ORACLE CORP, 10-Q filed on 3/11/2026
Quarterly Report
v3.25.4
DOCUMENT AND ENTITY INFORMATION - shares
 9 Months Ended
Feb. 28, 2026
Mar. 05, 2026
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Feb. 28, 2026  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2026  
Entity Registrant Name Oracle Corporation  
Entity Central Index Key 0001341439  
Current Fiscal Year End Date --05-31  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   2,876,046,000
Entity File Number 001-35992  
Entity Tax Identification Number 54-2185193  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Address, Address Line One 2300 Oracle Way  
Entity Address, City or Town Austin  
Entity Address State Or Province TX  
Entity Address, Postal Zip Code 78741  
City Area Code 737  
Local Phone Number 867-1000  
Entity Incorporation, State or Country Code DE  
Document Quarterly Report true  
Document Transition Report false  
Common Stock [Member]    
Document Information [Line Items]    
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol ORCL  
Security Exchange Name NYSE  
Depositary Shares, Series D Convertible Preferred Stock [Member]    
Document Information [Line Items]    
Title of 12(b) Security Depositary Shares, each representing a 1/2,000th interest in a share of 6.50% Series D Mandatory Convertible Preferred Stock, par value $0.01 per  
Trading Symbol ORCL PRD  
Security Exchange Name NYSE  
v3.25.4
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Feb. 28, 2026
May 31, 2025
Current assets:    
Cash and cash equivalents $ 38,455 $ 10,786
Marketable securities 677 417
Trade receivables, net of allowances for credit losses of $549 and $557 as of February 28, 2026 and May 31, 2025, respectively 10,719 8,558
Prepaid expenses and other current assets 5,023 4,818
Total current assets 54,874 24,579
Non-current assets:    
Property, plant and equipment, net 83,617 43,522
Intangible assets, net 3,641 4,587
Goodwill 62,274 62,207
Deferred tax assets 11,360 11,877
Other non-current assets 29,474 21,589
Total non-current assets 190,366 143,782
Total assets 245,240 168,361
Current liabilities:    
Notes payable and other borrowings, current 9,887 7,271
Accounts payable 9,474 5,113
Accrued compensation and related benefits 1,940 2,243
Deferred revenues 9,881 9,387
Other current liabilities 9,555 8,629
Total current liabilities 40,737 32,643
Non-current liabilities:    
Notes payable and other borrowings, non-current 124,718 85,297
Income taxes payable 11,402 10,269
Operating lease liabilities 18,512 11,536
Other non-current liabilities 10,820 7,647
Total non-current liabilities 165,452 114,749
Commitments and contingencies
Oracle Corporation stockholders' equity:    
Preferred stock, $0.01 par value and additional paid in capital-authorized: 1.0 shares; outstanding: 0.05 shares as of February 28, 2026 of 6.50% Series D Mandatory Convertible Preferred Stock (none as of May 31, 2025) 4,954 0
Common stock, $0.01 par value and additional paid in capital-authorized: 11,000 shares; outstanding: 2,875 shares and 2,807 shares as of February 28, 2026 and May 31, 2025, respectively 41,910 37,107
Accumulated deficit (7,092) (15,481)
Accumulated other comprehensive loss (1,277) (1,175)
Total Oracle Corporation stockholders' equity 38,495 20,451
Noncontrolling interests 556 518
Total stockholders' equity 39,051 20,969
Total liabilities and stockholders' equity $ 245,240 $ 168,361
v3.25.4
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - USD ($)
shares in Thousands, $ in Millions
 9 Months Ended
Feb. 28, 2026
May 31, 2025
Allowance for credit losses $ 549 $ 557
Preferred stock par value per share $ 0.01 $ 0.01
Preferred stock shares authorized 1,000 1,000
Preferred stock shares outstanding 50  
Common stock par value per share $ 0.01 $ 0.01
Common stock shares authorized 11,000,000 11,000,000
Common stock, shares issued not disclosed true true
Common stock shares outstanding 2,875,000 2,807,000
6.50% Series D Mandatory Convertible Preferred Stock [Member]    
Preferred stock shares outstanding   0
Preferred Stock, Dividend Rate, Percentage 6.50%  
v3.25.4
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Feb. 28, 2026
Feb. 28, 2025
Feb. 28, 2026
Feb. 28, 2025
Revenues:        
Cloud $ 8,914 $ 6,210 $ 24,076 $ 17,769
Software 6,119 5,926 17,717 17,756
Hardware 714 703 2,160 2,086
Services 1,443 1,291 4,220 3,885
Total revenues 17,190 14,130 48,173 41,496
Operating expenses:        
Cloud and software [1] 4,776 2,882 12,373 8,226
Hardware [1] 183 197 576 530
Services [1] 1,133 1,116 3,401 3,430
Sales and marketing [1] 2,052 2,119 6,263 6,345
Research and development 2,607 2,429 7,658 7,206
General and administrative 389 390 1,174 1,135
Amortization of intangible assets 413 548 1,239 1,763
Acquisition related and other 20 28 55 72
Restructuring 153 63 961 220
Total operating expenses 11,726 9,772 33,700 28,927
Operating income 5,464 4,358 14,473 12,569
Interest expense (1,180) (892) (3,160) (2,600)
Non-operating income (expenses), net 132 (18) 2,872 39
Income before income taxes 4,416 3,448 14,185 10,008
Provision for income taxes 695 512 1,402 992
Net income 3,721 2,936 12,783 9,016
Preferred stock dividends 22 0 22 0
Net income available to common shareholders, Basic 3,699 2,936 12,761 9,016
Net income available to common shareholders, Diluted $ 3,699 $ 2,936 $ 12,761 $ 9,016
Earnings per share attributable to common shareholders:        
Basic $ 1.29 $ 1.05 $ 4.47 $ 3.24
Diluted $ 1.27 $ 1.02 $ 4.38 $ 3.15
Weighted average common shares outstanding:        
Basic 2,874 2,799 2,855 2,783
Diluted 2,912 2,874 2,914 2,865
[1] Exclusive of amortization of intangible assets, which is shown separately.
v3.25.4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Feb. 28, 2026
Feb. 28, 2025
Feb. 28, 2026
Feb. 28, 2025
Statement of Comprehensive Income [Abstract]        
Net Income (Loss) $ 3,721 $ 2,936 $ 12,783 $ 9,016
Other comprehensive loss, net of tax:        
Net foreign currency translation gains (losses) 2 (54) (60) (51)
Net unrealized losses on cash flow hedges (6) (19) (39) (107)
Other, net (2) (1) (3) (3)
Total other comprehensive loss, net (6) (74) (102) (161)
Comprehensive income $ 3,715 $ 2,862 $ 12,681 $ 8,855
v3.25.4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($)
$ in Millions
Total
Preferred Stock and Additional Paid in Capital
Common Stock and Additional Paid in Capital
Accumulated Deficit
Other Stockholders' Equity, Net
Balance, beginning of period at May. 31, 2024   $ 0 $ 32,764 $ (22,628) $ (897)
Mandatory convertible preferred stock issued   0      
Other comprehensive loss, net         (161)
Common stock issued     520    
Stock-based compensation     3,374    
Repurchases of common stock $ (450)   (34) (416)  
Shares repurchased for tax withholdings upon vesting of restricted stock-based awards     (900)    
Preferred stock dividends       0  
Common stock dividends       (3,340)  
Net income       9,016  
Other, net     (33)   (4)
Balance, end of period at Feb. 28, 2025 $ 17,261 0 35,691 (17,368) (1,062)
Cash dividends declared per common share $ 1.2        
Balance, beginning of period at Nov. 30, 2024   0 34,310 (19,045) (1,029)
Mandatory convertible preferred stock issued   0      
Other comprehensive loss, net         (74)
Common stock issued     213    
Stock-based compensation     1,198    
Repurchases of common stock     (10) (140)  
Shares repurchased for tax withholdings upon vesting of restricted stock-based awards     (1)    
Preferred stock dividends       0  
Common stock dividends       (1,119)  
Net income       2,936  
Other, net     (19)   41
Balance, end of period at Feb. 28, 2025 $ 17,261 0 35,691 (17,368) (1,062)
Cash dividends declared per common share $ 0.4        
Balance, beginning of period at May. 31, 2025 $ 20,969 0 37,107 (15,481) (657)
Mandatory convertible preferred stock issued   4,954      
Other comprehensive loss, net         (102)
Common stock issued     1,317    
Stock-based compensation     3,608    
Repurchases of common stock (93)   (6) (87)  
Shares repurchased for tax withholdings upon vesting of restricted stock-based awards     (111)    
Preferred stock dividends       (22)  
Common stock dividends       (4,285)  
Net income       12,783  
Other, net     (5)   38
Balance, end of period at Feb. 28, 2026 $ 39,051 4,954 41,910 (7,092) (721)
Cash dividends declared per common share $ 1.5        
Balance, beginning of period at Nov. 30, 2025   0 40,577 (9,355) (765)
Mandatory convertible preferred stock issued   4,954      
Other comprehensive loss, net         (6)
Common stock issued     9    
Stock-based compensation     1,328    
Repurchases of common stock     0 0  
Shares repurchased for tax withholdings upon vesting of restricted stock-based awards     (2)    
Preferred stock dividends       (22)  
Common stock dividends       (1,436)  
Net income       3,721  
Other, net     (2)   50
Balance, end of period at Feb. 28, 2026 $ 39,051 $ 4,954 $ 41,910 $ (7,092) $ (721)
Cash dividends declared per common share $ 0.5        
v3.25.4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 9 Months Ended
Feb. 28, 2026
Feb. 28, 2025
Cash flows from operating activities:    
Net Income (Loss) $ 12,783 $ 9,016
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 5,208 2,715
Amortization of intangible assets 1,239 1,763
Deferred income taxes (295) (1,097)
Stock-based compensation 3,608 3,374
Gains from investments and other, net (2,149) 422
Changes in operating assets and liabilities:    
Increase in trade receivables, net (2,201) (312)
Decrease in prepaid expenses and other assets 1,386 603
Decrease in accounts payable and other liabilities (821) (633)
Decrease in income taxes payable (1,651) (1,222)
Increase in deferred revenues 250 35
Net cash provided by operating activities 17,357 14,664
Cash flows from investing activities:    
Purchases of marketable securities and other investments (1,663) (838)
Proceeds from sales and maturities of marketable securities and other investments 4,857 444
Capital expenditures (39,170) (12,135)
Net cash used for investing activities (35,976) (12,529)
Cash flows from financing activities:    
Proceeds from issuances of common stock 1,317 520
Payments for repurchases of common stock (95) (450)
Shares repurchased for tax withholdings upon vesting of restricted stock-based awards (111) (900)
Proceeds from issuances of mandatory convertible preferred stock, net of issuance costs 4,954 0
Payments of dividends to stockholders (4,285) (3,340)
Proceeds from (repayments of) commercial paper and other short-term financing, net 2,279 (396)
Proceeds from issuances of senior notes, term loan credit agreements and other borrowings, net of issuance costs 44,544 19,548
Repayments of senior notes, term loan credit agreements and other borrowings (2,193) (9,771)
Other financing activities, net (215) (299)
Net cash provided by financing activities 46,195 4,912
Effect of exchange rate changes on cash and cash equivalents 93 (95)
Net increase in cash and cash equivalents 27,669 6,952
Cash and cash equivalents at beginning of period 10,786 10,454
Cash and cash equivalents at end of period 38,455 17,406
Non-cash investing activities:    
Unpaid capital expenditures $ 4,506 $ 1,846
v3.25.4
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Feb. 28, 2026
Feb. 28, 2025
Feb. 28, 2026
Feb. 28, 2025
Pay vs Performance Disclosure        
Net Income (Loss) $ 3,721 $ 2,936 $ 12,783 $ 9,016
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Feb. 28, 2026
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement

Our Section 16 officers and directors (as defined in Rule 16a-1 under the Exchange Act) may from time to time enter into plans for the purchase or sale of Oracle stock that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. During the quarter ended February 28, 2026, the following Section 16 officers adopted, modified or terminated a “Rule 10b5-1 trading arrangement” (as defined in Item 408 of Regulation S-K under Exchange Act):

•
Michael Sicilia, our Chief Executive Officer and Director, adopted a new trading plan on December 24, 2025. Mr. Sicilia’s plan is scheduled to terminate on October 9, 2026, subject to early termination for certain specified events set forth in the plan. The trading plan is intended to permit Mr. Sicilia to sell up to 40% of restricted stock units scheduled to vest on future dates (approximately 161,886 gross shares) net of taxes, subject to certain limit prices set forth in the plan;
•
Jeffrey O. Henley, our Executive Vice Chair of the Board of Directors, adopted a new trading plan on January 2, 2026. Mr. Henley’s plan is scheduled to terminate on June 30, 2026, subject to early termination for certain specified events set forth in the plan. The trading plan is intended to permit Mr. Henley to exercise and sell up to 400,000 Oracle stock options expiring on June 30, 2026; and
•
Stuart Levey, our Executive Vice President, Chief Legal Officer, adopted a new trading plan on January 13, 2026. Mr. Levey’s plan is scheduled to terminate on October 15, 2026, subject to early termination for certain specified events set forth in the plan. The trading plan is intended to permit Mr. Levey to sell up to 15,000 vested shares, subject to certain limit prices set forth in the plan.

