on June 1, 2026, so the year-to-date period ended August 31, 2026 is the same three months as the first quarter of fiscal 2027.

ORCL trailing twelve month income statement and cash flow

Derived by AI from the figures the filings report. No filing prints these, so none of them is linked.

• Derivation. Not a period any filing presents. Each line is fiscal 2026 as reported in the FY2026 10-K (accession 0001193125-26-277521), plus the three months ended August 31, 2026, less the three months ended August 31, 2025, both as reported in the Q1 FY2027 10-Q (accession 0001193125-26-389274). No per-share figure is shown, because earnings per share cannot be added across periods with different share counts.

Adjustments

Notes

• Sources. Every figure here comes from one of two filings: Oracle's Annual Report on Form 10-K for the fiscal year ended May 31, 2026 (accession 0001193125-26-277521, filed June 22, 2026) and its Quarterly Report on Form 10-Q for the quarter ended August 31, 2026 (accession 0001193125-26-389274, filed September 11, 2026).
• Fiscal calendar. Oracle's fiscal year ends on May 31. The year ended May 31, 2026 is fiscal 2026, and the quarter ended August 31, 2026 is the FIRST quarter of fiscal 2027, the Quarterly Report says so in its own words, describing the adoption of a new accounting standard "in the first quarter of fiscal 2027 ... effective June 1, 2026". The SEC's structured XBRL data for that filing tags its cover page with a document fiscal year focus of 2026, which contradicts the company's own text; the labels used here follow the filing.
• Periods on record. The 10-K presents fiscal 2026, 2025 and 2024 on the income statement, the comprehensive income statement, the equity statement and the cash flow statement, but balance sheets only as of May 31, 2026 and May 31, 2025, so fiscal 2024 carries no balance sheet here. The 10-Q presents the three months ended August 31, 2026 and August 31, 2025 on the income statement and the cash flow statement, and balance sheets only as of August 31, 2026 and May 31, 2026, so the quarter ended August 31, 2025 carries no balance sheet here. These are the only periods the two filings put on their face, and they are exactly the periods reported above.
• Three-month quarters only. The 10-Q covers a single three-month period, with no six-month or year-to-date column, so every quarterly figure above is a discrete three months taken from that filing. Because fiscal 2027 began on June 1, 2026, the year-to-date view at August 31, 2026 is the same three months as the first quarter and repeats its figures.
• Gross profit. Oracle does not strike a gross profit line on the face of its income statement. The figures shown as total cost of revenue and gross profit are computed from the statement's own three direct cost lines, cloud and software, hardware and services, each of which the company states is exclusive of amortization of intangible assets, which it presents separately. On that basis the gross margin was 65.8% in fiscal 2026 against 70.5% in fiscal 2025 and 71.4% in fiscal 2024, and 60.0% in the first quarter of fiscal 2027 against 67.3% a year earlier, reflecting the depreciation and power cost of the cloud infrastructure business.
• Free cash flow. Oracle publishes its own free cash flow measure, operating cash flow less capital expenditures. The figures above for fiscal 2026 (-$23.686 billion), fiscal 2025 (-$394 million), the first quarter of fiscal 2027 (-$5.396 billion) and the first quarter of fiscal 2026 (-$362 million) are the amounts the company itself prints. Fiscal 2024 is not in either of those tables, so its free cash flow of $11.807 billion is computed on the same definition from the cash flow statement ($18.673 billion of operating cash flow less $6.866 billion of capital expenditures).
• Capital intensity. Capital expenditures were $6.866 billion in fiscal 2024, $21.215 billion in fiscal 2025 and $55.663 billion in fiscal 2026, and $28.499 billion in the first quarter of fiscal 2027 alone against $8.502 billion a year earlier. Depreciation followed, rising from $3.129 billion in fiscal 2024 to $7.623 billion in fiscal 2026 and to $3.156 billion in the first quarter of fiscal 2027 from $1.351 billion a year earlier. Oracle states it expects fiscal 2027 capital expenditures to exceed fiscal 2026.
• Trailing twelve months. No filing presents a twelve-month period ended August 31, 2026. The block above is derived line by line as fiscal 2026 plus the three months ended August 31, 2026 less the three months ended August 31, 2025. No per-share figure is derived that way, because earnings per share cannot be added across periods with different share counts.
• Preferred stock and the earnings-per-share numerator. Oracle issued 50,000 shares of 6.50% Series D Mandatory Convertible Preferred Stock on February 5, 2026 for net proceeds of $4.954 billion. From that point earnings per share is struck on net income available to common shareholders, net income less preferred dividends of $103 million in fiscal 2026 and $81 million in the first quarter of fiscal 2027. Fiscal 2025 and 2024 and the quarter ended August 31, 2025 had no preferred stock outstanding, so the two figures are equal in those periods.
• Equity and share count. Common shares outstanding rose from 2.880 billion at May 31, 2026 to 3.024 billion at August 31, 2026, almost entirely because Oracle fully utilised a $20 billion at-the-market offering program during the quarter, issuing approximately 141 million shares for net proceeds of $19.9 billion. Total stockholders' equity rose from $43.056 billion to $67.196 billion over the same three months.
• Debt and leases. Total borrowings, notes payable and other borrowings, current plus non-current, were $92.568 billion at May 31, 2025, $129.541 billion at May 31, 2026 and $125.337 billion at August 31, 2026. Separately, operating lease liabilities on the balance sheet were $30.594 billion non-current at August 31, 2026, and the company discloses a further $288 billion of lease commitments at that date, $260 billion at May 31, 2026, substantially all for data centres, which have not yet commenced and are therefore not on the balance sheet. Those commitments are reported above as a separate metric and are not included in any balance sheet total.
• Remaining performance obligations. Contracted revenue not yet recognised was $138 billion at May 31, 2025, $638 billion at May 31, 2026, $455 billion at August 31, 2025 and $664 billion at August 31, 2026. Oracle states these amounts to the nearest billion dollars in the text of the filings rather than in a table, and attributes the increase to certain significant cloud contracts. Of the $664 billion at August 31, 2026, the company expects to recognise approximately 13% as revenue over the following twelve months.
• Operating cash flow in the quarter. Of the $23.103 billion of operating cash flow in the first quarter of fiscal 2027, $11.363 billion was an increase in deferred revenues from customer prepayments with a significant financing component, a line that was nil in the comparable quarter a year earlier and $4.592 billion for the whole of fiscal 2026.
• Cash flow closing balance. The two filings reconcile to different closing captions, and both are reported here under the name each uses. The 10-K's cash flow statement ends at cash and cash equivalents; the 10-Q's ends at cash, cash equivalents and restricted cash, which was $38.934 billion at August 31, 2026 against $36.369 billion of cash and cash equivalents on the balance sheet, the $2.6 billion difference being restricted cash carried within prepaid expenses and other current assets.
• Segment margins. The segment figures above are the measure Oracle reports to its chief operating decision makers: revenue less only the direct controllable costs of that line of business. They exclude research and development, general and administrative expense, stock-based compensation, amortization of intangible assets, restructuring, interest expense and certain allocations, so the three segment margins do not sum to operating income. Oracle renamed the cloud and software segment in fiscal 2026; it was previously called cloud and license.
• Reclassifications. Both filings state that certain prior period amounts were reclassified to conform to the current presentation, and that the reclassifications did not affect total revenue, income from operations, net income, total assets or cash flows. No restatement of any figure reported here was identified.
• No adjustments were applied. Oracle reports in U.S. dollars, is not an American Depositary Receipt issuer, and has had no stock split in the period covered by these filings, so no currency translation, depositary ratio or split adjustment was made to any figure above.