The Rule 10b5-1 trading arrangement described above was adopted and precleared in accordance with Oracle’s Insider Trading Policy and actual sale transactions made pursuant to such trading arrangement will be disclosed publicly in future Section 16 filings with the SEC.
Michael Sicilia [Member]  
Trading Arrangements, by Individual  
Name Michael Sicilia
Title Chief Executive Officer and Director
Rule 10b5-1 Arrangement Adopted true
Adoption Date December 24, 2025
Rule 10b5-1 Arrangement Terminated true
Termination Date October 9, 2026
Arrangement Duration 180 days
Aggregate Available 161,886
Jeffrey O. Henley [Member]  
Trading Arrangements, by Individual  
Name Jeffrey O. Henley
Title Executive Vice Chair of the Board of Directors
Rule 10b5-1 Arrangement Adopted true
Adoption Date January 2, 2026
Rule 10b5-1 Arrangement Terminated true
Termination Date June 30, 2026
Arrangement Duration 180 days
Aggregate Available 400,000
Stuart Levey [Member]  
Trading Arrangements, by Individual  
Name Stuart Levey
Title Executive Vice President, Chief Legal Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date January 13, 2026
Rule 10b5-1 Arrangement Terminated true
Termination Date October 15, 2026
Arrangement Duration 276 days
Aggregate Available 15,000
v3.25.4
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER
 9 Months Ended
Feb. 28, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER
1.
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER

Basis of Presentation

We have prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the United States (U.S.) Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. However, we believe that the disclosures herein are adequate to ensure the information presented is not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2025.

We believe that all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year ending May 31, 2026. We reclassed certain revenues and other related disclosures to conform to the current period’s presentation for all periods presented in our condensed consolidated statements of operations. Such reclassifications did not affect total revenue, income from operations or net income.

There have been no changes to our significant accounting policies as disclosed in our Annual Report on Form 10-K for the fiscal year ended May 31, 2025 that had a significant impact on our condensed consolidated financial statements or notes thereto as of and for the nine months ended February 28, 2026.

Cash, Cash Equivalents and Restricted Cash

Restricted cash that was included within cash and cash equivalents as presented within our condensed consolidated balance sheets as of February 28, 2026 and May 31, 2025 and our condensed consolidated statements of cash flows for the nine months ended February 28, 2026 and 2025 was immaterial.

Remaining Performance Obligations from Contracts with Customers

Trade receivables, net of allowance for credit losses, and deferred revenues are reported net of related uncollected deferred revenues in our condensed consolidated balance sheets as of February 28, 2026 and May 31, 2025. The revenues recognized during the nine months ended February 28, 2026 and 2025 that were included in the opening deferred revenues balances as of May 31, 2025 and 2024 were approximately $8.7 billion and $8.6 billion, respectively. Revenues recognized from performance obligations satisfied in prior periods and impairment losses recognized on our receivables were immaterial in each of the three and nine months ended February 28, 2026 and 2025, respectively.

Remaining performance obligations were $552.6 billion as of February 28, 2026, of which we expect to recognize approximately 12% as revenues over the next twelve months, 31% over the subsequent month 13 to month 36, 35% over the subsequent month 37 to month 60 and the remainder thereafter. We have elected the optional exemption to not disclose the variable consideration for contracts in which the variable consideration expected to be received over the duration of the contract is allocated entirely to the wholly unsatisfied performance obligations. Refer to Note 1 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2025 for more information about our remaining performance obligations.

Sales of Financing Receivables

We offer certain of our customers the option to acquire certain of our products and services offerings through separate long-term payment contracts. We generally sell these contracts that we have financed for our customers on a non-recourse basis to financial institutions within 90 days of the contracts’ dates of execution. We record the transfers of amounts due from customers to financial institutions as sales of financing receivables because we are considered to have surrendered control of these financing receivables. Financing receivables sold to financial institutions were $333 million and $1.4 billion for the three and nine months ended February 28, 2026, respectively, and $306 million and $1.2 billion for the three and nine months ended February 28, 2025, respectively.

Non-Marketable Investments

Our non-marketable debt investments and equity securities and related instruments totaled $2.2 billion and $2.1 billion as of February 28, 2026 and May 31, 2025, respectively, and substantially all of the balance is included in other non-current assets in the accompanying condensed consolidated balance sheets and is subject to periodic credit losses and impairment reviews. Certain of these non-marketable equity securities and related instruments are adjusted for observable price changes from orderly transactions. The majority of the non-marketable debt and equity investments we held as of May 31, 2025 were with Ampere Computing Holdings LLC (Ampere), an equity method investee. On November 25, 2025, SoftBank Group Corp. acquired all of the equity interests of Ampere (the Ampere Acquisition). We received cash proceeds of $4.3 billion in exchange for our equity, debt and call option interests in Ampere in the Ampere Acquisition. We recorded $2.7 billion of realized gain, which is included in the non-operating income (expenses), net line item in our condensed consolidated statements of operations for the nine months ended February 28, 2026. We have no remaining investment in Ampere as of February 28, 2026. The substantial majority of the non-marketable investments we held as of February 28, 2026 were with TikTok USDS Joint Venture LLC, an equity method investee in which we have an ownership interest of 15% as of February 28, 2026.

Acquisition Related and Other Expenses

Acquisition related and other expenses primarily consist of personnel-related costs for transitional and certain other employees, certain business combination adjustments, including adjustments after the measurement period has ended, and certain other operating items, net.

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Transitional and other employee-related costs

 

$

—

 

 

$

—

 

 

$

1

 

 

$

3

 

Business combination adjustments, net

 

 

—

 

 

 

1

 

 

 

5

 

 

 

(4

)

Other, net

 

 

20

 

 

 

27

 

 

 

49

 

 

 

73

 

Total acquisition related and other expenses

 

$

20

 

 

$

28

 

 

$

55

 

 

$

72

 

Non-Operating Income (Expenses), net

Non-operating income (expenses), net consists primarily of interest income, net foreign currency exchange losses, the noncontrolling interests in the net profits of our majority-owned subsidiaries (primarily Oracle Financial Services Software Limited and Oracle Corporation Japan), net losses and gains related to marketable and non-marketable investments, including net losses and gains attributable to equity method investments (primarily Ampere) and net other income and expenses, including net gains and losses from our investment portfolio related to our deferred

compensation plan, for which an equal and offsetting amount was recorded to our operating expenses during the same period, and non-service net periodic pension income and losses.

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Interest income

 

$

196

 

 

$

135

 

 

$

491

 

 

$

418

 

Foreign currency losses, net

 

 

(51

)

 

 

(37

)

 

 

(110

)

 

 

(96

)

Noncontrolling interests in income

 

 

(53

)

 

 

(48

)

 

 

(146

)

 

 

(138

)

(Losses) gains from marketable and non-marketable investments, net

 

 

(7

)

 

 

(59

)

 

 

2,434

 

 

 

(236

)

Other income (expenses), net

 

 

47

 

 

 

(9

)

 

 

203

 

 

 

91

 

Total non-operating income (expenses), net

 

$

132

 

 

$

(18

)

 

$

2,872

 

 

$

39

 

 

Recent Accounting Pronouncements

Income Taxes: In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which enhances the disclosures required for income taxes in our annual consolidated financial statements. ASU 2023-09 is effective for us for our annual reporting for fiscal 2026 on a prospective basis. Both early adoption and retrospective application are permitted. We are currently evaluating the impact of our pending adoption of ASU 2023-09 on our consolidated financial statements.

Income Statement: In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses and also issued subsequent guidance clarifying the effective date of the initial guidance (collectively, Subtopic 220-40), which enhances the disclosures required for expense disaggregation in our annual and interim consolidated financial statements. This guidance is effective for us for our annual reporting for fiscal 2028 and for interim period reporting beginning in fiscal 2029 on a prospective basis. Both early adoption and retrospective application are permitted. We are currently evaluating the impact of our pending adoption of Subtopic 220-40 on our consolidated financial statements.

Software Development Costs: In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06), which clarifies and modernizes the accounting for internal-use software. ASU 2025-06 is effective for us in the first quarter of fiscal 2029, with early adoption permitted. The standard permits application of the guidance using a prospective, retrospective, or modified transition approach. We are currently evaluating the impact of our pending adoption of ASU 2025-06 on our consolidated financial statements.
v3.25.4
FAIR VALUE MEASUREMENTS
 9 Months Ended
Feb. 28, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
2.
FAIR VALUE MEASUREMENTS

We perform fair value measurements in accordance with FASB Accounting Standards Codification (ASC) 820, Fair Value Measurement (ASC 820). ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at their fair values, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the assets or liabilities, such as inherent risk, transfer restrictions and risk of nonperformance.

ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or a liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value:

•
Level 1: quoted prices in active markets for identical assets or liabilities;
•
Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or
•
Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Our assets and liabilities measured at fair value on a recurring basis consisted of the following (Level 1 and Level 2 inputs are defined above):

 

 

 

February 28, 2026

 

 

May 31, 2025

 

 

 

Fair Value Measurements
Using Input Types

 

 

 

 

 

Fair Value Measurements
Using Input Types

 

 

 

 

(in millions)

 

Level 1

 

 

Level 2

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

32,305

 

 

$

—

 

 

$

32,305

 

 

$

2,220

 

 

$

—

 

 

$

2,220

 

Time deposits and other

 

 

63

 

 

 

763

 

 

 

826

 

 

 

59

 

 

 

526

 

 

 

585

 

Derivative financial instruments

 

 

—

 

 

 

16

 

 

 

16

 

 

 

—

 

 

 

54

 

 

 

54

 

Total assets

 

$

32,368

 

 

$

779

 

 

$

33,147

 

 

$

2,279

 

 

$

580

 

 

$

2,859

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

26

 

 

$

26

 

 

Our cash equivalents and marketable securities investments consist of money market funds, time deposits and marketable equity securities. Marketable securities as presented per our condensed consolidated balance sheets included debt securities with original maturities at the time of purchase greater than three months and the remainder of the debt securities were included in cash and cash equivalents. We classify our marketable debt securities as available-for-sale debt securities at the time of purchase and reevaluate such classification as of each balance sheet date. As of February 28, 2026 and May 31, 2025, all of our marketable debt securities investments mature within one year. Our valuation techniques used to measure the fair values of our instruments that were classified as Level 1 in the table above were derived from quoted market prices and active markets for these instruments that exist. Our valuation techniques used to measure the fair values of Level 2 instruments listed in the table above were derived from the following: non-binding market consensus prices that were corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques, with all significant inputs derived from or corroborated by observable market data including reference rate yield curves, among others.