Uncertainties

• Fiscal 2024 free cash flow of $11.807 billion is not a figure Oracle prints. Its own free cash flow table in the fiscal 2026 Annual Report covers fiscal 2026 and 2025 only, so fiscal 2024 was computed on the company's stated definition from the cash flow statement. Every other free cash flow figure above is printed by Oracle.
• Total cost of revenue and gross profit are not lines Oracle reports. They are built from the three direct cost lines on the face of the income statement and are labelled as derived throughout. A reader comparing them with another company's gross margin should note that Oracle excludes amortization of intangible assets from those cost lines and presents it separately, which flatters the margin relative to a filer that includes it.
• The trailing-twelve-month block is arithmetic across two filings, not a period any filing presents or audits. It assumes fiscal 2026 as reported in the 10-K and the year-ago quarter as reported in the 10-Q are on a consistent basis; both filings note immaterial reclassifications that they state did not change any total used in that arithmetic.
• No balance sheet is reported for fiscal 2024 or for August 31, 2025, because neither filing presents one for those dates. Total debt, total assets, equity and remaining performance obligations therefore have no fiscal 2024 comparison here, and the quarter ended August 31, 2025 carries only an income statement, a cash flow statement and its remaining performance obligation figure.
• Common shares outstanding at period end is not reported for the quarter ended August 31, 2025; the 10-Q's equity statement gives amounts for that quarter but not a share count, and its balance sheet does not cover that date.
• Remaining performance obligations and the lease commitments not yet commenced are stated by Oracle in prose, rounded to the nearest billion dollars, rather than in a table of exact amounts. They are recorded here at that rounded precision.
• The SEC's structured XBRL data for the Quarterly Report tags the quarter ended August 31, 2026 with a document fiscal year focus of 2026, while the filing's own text calls the same period the first quarter of fiscal 2027. This record follows the filing's text. Anyone matching these figures against the structured data should expect that discrepancy in the period labels, not in the figures themselves.

Company details

Fiscal period

Source filings