Based on the trading prices of the $130.9 billion and $90.3 billion of senior notes and other long-term borrowings and the related fair value hedges, if any, that we had outstanding as of February 28, 2026 and May 31, 2025, respectively, the estimated fair values of the senior notes and other long-term borrowings and the related fair value hedges, if any, using Level 2 inputs at February 28, 2026 and May 31, 2025 were $118.4 billion and $81.3 billion, respectively.
v3.25.4
NOTES PAYABLE AND OTHER BORROWINGS
 9 Months Ended
Feb. 28, 2026
Debt Disclosure [Abstract]  
NOTES PAYABLE AND OTHER BORROWINGS
3.
NOTES PAYABLE AND OTHER BORROWINGS

Senior Notes

In the first nine months of fiscal 2026, we issued a total of $43.0 billion par value of senior notes comprised of the following:

 

 

 

 

February 28, 2026

(Dollars in millions)

 

Date of
Issuance

 

Amount

 

 

Effective
Interest
Rate

Fixed-rate senior notes:

 

 

 

 

 

 

 

$3,000, 4.55%, due February 2029

 

February 2026

 

$

3,000

 

 

4.74%

$3,000, 4.45%, due September 2030

 

September 2025

 

 

3,000

 

 

4.55%

$3,500, 4.95%, due February 2031

 

February 2026

 

 

3,500

 

 

5.08%

$3,000, 4.80%, due September 2032

 

September 2025

 

 

3,000

 

 

4.87%

$3,000, 5.35%, due May 2033

 

February 2026

 

 

3,000

 

 

5.42%

$4,000, 5.20%, due September 2035

 

September 2025

 

 

4,000

 

 

5.25%

$5,000, 5.70%, due February 2036

 

February 2026

 

 

5,000

 

 

5.78%

$2,500, 5.875%, due September 2045

 

September 2025

 

 

2,500

 

 

5.91%

$2,250, 6.55%, due February 2046

 

February 2026

 

 

2,250

 

 

6.59%

$3,500, 5.95%, due September 2055

 

September 2025

 

 

3,500

 

 

6.05%

$5,000, 6.70%, due February 2056

 

February 2026

 

 

5,000

 

 

6.74%

$2,000, 6.10%, due September 2065

 

September 2025

 

 

2,000

 

 

6.17%

$2,750, 6.85%, due February 2066

 

February 2026

 

 

2,750

 

 

6.89%

Floating-rate senior notes:

 

 

 

 

 

 

 

$500, Compounded SOFR plus 1.11%, due February 2029

 

February 2026

 

 

500

 

 

4.92%

Total senior notes

 

 

 

$

43,000

 

 

 

Unamortized discount/issuance costs

 

 

 

 

(251

)

 

 

Total senior notes, net

 

 

 

$

42,749

 

 

 

We issued the senior notes for general corporate purposes, which may include capital expenditures, repayment of indebtedness, future investments or acquisitions and payment of cash dividends on or repurchases of our common stock. The interest is payable semi-annually for the fixed-rate senior notes and quarterly for the floating-rate senior notes. We may redeem some or all of the fixed-rate senior notes of each series prior to their maturity, subject to certain restrictions and the payment of an applicable make-whole premium in certain instances.

The senior notes rank pari passu with any other existing and future unsecured and unsubordinated indebtedness of Oracle. All existing and future indebtedness and liabilities of the subsidiaries of Oracle are or will be effectively senior to the senior notes. We were in compliance with all senior notes-related covenants as of February 28, 2026.

There have been no other significant changes in our notes payable or other borrowing arrangements that were disclosed in our Annual Report on Form 10-K for the fiscal year ended May 31, 2025. Refer to Note 12 below for subsequent events related to certain of our borrowing arrangements.
v3.25.4
RESTRUCTURING ACTIVITIES
 9 Months Ended
Feb. 28, 2026
Restructuring and Related Activities [Abstract]  
RESTRUCTURING ACTIVITIES
4.
RESTRUCTURING ACTIVITIES

Fiscal 2026 Oracle Restructuring Plan

During the first nine months of fiscal 2026, our management approved, committed to, initiated and further supplemented plans to restructure and further improve efficiencies in our operations due to our acquisitions and certain other operational activities (2026 Restructuring Plan). The total estimated restructuring costs associated with the 2026 Restructuring Plan are up to $2.1 billion and will be recorded to the restructuring expense line item within our condensed consolidated statements of operations as they are incurred through the end of the plan. We recorded $156 million and $982 million of restructuring expenses in connection with the 2026 Restructuring Plan for the three and nine months ended February 28, 2026, respectively. Any changes to the estimates of executing the 2026 Restructuring Plan will be reflected in our future results of operations.

Summary of All Plans

 

 

 

Accrued

 

 

Nine Months Ended February 28, 2026

 

 

Accrued

 

 

Total
Costs

 

 

Total
Expected

 

(in millions)

 

May 31,
2025(2)

 

 

Initial
Costs(3)

 

 

Adj. to
Cost(4)

 

 

Cash
Payments

 

 

Others(5)

 

 

February 28,
2026(2)

 

 

Accrued
to Date

 

 

Program
Costs

 

2026 Restructuring Plan(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud and software

 

$

—

 

 

$

333

 

 

$

24

 

 

$

(234

)

 

$

1

 

 

$

124

 

 

$

357

 

 

$

786

 

Hardware

 

 

—

 

 

 

37

 

 

 

1

 

 

 

(24

)

 

 

—

 

 

 

14

 

 

 

38

 

 

 

83

 

Services

 

 

—

 

 

 

124

 

 

 

6

 

 

 

(81

)

 

 

—

 

 

 

49

 

 

 

130

 

 

 

399

 

Other

 

 

—

 

 

 

423

 

 

 

34

 

 

 

(354

)

 

 

2

 

 

 

105

 

 

 

457

 

 

 

835

 

Total 2026 Restructuring Plan

 

$

—

 

 

$

917

 

 

$

65

 

 

$

(693

)

 

$

3

 

 

$

292

 

 

$

982

 

 

$

2,103

 

Total other restructuring plans(6)

 

$

212

 

 

$

—

 

 

$

(21

)

 

$

(95

)

 

$

4

 

 

$

100

 

 

 

 

 

 

 

Total restructuring plans

 

$

212

 

 

$

917

 

 

$

44

 

 

$

(788

)

 

$

7

 

 

$

392

 

 

 

 

 

 

 

 

(1)
Restructuring costs recorded to each of the operating segments presented primarily related to employee severance costs. Other restructuring costs represented employee severance costs not related to our operating segments and certain other restructuring plan costs.
(2)
As of February 28, 2026, $319 million and $73 million were recorded in other current liabilities and other non-current liabilities, respectively, within our condensed consolidated balance sheets. As of May 31, 2025, substantially all restructuring liabilities have been recorded in other current liabilities within our condensed consolidated balance sheets.
(3)
Costs recorded for the respective restructuring plans during the period presented.
(4)
All plan adjustments were changes in estimates whereby increases and decreases in costs were generally recorded to operating expenses in the period of adjustments.
(5)
Represents foreign currency translation and certain other non-cash adjustments.
(6)
Other restructuring plans presented in the table above included condensed information for other Oracle based plans and other plans associated with certain of our acquisitions whereby we continued to make cash outlays to settle obligations under these plans during the periods presented but for which the periodic impact to our condensed consolidated statements of operations was not significant.
v3.25.4
DEFERRED REVENUES
 9 Months Ended
Feb. 28, 2026
Deferred Revenue Disclosure [Abstract]  
DEFERRED REVENUES
5.
DEFERRED REVENUES

Deferred revenues consisted of the following:

 

(in millions)

 

February 28,
2026

 

 

May 31,
2025

 

Cloud

 

$

3,394

 

 

$

2,959

 

Software

 

 

5,480

 

 

 

5,350

 

Hardware

 

 

495

 

 

 

614

 

Services

 

 

512

 

 

 

464

 

Deferred revenues, current

 

 

9,881

 

 

 

9,387

 

Deferred revenues, non-current (in other non-current liabilities)

 

 

1,301

 

 

 

1,346

 

Total deferred revenues

 

$

11,182

 

 

$

10,733

 

 

Deferred cloud revenues, deferred software revenues and deferred hardware revenues substantially represent customer payments made in advance for cloud or support contracts that are billed in advance with corresponding revenues generally being recognized ratably or based upon customer usage over the respective contractual periods. Deferred services revenues include prepayments for our services business and revenues for these services are generally recognized as the services are performed.
v3.25.4
LEASES AND OTHER COMMITMENTS
 9 Months Ended
Feb. 28, 2026
Leases [Abstract]  
LEASES AND OTHER COMMITMENTS
6.
LEASES AND OTHER COMMITMENTS

Leases

We have operating and finance leases that primarily relate to our data centers and real estate facilities.

The components of lease expense were as follows:

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Operating lease cost

 

$

725

 

 

$

440

 

 

$

1,932

 

 

$

1,209

 

Finance lease cost:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of ROU assets

 

$

98

 

 

$

8

 

 

$

232

 

 

$

8

 

Interest on lease liabilities

 

 

77

 

 

 

6

 

 

 

184

 

 

 

6

 

Total finance lease cost

 

$

175

 

 

$

14

 

 

$

416

 

 

$

14

 

 

Supplemental balance sheet information related to leases was as follows:

 

(in millions)

 

February 28,
2026

 

 

May 31,
2025

 

Operating leases:

 

 

 

 

 

 

Operating lease ROU assets

 

$

20,817

 

 

$

13,145

 

Operating lease liabilities:

 

 

 

 

 

 

Operating lease liabilities, current

 

$

2,798

 

 

$

1,914

 

Operating lease liabilities, non-current

 

 

18,512

 

 

 

11,536

 

Total operating lease liabilities

 

$

21,310

 

 

$

13,450

 

Finance leases:

 

 

 

 

 

 

Finance lease ROU assets

 

$

6,060

 

 

$

2,874

 

Finance lease liabilities:

 

 

 

 

 

 

Finance lease liabilities, current

 

$

539

 

 

$

257

 

Finance lease liabilities, non-current

 

 

5,711

 

 

 

2,677

 

Total finance lease liabilities

 

$

6,250

 

 

$

2,934

 

Supplemental cash flow information related to leases was as follows:

 

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Operating leases

 

$

1,741

 

 

$

1,151

 

Finance leases

 

$

286

 

 

$

8

 

ROU assets obtained in exchange for lease obligations:

 

 

 

 

 

 

Operating leases

 

$

8,837

 

 

$

5,404

 

Finance leases

 

$

3,419

 

 

$

902

 

Maturities of lease liabilities were as follows as of February 28, 2026 (in millions):

 

 

Operating
Leases

 

 

Finance
Leases

 

Remainder of fiscal 2026

 

$

807

 

 

$

154

 

Fiscal 2027

 

 

2,712

 

 

 

535

 

Fiscal 2028

 

 

2,665

 

 

 

551

 

Fiscal 2029

 

 

2,589

 

 

 

567

 

Fiscal 2030

 

 

2,562

 

 

 

584

 

Fiscal 2031

 

 

2,507

 

 

 

601

 

Thereafter

 

 

14,884

 

 

 

6,199

 

Total lease payments

 

 

28,726

 

 

 

9,191

 

Less: imputed interest

 

 

(7,416

)

 

 

(2,941

)

Total lease liability

 

$

21,310

 

 

$

6,250

 

As of February 28, 2026, we had $261 billion of additional lease commitments, substantially all related to data center arrangements, that are generally expected to commence between the fourth quarter of fiscal 2026 and fiscal 2028 and for terms of fifteen to nineteen years that were not reflected on our condensed consolidated balance sheets as

of February 28, 2026. These additional lease commitments include a lease for which we have guaranteed up to $2.2 billion of the lessor’s borrowing, which matures in September 2026.

Unconditional Obligations

In the ordinary course of business, we enter into certain unconditional purchase obligations with our suppliers. These are agreements that are enforceable and legally binding and specify terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the payment. As of February 28, 2026, our unconditional purchase and certain other obligations, which were primarily related to data center power arrangements, were $11 billion.
v3.25.4
STOCKHOLDERS' EQUITY
 9 Months Ended
Feb. 28, 2026
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY
7.
STOCKHOLDERS’ EQUITY

Mandatory Convertible Preferred Stock

On February 5, 2026, we issued 100,000,000 depositary shares, representing 50,000 shares of our 6.50% Series D Mandatory Convertible Preferred Stock (Mandatory Convertible Preferred Stock). The Mandatory Convertible Preferred Stock has a $100,000 per share liquidation preference and $0.01 per share par value. The proceeds from the issuance of Mandatory Convertible Preferred Stock will be used for general corporate purposes, which may include capital expenditures, repayment of indebtedness, future investments or acquisitions and payment of cash dividends on or repurchases of our common stock.

Dividends are cumulative at an annual rate of 6.50% on the liquidation preference of $100,000 per share of Mandatory Convertible Preferred Stock and may be paid in cash, shares of our common stock or a combination of cash and shares of our common stock. Dividends that are declared will be payable on January 15, April 15, July 15 and October 15 to holders of record on the January 1, April 1, July 1 and October 1 immediately preceding the relevant dividend payment date.

Unless earlier converted, each outstanding share of Mandatory Convertible Preferred Stock will automatically convert on the mandatory conversion date, which is January 15, 2029, into between 499.8126 and 624.7657 shares of our common stock, depending on the applicable market value of our common stock upon conversion and subject to certain anti-dilution adjustments. The applicable market value of our common stock will be determined based on the average volume-weighted average price per share of the common stock over the 20 consecutive trading day period beginning on, and including, the 21st scheduled trading day immediately prior to January 15, 2029.

If a fundamental change occurs on or prior to January 15, 2029, then holders of Mandatory Convertible Preferred Stock will be entitled to convert all or any portion of their shares into shares of our common stock. In that case, the Mandatory Convertible Preferred Stock will convert at the fundamental change conversion rate for a specified period of time and holders will receive a make-whole dividend amount to compensate them for any unpaid accumulated dividends and any remaining future scheduled dividend payments.

Other than during a fundamental change conversion period, at any time prior to January 15, 2029, holders of Mandatory Convertible Preferred Stock may elect to convert all or any portion of their shares at a conversion rate of 499.8126 shares of common stock per share of Mandatory Convertible Preferred Stock, subject to certain anti-dilution and other adjustments.

The Mandatory Convertible Preferred Stock will not be redeemable at our election before the mandatory conversion date. The holders of the Mandatory Convertible Preferred Stock will not have any voting rights, with limited exceptions.

Common Stock

On February 2, 2026, we entered into an equity distribution agreement with ‎certain sales agents party thereto, pursuant to which we may sell shares of our common stock having aggregate sales proceeds of up to $20 billion from time to time through an “at-the-market” offering program (the ATM Program).

Subject to the terms and conditions of the agreement, we may sell shares of common stock through the sales agents listed in the agreement in amounts and at times to be determined by us. In addition, we may elect to sell, through the sales agents or through others (whether acting as agent or principal), shares of our common stock for forward settlement. We are not obligated to sell any of the shares of our common stock under the ATM Program. The proceeds from offerings under the ATM Program, if any, will be used for general corporate purposes, which may include capital expenditures, repayment of indebtedness, future investments or acquisitions and payment of cash dividends on or repurchases of our common stock. As of February 28, 2026, we have not sold any shares of our common stock under the ATM Program.

Common Stock Repurchases

Our Board of Directors (the Board) has approved a program for us to repurchase shares of our common stock. As of February 28, 2026, approximately $6.3 billion remained available for stock repurchases pursuant to our stock repurchase program. We repurchased 0.4 million shares for $93 million during the nine months ended February 28, 2026 and 2.9 million shares for $450 million during the nine months ended February 28, 2025 under the stock repurchase program.

Our stock repurchase authorization does not have an expiration date and the pace of any future repurchase activity will depend on factors such as our working capital needs, our cash requirements for capital expenditures, acquisitions and dividend payments, our debt repayment obligations or repurchases of our debt, our stock price and economic and market conditions. Our stock repurchases may be effected from time to time through open market purchases or pursuant to a Rule 10b5-1 trading plan. Our stock repurchase program may be accelerated, suspended, delayed or discontinued at any time.

Dividends on Preferred and Common Stock

In March 2026, the Board declared a quarterly cash dividend of $1,263.89 per share of our outstanding Mandatory Convertible Preferred Stock and $0.50 per share of our outstanding common stock. The Mandatory Convertible Preferred Stock dividend is payable on April 15, 2026 to stockholders of record as of the close of business on April 1, 2026 and the common stock dividend is payable on April 24, 2026 to stockholders of record as of the close of business on April 9, 2026. Future declarations of dividends on Oracle stocks and the establishment of future record and payment dates for our common stock are subject to the final determination of the Board.

Fiscal 2026 Stock‑Based Awards Activity and Compensation Expense

During the first nine months of fiscal 2026, we issued 20 million restricted stock-based units (RSUs) and stock options for 14 million shares of common stock (consisting of 13 million service-based stock options (SOs) and 1 million performance-based stock options (PSOs)). The majority of these awards were part of our annual stock-based award process. All of these awards are subject to service-based vesting restrictions, with the PSOs additionally having performance-based vesting restrictions. These fiscal 2026 stock-based award issuances were partially offset by stock-based award forfeitures and cancellations of 17 million shares during the first nine months of fiscal 2026.

The SOs were granted with an exercise price not less than the closing share price of our common stock on the grant date, generally become exercisable 25% annually over four years of service, and generally expire ten years from the date of grant. The PSOs were granted with an exercise price not less than the closing share price of our common stock on the grant date and expire ten years from the date of grant. We estimated the fair values of our SOs and

PSOs using the Black-Scholes-Merton option-pricing model, which was developed for use in estimating the fair values of SOs. Option valuation models, including the Black-Scholes-Merton option-pricing model, require the input of assumptions, including stock price volatility. Changes in the input assumptions can affect the fair value estimates and ultimately how much we recognize as stock-based compensation expense. The RSUs that were granted during the nine months ended February 28, 2026 generally vest 25% annually over four years of service and were valued using methodologies of a similar nature as those described in Note 11 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2025.

Stock-based compensation expense is included in the following operating expense line items in our condensed consolidated statements of operations:

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Cloud and software

 

$

171

 

 

$

160

 

 

$

478

 

 

$

459

 

Hardware

 

 

8

 

 

 

8

 

 

 

21

 

 

 

21

 

Services

 

 

58

 

 

 

54

 

 

 

158

 

 

 

150

 

Sales and marketing

 

 

212

 

 

 

200

 

 

 

574

 

 

 

556

 

Research and development

 

 

785

 

 

 

675

 

 

 

2,100

 

 

 

1,902

 

General and administrative

 

 

94

 

 

 

101

 

 

 

277

 

 

 

286

 

Total stock-based compensation

 

$

1,328

 

 

$

1,198

 

 

$

3,608

 

 

$

3,374

 
v3.25.4
INCOME TAXES
 9 Months Ended
Feb. 28, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES
8.
INCOME TAXES

Our effective tax rates for each of the periods presented are the result of the mix of income earned and losses incurred in various tax jurisdictions that apply a broad range of income tax rates. Our provision for income taxes varied from the tax computed at the U.S. federal statutory income tax rate for the periods presented primarily due to earnings in foreign operations, state taxes, the U.S. research and development tax credit, settlements with tax authorities, the tax effects of stock-based compensation, the Foreign Derived Intangible Income deduction and the tax effect of Global Intangible Low-Taxed Income. Our effective tax rates were 15.7% and 9.9% for the three and nine months ended February 28, 2026, respectively, and 14.9% and 9.9% for the three and nine months ended February 28, 2025, respectively.

Our net deferred tax assets were $10.6 billion and $10.2 billion as of February 28, 2026 and May 31, 2025, respectively. We believe that it is more likely than not that the net deferred tax assets will be realized in the foreseeable future. Realization of our net deferred tax assets is dependent upon our generation of sufficient taxable income in future years in appropriate tax jurisdictions to obtain benefit from the reversal of temporary differences, net operating loss carryforwards and tax credit carryforwards. The amount of net deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change.

Domestically, U.S. federal and state taxing authorities are currently examining income tax returns of Oracle and various acquired entities for years through fiscal 2024. Our U.S. federal income tax returns have been examined for all years prior to fiscal 2013 and, with some exceptions, we are no longer subject to audit for those periods. Our U.S. state income tax returns, with some exceptions, have been examined for all years prior to fiscal 2010, and we are no longer subject to audit for those periods.

Internationally, tax authorities for numerous non-U.S. jurisdictions are also examining or have examined returns of Oracle and various acquired entities for years through fiscal 2024. Many of the relevant tax years are at an advanced stage in examination or subsequent controversy resolution processes. With some exceptions, we are generally no longer subject to tax examinations in non-U.S. jurisdictions for years prior to fiscal 2001.

We are under audit by the U.S. Internal Revenue Service and various other domestic and foreign tax authorities with regards to income tax and indirect tax matters and are involved in various challenges and litigation in a number of countries, including, in particular, Australia, Brazil, Canada, Egypt, India, Indonesia, Israel, Italy, Pakistan, Saudi Arabia, South Korea and Spain, where the amounts under controversy are significant. In some, although not all, cases, we have reserved for potential adjustments to our provision for income taxes and accrual of indirect taxes that may result from examinations by, or any negotiated agreements with, these tax authorities or final outcomes in judicial proceedings and we believe that the final outcome of these examinations, agreements or judicial proceedings will not have a material effect on our results of operations. If events occur which indicate payment of these amounts is unnecessary, the reversal of the liabilities would result in the recognition of benefits in the period we determine the liabilities are no longer necessary. If our estimates of the federal, state and foreign income tax liabilities and indirect tax liabilities are less than the ultimate assessment, it could result in a further charge to expense.

We believe that we have adequately provided under GAAP for outcomes related to our tax audits. However, there can be no assurances as to the possible outcomes or any related financial statement effect thereof.

Pursuant to the U.S. One, Big, Beautiful Bill Act that was signed into law on July 4, 2025, we recorded a net tax expense of $958 million during the first quarter of fiscal 2026, primarily related to the remeasurement of a deferred tax liability previously recorded during fiscal 2021 as part of the partial realignment of our legal entity structure.
v3.25.4
SEGMENT INFORMATION
 9 Months Ended
Feb. 28, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION
9.
SEGMENT INFORMATION

ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision makers (CODMs) are our Chief Executive Officers and Chief Technology Officer. We are organized by line of business and geographically. While our CODMs evaluate results in a number of different ways, the line of business management structure is the primary basis for which the allocation of resources and financial results are assessed. The tabular information below presents financial information, including information on segment revenues, significant segment expenses categories and amounts on a segment basis and included within each reported measure of a segment’s profit or loss, that is regularly provided to our CODMs for their review and assists our CODMs with evaluating the company’s performance and allocating company resources.

We have three businesses—cloud and software (formerly referred to as cloud and license), hardware and services—each of which is comprised of a single operating segment. All three of our businesses market and sell our offerings globally to businesses of many sizes, government agencies, educational institutions and resellers with a worldwide sales force positioned to offer the combinations that best meet customer needs.

Our cloud and software business engages in the sale, marketing and delivery of our enterprise applications and infrastructure technologies through cloud and on-premise deployment models, including our cloud offerings and our software offerings, which include software license offerings and software support offerings. Cloud revenues are generated from applications and infrastructure offerings that are typically contracted with customers directly, billed to customers either in advance or in arrears, delivered to customers over time with our revenue recognition occurring over the contractual terms and renewed by customers upon completion of the contractual terms. Our cloud contracts provide customers with access to the latest technological updates as they become available and for which the customer contracted together with related technical support services over the contractual term. Software revenues represent (1) fees earned from granting customers software licenses, generally on a perpetual basis, to use our database and middleware and our applications software products within cloud and on-premise information technology (IT) environments. We generally recognize revenues at the point in time the software is made available to the customer to download and use, which typically is immediate upon signature of the license contract; and (2)

software support revenues, which are typically contracted with customers directly, billed to customers in advance, delivered to customers over time with our revenue recognition occurring over the contractual terms and renewed by customers upon completion of the contractual terms. Software support contracts provide customers with technical support services and unspecified license upgrades and enhancements during the term of the support period. In each fiscal year, our cloud and software business’ contractual activities, excluding the impact of timing of booking of large contracts, are typically highest in our fourth fiscal quarter, and the related cash flows are typically highest in the following quarter (i.e., in the first fiscal quarter of the next fiscal year) as we receive payments from these contracts. Costs associated with our cloud and software business are largely infrastructure- and personnel-related, including the cost of providing our cloud and software offerings, salaries and commissions earned by our sales force for the sale of our cloud and software offerings and marketing program costs.

Our hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Our hardware business also offers hardware support, which provides customers with software updates for the software components that are essential to the functionality of their hardware products and can also include product repairs, maintenance services and technical support services that are typically delivered and recognized ratably over the contractual term. Costs associated with our hardware business include the cost of hardware products, which consists of expenses for materials and labor used to produce these products by our internal manufacturing operations or by third-party manufacturers; the cost of materials used to repair customer products with eligible support contracts; the cost of labor and infrastructure to provide support services; and sales and marketing expenses, which are largely personnel-related and include variable compensation earned by our sales force for the sales of our hardware offerings.

Our services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies. Costs associated with our services business consist primarily of personnel-related expenses, technology infrastructure expenditures, facilities expenses and external contractor expenses.

We do not track our assets for each business. Consequently, it is not practical to show assets by operating segment.

The following table presents summary results for each of our three businesses:

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Cloud and software:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

15,033

 

 

$

12,136

 

 

$

41,793

 

 

$

35,525

 

Cloud and software expenses

 

 

4,574

 

 

 

2,690

 

 

 

11,799

 

 

 

7,667

 

Sales and marketing expenses

 

 

1,752

 

 

 

1,817

 

 

 

5,420

 

 

 

5,477

 

Margin(1)

 

$

8,707

 

 

$

7,629

 

 

$

24,574

 

 

$

22,381

 

Hardware:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

714

 

 

$

703

 

 

$

2,160

 

 

$

2,086

 

Hardware products and support expenses

 

 

172

 

 

 

187

 

 

 

546

 

 

 

499

 

Sales and marketing expenses

 

 

57

 

 

 

66

 

 

 

170

 

 

 

201

 

Margin(1)

 

$

485

 

 

$

450

 

 

$

1,444

 

 

$

1,386

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,443

 

 

$

1,291

 

 

$

4,220

 

 

$

3,885

 

Services expenses

 

 

1,043

 

 

 

1,029

 

 

 

3,143

 

 

 

3,174

 

Margin(1)

 

$

400

 

 

$

262

 

 

$

1,077

 

 

$

711

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

17,190

 

 

$

14,130

 

 

$

48,173

 

 

$

41,496

 

Expenses

 

 

7,598

 

 

 

5,789

 

 

 

21,078

 

 

 

17,018

 

Margin(1)

 

$

9,592

 

 

$

8,341

 

 

$

27,095

 

 

$

24,478

 

 

(1)
The margins reported reflect only the direct controllable costs of each line of business and do not include allocations of research and development, general and administrative and certain other allocable expenses, net. Additionally, the margins reported above do not reflect amortization of intangible assets, acquisition related and other expenses, restructuring expenses, stock-based compensation, interest expense or certain other non-operating income (expenses), net. Refer to the table below for a reconciliation of our total margin for operating segments to our income before income taxes as reported per our condensed consolidated statements of operations.

The following table reconciles total margin for operating segments to income before income taxes:

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Total margin for operating segments

 

$

9,592

 

 

$

8,341

 

 

$

27,095

 

 

$

24,478

 

Research and development

 

 

(2,607

)

 

 

(2,429

)

 

 

(7,658

)

 

 

(7,206

)

General and administrative

 

 

(389

)

 

 

(390

)

 

 

(1,174

)

 

 

(1,135

)

Amortization of intangible assets

 

 

(413

)

 

 

(548

)

 

 

(1,239

)

 

 

(1,763

)

Acquisition related and other

 

 

(20

)

 

 

(28

)

 

 

(55

)

 

 

(72

)

Restructuring

 

 

(153

)

 

 

(63

)

 

 

(961

)

 

 

(220

)

Stock-based compensation for operating segments

 

 

(449

)

 

 

(422

)

 

 

(1,231

)

 

 

(1,186

)

Expense allocations and other, net

 

 

(97

)

 

 

(103

)

 

 

(304

)

 

 

(327

)

Interest expense

 

 

(1,180

)

 

 

(892

)

 

 

(3,160

)

 

 

(2,600

)

Non-operating income (expenses), net

 

 

132

 

 

 

(18

)

 

 

2,872

 

 

 

39

 

Income before income taxes

 

$

4,416

 

 

$

3,448

 

 

$

14,185

 

 

$

10,008

 

 

Disaggregation of Revenues

We have considered information that is regularly reviewed by our CODMs in evaluating financial performance and disclosures presented outside of our financial statements in our earnings releases and used in investor presentations to disaggregate revenues to depict how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. The principal category we use to disaggregate revenues is the nature of our products and services as presented in our condensed consolidated statements of operations.

The following table is a summary of our total revenues by geographic region:

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Americas

 

$

11,361

 

 

$

9,000

 

 

$

31,490

 

 

$

26,305

 

EMEA(1)

 

 

3,964

 

 

 

3,421

 

 

 

11,204

 

 

 

10,029

 

Asia Pacific

 

 

1,865

 

 

 

1,709

 

 

 

5,479

 

 

 

5,162

 

Total revenues

 

$

17,190

 

 

$

14,130

 

 

$

48,173

 

 

$

41,496

 

 

(1)
Comprised of Europe, the Middle East and Africa

The following table presents our software revenues by offerings:

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Software license

 

$

1,150

 

 

$

1,129

 

 

$

2,856

 

 

$

3,194

 

Software support

 

 

4,969

 

 

 

4,797

 

 

 

14,861

 

 

 

14,562

 

Total software revenues

 

$

6,119

 

 

$

5,926

 

 

$

17,717

 

 

$

17,756

 

The following table presents our cloud revenues by offerings:

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Cloud applications

 

$

4,026

 

 

$

3,558

 

 

$

11,762

 

 

$

10,529

 

Cloud infrastructure

 

 

4,888

 

 

 

2,652

 

 

 

12,314

 

 

 

7,240

 

Total cloud revenues

 

$

8,914

 

 

$

6,210

 

 

$

24,076

 

 

$

17,769

 
v3.25.4
EARNINGS PER SHARE
 9 Months Ended
Feb. 28, 2026
Earnings Per Share [Abstract]  
EARNINGS PER SHARE
10.
EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income available to common shareholders for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders for the period by the weighted-average number of common shares outstanding during the period, plus the dilutive effect of outstanding restricted stock-based awards, stock options and shares issuable under the employee stock purchase plan as applicable pursuant to the treasury stock method and the dilutive effect of Mandatory Convertible Preferred Stock pursuant to the if-converted method. The following table sets forth the computation of basic and diluted earnings per share attributable to common shareholders:

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions, except per share data)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Net income

 

$

3,721

 

 

$

2,936

 

 

$

12,783

 

 

$

9,016

 

Preferred stock dividends

 

 

22

 

 

 

—

 

 

 

22

 

 

 

—

 

Net income available to common shareholders

 

$

3,699

 

 

$

2,936

 

 

$

12,761

 

 

$

9,016

 

Weighted-average common shares outstanding

 

 

2,874

 

 

 

2,799

 

 

 

2,855

 

 

 

2,783

 

Dilutive effect of employee stock plans

 

 

38

 

 

 

75

 

 

 

59

 

 

 

82

 

Dilutive weighted-average common shares outstanding

 

 

2,912

 

 

 

2,874

 

 

 

2,914

 

 

 

2,865

 

Basic earnings per share attributable to common shareholders

 

$

1.29

 

 

$

1.05

 

 

$

4.47

 

 

$

3.24

 

Diluted earnings per share attributable to common shareholders

 

$

1.27

 

 

$

1.02

 

 

$

4.38

 

 

$

3.15

 

Stock awards and shares excluded from calculation(1)

 

 

42

 

 

 

22

 

 

 

20

 

 

 

23

 

 

(1)
Consists of: (1) anti-dilutive restricted stock-based awards and stock options, both of which were service-based, as calculated using the treasury stock method, (2) anti-dilutive Mandatory Convertible Preferred Stock as calculated using the if-converted method and (3) contingently issuable shares pursuant to PSO arrangements as the performance conditions were not met. These excluded shares could be dilutive in the future.
v3.25.4
LEGAL PROCEEDINGS
 9 Months Ended
Feb. 28, 2026
Legal Proceedings [Abstract]  
LEGAL PROCEEDINGS
11.
LEGAL PROCEEDINGS

Netherlands Privacy Class Action

On August 14, 2020, The Privacy Collective (TPC), a foundation having its registered office in Amsterdam, filed a purported class action lawsuit against Oracle Nederland B.V, Oracle Corporation and Oracle America, Inc. (the Oracle Defendants), Salesforce.com, Inc. and SFDC Netherlands B.V. in the District Court of Amsterdam. TPC alleges that the Oracle Defendants’ Data Management Platform product violates certain articles of the European Union Charter of Fundamental Rights, the General Data Protection Regulation (GDPR) and the Dutch Telecommunications Act (Telecommunicatiewet). TPC claims damages under a number of categories, including: “immaterial damages” (at a fixed amount of €500 per Dutch internet user); “material damages” (in that the costs of loss of control over personal data should be equated to the market value of the personal data for parties like the Oracle Defendants); compensation for losses suffered due to an alleged data breach (at a fixed amount of €100 per Dutch internet user); and compensation for the costs of the litigation funder (10% to 25% of the compensation awarded); and the (actual) cost of the proceedings and extrajudicial costs.

We filed our defense on March 3, 2021, and on December 29, 2021, the District Court issued a judgment, holding that all of TPC’s claims were deemed inadmissible because of fundamental procedural flaws. TPC filed an appeal with the Court of Appeal in Amsterdam challenging the District Court’s judgment, except for the claims regarding the alleged data breach, which were dropped. On June 18, 2024, the Court of Appeal overturned the District Court’s decision regarding admissibility, thus permitting the case to proceed. We requested that the Court of Appeal permit an interim appeal to the Dutch Supreme Court and/or the European Court of Justice. On September 24, 2024, the

Court of Appeal issued a judgment confirming that TPC’s claims are admissible and referred the matter back to the District Court of Amsterdam for a decision on the merits of TPC’s claims, including TPC’s claims for damages under article 82 of the GDPR. The Court of Appeal also granted Oracle’s request for an interim appeal to the Supreme Court, appealing the June 18 and September 24, 2024 judgments.

Oracle filed its statement of appeal with the Dutch Supreme Court on December 20, 2024, and TPC appeared in the proceedings on January 31, 2025. The filing of the Supreme Court appeal effectively suspended proceedings before the District Court pursuant to applicable procedural rules. TPC filed its statement of defense in response to our Supreme Court appeal and a counter appeal on February 27, 2025. Oracle filed its statement of defense to the counter appeal on March 28, 2025. TPC and Oracle filed their written submissions setting out their detailed arguments on July 18, 2025. The parties filed their respective further written replies and rejoinders on August 28, 2025. A hearing on this matter was held on September 26, 2025. As scheduled, on January 30, 2026, the Advocate General handed down a non-binding opinion advising the Supreme Court to dismiss Oracle’s grounds of appeal and to uphold TPC’s appeal in part. On March 6, 2026, we filed a response to the opinion. The Supreme Court’s judgment is scheduled to be issued on June 28, 2026.

On September 24, 2025, TPC filed a motion in the District Court to lift the suspension of proceedings. On September 25, 2025, Oracle opposed that motion. The court has not yet ruled on that motion.

We believe that we have meritorious defenses against this action, including defenses to the quantum of damages claimed, and we will continue to vigorously defend it.

While the final outcome of this matter cannot be predicted with certainty, we do not believe that it will have a material impact on our financial position or results of operations.

Securities Class Action Regarding Oracle Cloud Infrastructure

On February 3, 2026, a putative class action, brought by an alleged stockholder of Oracle, was filed in the U.S. District Court for the District of Delaware against us, our Chief Technology Officer, our two Chief Executive Officers, two other Oracle executives, and one member of the Board. The plaintiff alleges that defendants made or are responsible for false and misleading statements regarding Oracle’s cloud infrastructure business. The plaintiff seeks a ruling that this case may proceed as a class action and seeks damages and attorneys’ fees and costs. The court has not yet set a schedule for defendants to respond to the plaintiff’s complaint.

We believe that we have meritorious defenses against this action, and we will continue to vigorously defend it.

While the final outcome of this matter cannot be predicted with certainty, we do not believe that it will have a material impact on our financial position or results of operations.

Other Litigation

We are party to various other legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business, including proceedings and claims that relate to acquisitions we have completed or to companies we have acquired or are attempting to acquire. While the outcome of these matters cannot be predicted with certainty, we do not believe that the outcome of any of these matters, individually or in the aggregate, will result in losses that are materially in excess of amounts already recognized, if any.
v3.25.4
SUBSEQUENT EVENTS
 9 Months Ended
Feb. 28, 2026
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
12.
SUBSEQUENT EVENTS

Revolving Credit Agreement

On March 6, 2026, Oracle terminated its existing $6.0 billion, five-year revolving credit agreement among Oracle, as borrower, Bank of America, N.A., as administrative agent, and the lenders and other agents named therein, which was originally scheduled to terminate on March 8, 2027. On March 6, 2026, Oracle entered into a new $10.0 billion, five-year revolving credit agreement (the Revolving Credit Agreement) among Oracle, as borrower, Bank of America, N.A., as administrative agent, and the lenders and other agents named therein, which provides for an unsecured $10.0 billion, five-year revolving credit facility (the Revolving Facility) to Oracle for working capital purposes and for other general corporate purposes.

Subject to certain conditions stated in the Revolving Credit Agreement, Oracle may borrow, prepay and reborrow amounts under the Revolving Facility during the term of the Revolving Credit Agreement. All amounts borrowed under the Revolving Credit Agreement will become due on March 6, 2031, unless the commitments are terminated earlier either at the request of Oracle or, if an event of default occurs, by the lenders (or automatically in the case of certain bankruptcy-related events). Interest is based on either (a) a Term Secured Overnight Financing Rate (SOFR)-based formula plus a margin of 87.5 basis points to 150.0 basis points, depending on the credit rating assigned to Oracle’s long-term senior unsecured debt, or (b) a Base Rate formula plus a margin of 0.0 basis point to 50.0 basis points, depending on the same such credit rating, each as set forth in the Revolving Credit Agreement.

The Revolving Credit Agreement contains certain customary representations and warranties, covenants and events of default, including the requirement that the ratio of “Consolidated EBITDA” to “Consolidated Net Interest Expense” (each term as defined in the Revolving Credit Agreement) of Oracle and its subsidiaries shall not be less than 3.0 to 1.0 at the end of any fiscal quarter during the period that the Revolving Credit Agreement is effective. If an event of default occurs under the Revolving Credit Agreement and is not cured within applicable grace periods or waived, any unpaid amounts under the Revolving Credit Agreement may be declared immediately due and payable and the commitments under the agreement may be terminated.

At this time, Oracle has not borrowed any funds under the Revolving Credit Agreement.

Commercial Paper Program

On March 6, 2026, Oracle increased its commercial paper program to $10.0 billion. Our commercial paper program allows us to issue and sell unsecured short-term promissory notes pursuant to a private placement exemption from the registration requirements under federal and state securities laws pursuant to dealer agreements with various banks and an Issuing and Paying Agency Agreement with Deutsche Bank Trust Company Americas.

As of February 28, 2026, $3.8 billion of commercial paper notes are outstanding under the commercial paper program.
v3.25.4
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER (Policies)
 9 Months Ended
Feb. 28, 2026
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

We have prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the United States (U.S.) Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. However, we believe that the disclosures herein are adequate to ensure the information presented is not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2025.

We believe that all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year ending May 31, 2026. We reclassed certain revenues and other related disclosures to conform to the current period’s presentation for all periods presented in our condensed consolidated statements of operations. Such reclassifications did not affect total revenue, income from operations or net income.

There have been no changes to our significant accounting policies as disclosed in our Annual Report on Form 10-K for the fiscal year ended May 31, 2025 that had a significant impact on our condensed consolidated financial statements or notes thereto as of and for the nine months ended February 28, 2026.
Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash

Restricted cash that was included within cash and cash equivalents as presented within our condensed consolidated balance sheets as of February 28, 2026 and May 31, 2025 and our condensed consolidated statements of cash flows for the nine months ended February 28, 2026 and 2025 was immaterial.
Remaining Performance Obligations from Contracts with Customers

Remaining Performance Obligations from Contracts with Customers

Trade receivables, net of allowance for credit losses, and deferred revenues are reported net of related uncollected deferred revenues in our condensed consolidated balance sheets as of February 28, 2026 and May 31, 2025. The revenues recognized during the nine months ended February 28, 2026 and 2025 that were included in the opening deferred revenues balances as of May 31, 2025 and 2024 were approximately $8.7 billion and $8.6 billion, respectively. Revenues recognized from performance obligations satisfied in prior periods and impairment losses recognized on our receivables were immaterial in each of the three and nine months ended February 28, 2026 and 2025, respectively.

Remaining performance obligations were $552.6 billion as of February 28, 2026, of which we expect to recognize approximately 12% as revenues over the next twelve months, 31% over the subsequent month 13 to month 36, 35% over the subsequent month 37 to month 60 and the remainder thereafter. We have elected the optional exemption to not disclose the variable consideration for contracts in which the variable consideration expected to be received over the duration of the contract is allocated entirely to the wholly unsatisfied performance obligations. Refer to Note 1 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2025 for more information about our remaining performance obligations.
Sales of Financing Receivables

Sales of Financing Receivables

We offer certain of our customers the option to acquire certain of our products and services offerings through separate long-term payment contracts. We generally sell these contracts that we have financed for our customers on a non-recourse basis to financial institutions within 90 days of the contracts’ dates of execution. We record the transfers of amounts due from customers to financial institutions as sales of financing receivables because we are considered to have surrendered control of these financing receivables. Financing receivables sold to financial institutions were $333 million and $1.4 billion for the three and nine months ended February 28, 2026, respectively, and $306 million and $1.2 billion for the three and nine months ended February 28, 2025, respectively.
Non-Marketable Investments

Non-Marketable Investments

Our non-marketable debt investments and equity securities and related instruments totaled $2.2 billion and $2.1 billion as of February 28, 2026 and May 31, 2025, respectively, and substantially all of the balance is included in other non-current assets in the accompanying condensed consolidated balance sheets and is subject to periodic credit losses and impairment reviews. Certain of these non-marketable equity securities and related instruments are adjusted for observable price changes from orderly transactions. The majority of the non-marketable debt and equity investments we held as of May 31, 2025 were with Ampere Computing Holdings LLC (Ampere), an equity method investee. On November 25, 2025, SoftBank Group Corp. acquired all of the equity interests of Ampere (the Ampere Acquisition). We received cash proceeds of $4.3 billion in exchange for our equity, debt and call option interests in Ampere in the Ampere Acquisition. We recorded $2.7 billion of realized gain, which is included in the non-operating income (expenses), net line item in our condensed consolidated statements of operations for the nine months ended February 28, 2026. We have no remaining investment in Ampere as of February 28, 2026. The substantial majority of the non-marketable investments we held as of February 28, 2026 were with TikTok USDS Joint Venture LLC, an equity method investee in which we have an ownership interest of 15% as of February 28, 2026.
Acquisition Related and Other Expenses

Acquisition Related and Other Expenses

Acquisition related and other expenses primarily consist of personnel-related costs for transitional and certain other employees, certain business combination adjustments, including adjustments after the measurement period has ended, and certain other operating items, net.

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Transitional and other employee-related costs

 

$

—

 

 

$

—

 

 

$

1

 

 

$

3

 

Business combination adjustments, net

 

 

—

 

 

 

1

 

 

 

5

 

 

 

(4

)

Other, net

 

 

20

 

 

 

27

 

 

 

49

 

 

 

73

 

Total acquisition related and other expenses

 

$

20

 

 

$

28

 

 

$

55

 

 

$

72

 
Non-Operating Income (Expenses), net

Non-Operating Income (Expenses), net

Non-operating income (expenses), net consists primarily of interest income, net foreign currency exchange losses, the noncontrolling interests in the net profits of our majority-owned subsidiaries (primarily Oracle Financial Services Software Limited and Oracle Corporation Japan), net losses and gains related to marketable and non-marketable investments, including net losses and gains attributable to equity method investments (primarily Ampere) and net other income and expenses, including net gains and losses from our investment portfolio related to our deferred

compensation plan, for which an equal and offsetting amount was recorded to our operating expenses during the same period, and non-service net periodic pension income and losses.

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Interest income

 

$

196

 

 

$

135

 

 

$

491

 

 

$

418

 

Foreign currency losses, net

 

 

(51

)

 

 

(37

)

 

 

(110

)

 

 

(96

)

Noncontrolling interests in income

 

 

(53

)

 

 

(48

)

 

 

(146

)

 

 

(138

)

(Losses) gains from marketable and non-marketable investments, net

 

 

(7

)

 

 

(59

)

 

 

2,434

 

 

 

(236

)

Other income (expenses), net

 

 

47

 

 

 

(9

)

 

 

203

 

 

 

91

 

Total non-operating income (expenses), net

 

$

132

 

 

$

(18

)

 

$

2,872

 

 

$

39

 
Recent Accounting Pronouncements

Recent Accounting Pronouncements

Income Taxes: In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which enhances the disclosures required for income taxes in our annual consolidated financial statements. ASU 2023-09 is effective for us for our annual reporting for fiscal 2026 on a prospective basis. Both early adoption and retrospective application are permitted. We are currently evaluating the impact of our pending adoption of ASU 2023-09 on our consolidated financial statements.

Income Statement: In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses and also issued subsequent guidance clarifying the effective date of the initial guidance (collectively, Subtopic 220-40), which enhances the disclosures required for expense disaggregation in our annual and interim consolidated financial statements. This guidance is effective for us for our annual reporting for fiscal 2028 and for interim period reporting beginning in fiscal 2029 on a prospective basis. Both early adoption and retrospective application are permitted. We are currently evaluating the impact of our pending adoption of Subtopic 220-40 on our consolidated financial statements.

Software Development Costs: In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06), which clarifies and modernizes the accounting for internal-use software. ASU 2025-06 is effective for us in the first quarter of fiscal 2029, with early adoption permitted. The standard permits application of the guidance using a prospective, retrospective, or modified transition approach. We are currently evaluating the impact of our pending adoption of ASU 2025-06 on our consolidated financial statements.
Fair Value Measurements

We perform fair value measurements in accordance with FASB Accounting Standards Codification (ASC) 820, Fair Value Measurement (ASC 820). ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at their fair values, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the assets or liabilities, such as inherent risk, transfer restrictions and risk of nonperformance.

ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or a liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value:

•
Level 1: quoted prices in active markets for identical assets or liabilities;
•
Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or
•
Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities.
Segment Information

ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision makers (CODMs) are our Chief Executive Officers and Chief Technology Officer. We are organized by line of business and geographically. While our CODMs evaluate results in a number of different ways, the line of business management structure is the primary basis for which the allocation of resources and financial results are assessed. The tabular information below presents financial information, including information on segment revenues, significant segment expenses categories and amounts on a segment basis and included within each reported measure of a segment’s profit or loss, that is regularly provided to our CODMs for their review and assists our CODMs with evaluating the company’s performance and allocating company resources.

We have three businesses—cloud and software (formerly referred to as cloud and license), hardware and services—each of which is comprised of a single operating segment. All three of our businesses market and sell our offerings globally to businesses of many sizes, government agencies, educational institutions and resellers with a worldwide sales force positioned to offer the combinations that best meet customer needs.
v3.25.4
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER (Tables)
 9 Months Ended
Feb. 28, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Acquisition Related and Other Expenses

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Transitional and other employee-related costs

 

$

—

 

 

$

—

 

 

$

1

 

 

$

3

 

Business combination adjustments, net

 

 

—

 

 

 

1

 

 

 

5

 

 

 

(4

)

Other, net

 

 

20

 

 

 

27

 

 

 

49

 

 

 

73

 

Total acquisition related and other expenses

 

$

20

 

 

$

28

 

 

$

55

 

 

$

72

 
Non-Operating Income (Expenses), net

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Interest income

 

$

196

 

 

$

135

 

 

$

491

 

 

$

418

 

Foreign currency losses, net

 

 

(51

)

 

 

(37

)

 

 

(110

)

 

 

(96

)

Noncontrolling interests in income

 

 

(53

)

 

 

(48

)

 

 

(146

)

 

 

(138

)

(Losses) gains from marketable and non-marketable investments, net

 

 

(7

)

 

 

(59

)

 

 

2,434

 

 

 

(236

)

Other income (expenses), net

 

 

47

 

 

 

(9

)

 

 

203

 

 

 

91

 

Total non-operating income (expenses), net

 

$

132

 

 

$

(18

)

 

$

2,872

 

 

$

39

 
v3.25.4
FAIR VALUE MEASUREMENTS (Tables)
 9 Months Ended
Feb. 28, 2026
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis

 

 

February 28, 2026

 

 

May 31, 2025

 

 

 

Fair Value Measurements
Using Input Types

 

 

 

 

 

Fair Value Measurements
Using Input Types

 

 

 

 

(in millions)

 

Level 1

 

 

Level 2

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

32,305

 

 

$

—

 

 

$

32,305

 

 

$

2,220

 

 

$

—

 

 

$

2,220

 

Time deposits and other

 

 

63

 

 

 

763

 

 

 

826

 

 

 

59

 

 

 

526

 

 

 

585

 

Derivative financial instruments

 

 

—

 

 

 

16

 

 

 

16

 

 

 

—

 

 

 

54

 

 

 

54

 

Total assets

 

$

32,368

 

 

$

779

 

 

$

33,147

 

 

$

2,279

 

 

$

580

 

 

$

2,859

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

26

 

 

$

26

 
v3.25.4
NOTES PAYABLE AND OTHER BORROWINGS (Tables)
 9 Months Ended
Feb. 28, 2026
Debt Disclosure [Abstract]  
Summary of Senior Notes

In the first nine months of fiscal 2026, we issued a total of $43.0 billion par value of senior notes comprised of the following:

 

 

 

 

February 28, 2026

(Dollars in millions)

 

Date of
Issuance

 

Amount

 

 

Effective
Interest
Rate

Fixed-rate senior notes:

 

 

 

 

 

 

 

$3,000, 4.55%, due February 2029

 

February 2026

 

$

3,000

 

 

4.74%

$3,000, 4.45%, due September 2030

 

September 2025

 

 

3,000

 

 

4.55%

$3,500, 4.95%, due February 2031

 

February 2026

 

 

3,500

 

 

5.08%

$3,000, 4.80%, due September 2032

 

September 2025

 

 

3,000

 

 

4.87%

$3,000, 5.35%, due May 2033

 

February 2026

 

 

3,000

 

 

5.42%

$4,000, 5.20%, due September 2035

 

September 2025

 

 

4,000

 

 

5.25%

$5,000, 5.70%, due February 2036

 

February 2026

 

 

5,000

 

 

5.78%

$2,500, 5.875%, due September 2045

 

September 2025

 

 

2,500

 

 

5.91%

$2,250, 6.55%, due February 2046

 

February 2026

 

 

2,250

 

 

6.59%

$3,500, 5.95%, due September 2055

 

September 2025

 

 

3,500

 

 

6.05%

$5,000, 6.70%, due February 2056

 

February 2026

 

 

5,000

 

 

6.74%

$2,000, 6.10%, due September 2065

 

September 2025

 

 

2,000

 

 

6.17%

$2,750, 6.85%, due February 2066

 

February 2026

 

 

2,750

 

 

6.89%

Floating-rate senior notes:

 

 

 

 

 

 

 

$500, Compounded SOFR plus 1.11%, due February 2029

 

February 2026

 

 

500

 

 

4.92%

Total senior notes

 

 

 

$

43,000

 

 

 

Unamortized discount/issuance costs

 

 

 

 

(251

)

 

 

Total senior notes, net

 

 

 

$

42,749

 

 

 
v3.25.4
RESTRUCTURING ACTIVITIES (Tables)
 9 Months Ended
Feb. 28, 2026
Restructuring and Related Activities [Abstract]  
Summary of All Plans

 

 

Accrued

 

 

Nine Months Ended February 28, 2026

 

 

Accrued

 

 

Total
Costs

 

 

Total
Expected

 

(in millions)

 

May 31,
2025(2)

 

 

Initial
Costs(3)

 

 

Adj. to
Cost(4)

 

 

Cash
Payments

 

 

Others(5)

 

 

February 28,
2026(2)

 

 

Accrued
to Date

 

 

Program
Costs

 

2026 Restructuring Plan(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud and software

 

$

—

 

 

$

333

 

 

$

24

 

 

$

(234

)

 

$

1

 

 

$

124

 

 

$

357

 

 

$

786

 

Hardware

 

 

—

 

 

 

37

 

 

 

1

 

 

 

(24

)

 

 

—

 

 

 

14

 

 

 

38

 

 

 

83

 

Services

 

 

—

 

 

 

124

 

 

 

6

 

 

 

(81

)

 

 

—

 

 

 

49

 

 

 

130

 

 

 

399

 

Other

 

 

—

 

 

 

423

 

 

 

34

 

 

 

(354

)

 

 

2

 

 

 

105

 

 

 

457

 

 

 

835

 

Total 2026 Restructuring Plan

 

$

—

 

 

$

917

 

 

$

65

 

 

$

(693

)

 

$

3

 

 

$

292

 

 

$

982

 

 

$

2,103

 

Total other restructuring plans(6)

 

$

212

 

 

$

—

 

 

$

(21

)

 

$

(95

)

 

$

4

 

 

$

100

 

 

 

 

 

 

 

Total restructuring plans

 

$

212

 

 

$

917

 

 

$

44

 

 

$

(788

)

 

$

7

 

 

$

392

 

 

 

 

 

 

 

 

(1)
Restructuring costs recorded to each of the operating segments presented primarily related to employee severance costs. Other restructuring costs represented employee severance costs not related to our operating segments and certain other restructuring plan costs.
(2)
As of February 28, 2026, $319 million and $73 million were recorded in other current liabilities and other non-current liabilities, respectively, within our condensed consolidated balance sheets. As of May 31, 2025, substantially all restructuring liabilities have been recorded in other current liabilities within our condensed consolidated balance sheets.
(3)
Costs recorded for the respective restructuring plans during the period presented.
(4)
All plan adjustments were changes in estimates whereby increases and decreases in costs were generally recorded to operating expenses in the period of adjustments.
(5)
Represents foreign currency translation and certain other non-cash adjustments.
(6)
Other restructuring plans presented in the table above included condensed information for other Oracle based plans and other plans associated with certain of our acquisitions whereby we continued to make cash outlays to settle obligations under these plans during the periods presented but for which the periodic impact to our condensed consolidated statements of operations was not significant.
v3.25.4
DEFERRED REVENUES (Tables)
 9 Months Ended
Feb. 28, 2026
Deferred Revenue Disclosure [Abstract]  
Deferred Revenues

Deferred revenues consisted of the following:

 

(in millions)

 

February 28,
2026

 

 

May 31,
2025

 

Cloud

 

$

3,394

 

 

$

2,959

 

Software

 

 

5,480

 

 

 

5,350

 

Hardware

 

 

495

 

 

 

614

 

Services

 

 

512

 

 

 

464

 

Deferred revenues, current

 

 

9,881

 

 

 

9,387

 

Deferred revenues, non-current (in other non-current liabilities)

 

 

1,301

 

 

 

1,346

 

Total deferred revenues

 

$

11,182

 

 

$

10,733

 
v3.25.4
LEASES AND OTHER COMMITMENTS (Tables)
 9 Months Ended
Feb. 28, 2026
Leases [Abstract]  
Components of Lease Expense

The components of lease expense were as follows:

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Operating lease cost

 

$

725

 

 

$

440

 

 

$

1,932

 

 

$

1,209

 

Finance lease cost:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of ROU assets

 

$

98

 

 

$

8

 

 

$

232

 

 

$

8

 

Interest on lease liabilities

 

 

77

 

 

 

6

 

 

 

184

 

 

 

6

 

Total finance lease cost

 

$

175

 

 

$

14

 

 

$

416

 

 

$

14

 

 
Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases was as follows:

 

(in millions)

 

February 28,
2026

 

 

May 31,
2025

 

Operating leases:

 

 

 

 

 

 

Operating lease ROU assets

 

$

20,817

 

 

$

13,145

 

Operating lease liabilities:

 

 

 

 

 

 

Operating lease liabilities, current

 

$

2,798

 

 

$

1,914

 

Operating lease liabilities, non-current

 

 

18,512

 

 

 

11,536

 

Total operating lease liabilities

 

$

21,310

 

 

$

13,450

 

Finance leases:

 

 

 

 

 

 

Finance lease ROU assets

 

$

6,060

 

 

$

2,874

 

Finance lease liabilities:

 

 

 

 

 

 

Finance lease liabilities, current

 

$

539

 

 

$

257

 

Finance lease liabilities, non-current

 

 

5,711

 

 

 

2,677

 

Total finance lease liabilities

 

$

6,250

 

 

$

2,934

 
Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

 

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Operating leases

 

$

1,741

 

 

$

1,151

 

Finance leases

 

$

286

 

 

$

8

 

ROU assets obtained in exchange for lease obligations:

 

 

 

 

 

 

Operating leases

 

$

8,837

 

 

$

5,404

 

Finance leases

 

$

3,419

 

 

$

902

 
Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities were as follows as of February 28, 2026 (in millions):

 

 

Operating
Leases

 

 

Finance
Leases

 

Remainder of fiscal 2026

 

$

807

 

 

$

154

 

Fiscal 2027

 

 

2,712

 

 

 

535

 

Fiscal 2028

 

 

2,665

 

 

 

551

 

Fiscal 2029

 

 

2,589

 

 

 

567

 

Fiscal 2030

 

 

2,562

 

 

 

584

 

Fiscal 2031

 

 

2,507

 

 

 

601

 

Thereafter

 

 

14,884

 

 

 

6,199

 

Total lease payments

 

 

28,726

 

 

 

9,191

 

Less: imputed interest

 

 

(7,416

)

 

 

(2,941

)

Total lease liability

 

$

21,310

 

 

$

6,250

 
v3.25.4
STOCKHOLDERS' EQUITY (Tables)
 9 Months Ended
Feb. 28, 2026
Stockholders' Equity Note [Abstract]  
Stock-Based Compensation Expense

Stock-based compensation expense is included in the following operating expense line items in our condensed consolidated statements of operations:

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Cloud and software

 

$

171

 

 

$

160

 

 

$

478

 

 

$

459

 

Hardware

 

 

8

 

 

 

8

 

 

 

21

 

 

 

21

 

Services

 

 

58

 

 

 

54

 

 

 

158

 

 

 

150

 

Sales and marketing

 

 

212

 

 

 

200

 

 

 

574

 

 

 

556

 

Research and development

 

 

785

 

 

 

675

 

 

 

2,100

 

 

 

1,902

 

General and administrative

 

 

94

 

 

 

101

 

 

 

277

 

 

 

286

 

Total stock-based compensation

 

$

1,328

 

 

$

1,198

 

 

$

3,608

 

 

$

3,374

 
v3.25.4
SEGMENT INFORMATION (Tables)
 9 Months Ended
Feb. 28, 2026
Segment Reporting [Abstract]  
Summary of Businesses Results

The following table presents summary results for each of our three businesses:

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Cloud and software:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

15,033

 

 

$

12,136

 

 

$

41,793

 

 

$

35,525

 

Cloud and software expenses

 

 

4,574

 

 

 

2,690

 

 

 

11,799

 

 

 

7,667

 

Sales and marketing expenses

 

 

1,752

 

 

 

1,817

 

 

 

5,420

 

 

 

5,477

 

Margin(1)

 

$

8,707

 

 

$

7,629

 

 

$

24,574

 

 

$

22,381

 

Hardware:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

714

 

 

$

703

 

 

$

2,160

 

 

$

2,086

 

Hardware products and support expenses

 

 

172

 

 

 

187

 

 

 

546

 

 

 

499

 

Sales and marketing expenses

 

 

57

 

 

 

66

 

 

 

170

 

 

 

201

 

Margin(1)

 

$

485

 

 

$

450

 

 

$

1,444

 

 

$

1,386

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,443

 

 

$

1,291

 

 

$

4,220

 

 

$

3,885

 

Services expenses

 

 

1,043

 

 

 

1,029

 

 

 

3,143

 

 

 

3,174

 

Margin(1)

 

$

400

 

 

$

262

 

 

$

1,077

 

 

$

711

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

17,190

 

 

$

14,130

 

 

$

48,173

 

 

$

41,496

 

Expenses

 

 

7,598

 

 

 

5,789

 

 

 

21,078

 

 

 

17,018

 

Margin(1)

 

$

9,592

 

 

$

8,341

 

 

$

27,095

 

 

$

24,478

 

 

(1)
The margins reported reflect only the direct controllable costs of each line of business and do not include allocations of research and development, general and administrative and certain other allocable expenses, net. Additionally, the margins reported above do not reflect amortization of intangible assets, acquisition related and other expenses, restructuring expenses, stock-based compensation, interest expense or certain other non-operating income (expenses), net. Refer to the table below for a reconciliation of our total margin for operating segments to our income before income taxes as reported per our condensed consolidated statements of operations.
Reconciliation of Total Margin for Operating Segment to Income before Income Taxes

The following table reconciles total margin for operating segments to income before income taxes:

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Total margin for operating segments

 

$

9,592

 

 

$

8,341

 

 

$

27,095

 

 

$

24,478

 

Research and development

 

 

(2,607

)

 

 

(2,429

)

 

 

(7,658

)

 

 

(7,206

)

General and administrative

 

 

(389

)

 

 

(390

)

 

 

(1,174

)

 

 

(1,135

)

Amortization of intangible assets

 

 

(413

)

 

 

(548

)

 

 

(1,239

)

 

 

(1,763

)

Acquisition related and other

 

 

(20

)

 

 

(28

)

 

 

(55

)

 

 

(72

)

Restructuring

 

 

(153

)

 

 

(63

)

 

 

(961

)

 

 

(220

)

Stock-based compensation for operating segments

 

 

(449

)

 

 

(422

)

 

 

(1,231

)

 

 

(1,186

)

Expense allocations and other, net

 

 

(97

)

 

 

(103

)

 

 

(304

)

 

 

(327

)

Interest expense

 

 

(1,180

)

 

 

(892

)

 

 

(3,160

)

 

 

(2,600

)

Non-operating income (expenses), net

 

 

132

 

 

 

(18

)

 

 

2,872

 

 

 

39

 

Income before income taxes

 

$

4,416

 

 

$

3,448

 

 

$

14,185

 

 

$

10,008

 

 
Disaggregation of Revenue by Geography

The following table is a summary of our total revenues by geographic region:

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Americas

 

$

11,361

 

 

$

9,000

 

 

$

31,490

 

 

$

26,305

 

EMEA(1)

 

 

3,964

 

 

 

3,421

 

 

 

11,204

 

 

 

10,029

 

Asia Pacific

 

 

1,865

 

 

 

1,709

 

 

 

5,479

 

 

 

5,162

 

Total revenues

 

$

17,190

 

 

$

14,130

 

 

$

48,173

 

 

$

41,496

 

 

(1)
Comprised of Europe, the Middle East and Africa

The following table presents our software revenues by offerings:

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Software license

 

$

1,150

 

 

$

1,129

 

 

$

2,856

 

 

$

3,194

 

Software support

 

 

4,969

 

 

 

4,797

 

 

 

14,861

 

 

 

14,562

 

Total software revenues

 

$

6,119

 

 

$

5,926

 

 

$

17,717

 

 

$

17,756

 

The following table presents our cloud revenues by offerings:

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Cloud applications

 

$

4,026

 

 

$

3,558

 

 

$

11,762

 

 

$

10,529

 

Cloud infrastructure

 

 

4,888

 

 

 

2,652

 

 

 

12,314

 

 

 

7,240

 

Total cloud revenues

 

$

8,914

 

 

$

6,210

 

 

$

24,076

 

 

$

17,769

 
v3.25.4
EARNINGS PER SHARE (Tables)
 9 Months Ended
Feb. 28, 2026
Earnings Per Share [Abstract]  
Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share attributable to common shareholders:

 

 

 

Three Months Ended
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions, except per share data)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Net income

 

$

3,721

 

 

$

2,936

 

 

$

12,783

 

 

$

9,016

 

Preferred stock dividends

 

 

22

 

 

 

—

 

 

 

22

 

 

 

—

 

Net income available to common shareholders

 

$

3,699

 

 

$

2,936

 

 

$

12,761

 

 

$

9,016

 

Weighted-average common shares outstanding

 

 

2,874

 

 

 

2,799

 

 

 

2,855

 

 

 

2,783

 

Dilutive effect of employee stock plans

 

 

38

 

 

 

75

 

 

 

59

 

 

 

82

 

Dilutive weighted-average common shares outstanding

 

 

2,912

 

 

 

2,874

 

 

 

2,914

 

 

 

2,865

 

Basic earnings per share attributable to common shareholders

 

$

1.29

 

 

$

1.05

 

 

$

4.47

 

 

$

3.24

 

Diluted earnings per share attributable to common shareholders

 

$

1.27

 

 

$

1.02

 

 

$

4.38

 

 

$

3.15

 

Stock awards and shares excluded from calculation(1)

 

 

42

 

 

 

22

 

 

 

20

 

 

 

23

 

 

(1)
Consists of: (1) anti-dilutive restricted stock-based awards and stock options, both of which were service-based, as calculated using the treasury stock method, (2) anti-dilutive Mandatory Convertible Preferred Stock as calculated using the if-converted method and (3) contingently issuable shares pursuant to PSO arrangements as the performance conditions were not met. These excluded shares could be dilutive in the future.
v3.25.4
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Feb. 28, 2026
Feb. 28, 2025
Feb. 28, 2026
Feb. 28, 2025
Contract with Customer, Asset and Liability [Abstract]        
Revenues recognized included in opening deferred revenues balances     $ 8,700 $ 8,600
Revenue, Performance Obligation [Abstract]        
Remaining performance obligation, amount $ 552,600   552,600  
Sales of Financing Receivables [Abstract]        
Sales of financing receivables $ 333 $ 306 $ 1,400 $ 1,200
v3.25.4
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER Narrative (Details1)
Feb. 28, 2026
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-12-01  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Remaining performance obligation, percentage 12.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-12-01  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Remaining performance obligation, percentage 31.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2028-12-01  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Remaining performance obligation, percentage 35.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 2 years
v3.25.4
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Nov. 25, 2025
Feb. 28, 2026
Feb. 28, 2025
Feb. 28, 2026
Feb. 28, 2025
May 31, 2025
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Non-marketable debt investments and equity securities and related instruments   $ 2,200   $ 2,200   $ 2,100
Received cash proceeds in exchange of equity, debt and call option interests $ 4,300          
Realized gain       2,700    
Acquisition Related and Other Expenses [Abstract]            
Transitional and other employee related costs   0 $ 0 1 $ 3  
Business combination adjustments, net   0 1 5 (4)  
Other, net   20 27 49 73  
Total acquisition related and other expenses   20 28 55 72  
Non-Operating Income , net [Abstract]            
Interest income   196 135 491 418  
Foreign currency losses, net   (51) (37) (110) (96)  
Noncontrolling interests in income   (53) (48) (146) (138)  
(Losses) gains from marketable and non-marketable investments, net   (7) (59) 2,434 (236)  
Other income (expenses), net   47 (9) 203 91  
Total non-operating income (expenses), net   $ 132 $ (18) $ 2,872 $ 39  
Tik Tok USDS Joint Venture LLC [Member]            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Ownership interest, percent   15.00%   15.00%    
v3.25.4
FAIR VALUE MEASUREMENTS (Details) - USD ($)
$ in Millions
Feb. 28, 2026
May 31, 2025
Assets [Abstract]    
Derivative financial instruments $ 16 $ 54
Total assets 33,147 2,859
Liabilities [Abstract]    
Derivative financial instruments 0 26
Money Market Funds [Member]    
Assets [Abstract]    
Investments and cash and cash equivalents 32,305 2,220
Time Deposits and Other [Member]    
Assets [Abstract]    
Investments and cash and cash equivalents 826 585
Fair Value Measurements Using Input Types Level 1 [Member]    
Assets [Abstract]    
Derivative financial instruments 16 0
Total assets 779 2,279
Liabilities [Abstract]    
Derivative financial instruments 0 0
Fair Value Measurements Using Input Types Level 1 [Member] | Money Market Funds [Member]    
Assets [Abstract]    
Investments and cash and cash equivalents 0 2,220
Fair Value Measurements Using Input Types Level 1 [Member] | Time Deposits and Other [Member]    
Assets [Abstract]    
Investments and cash and cash equivalents 763 59
Fair Value Measurements Using Input Types Level 2 [Member]    
Assets [Abstract]    
Derivative financial instruments 0 54
Total assets 32,368 580
Liabilities [Abstract]    
Derivative financial instruments 0 26
Fair Value Measurements Using Input Types Level 2 [Member] | Money Market Funds [Member]    
Assets [Abstract]    
Investments and cash and cash equivalents 32,305 0
Fair Value Measurements Using Input Types Level 2 [Member] | Time Deposits and Other [Member]    
Assets [Abstract]    
Investments and cash and cash equivalents $ 63 $ 526
v3.25.4
FAIR VALUE MEASUREMENTS Narrative (Details) - USD ($)
$ in Millions
Feb. 28, 2026
May 31, 2025
Marketable security investments maturity information [Abstract]    
Total debt, carrying value $ 43,000  
Senior Notes and Other Long Term Borrowings [Member]    
Marketable security investments maturity information [Abstract]    
Total debt, carrying value 130,900 $ 90,300
Fair Value Measurements Using Input Types Level 2 [Member] | Senior Notes and Other Borrowings [Member]    
Marketable security investments maturity information [Abstract]    
Total debt, fair value $ 118,400 $ 81,300
v3.25.4
NOTES PAYABLE AND OTHER BORROWINGS Narrative (Details)
$ in Billions
 9 Months Ended
Feb. 28, 2026
USD ($)
Debt Disclosure [Abstract]  
Senior notes, par value $ 43.0
v3.25.4
NOTES PAYABLE AND OTHER BORROWINGS (Details)
$ in Millions
 9 Months Ended
Feb. 28, 2026
USD ($)
Debt Instrument [Line Items]  
Total senior notes $ 43,000
Unamortized discount/issuance costs (251)
Total fixed-rate senior notes, net 42,749
Fixed-Rate Senior Notes Due February 2029 [Member]  
Debt Instrument [Line Items]  
Total senior notes $ 3,000
Date of issuance Feb. 04, 2026
Effective interest rate 4.74%
Fixed-Rate Senior Notes Due September 2030 [Member]  
Debt Instrument [Line Items]  
Total senior notes $ 3,000
Date of issuance Sep. 26, 2025
Effective interest rate 4.55%
Fixed-Rate Senior Notes Due February 2031 [Member]  
Debt Instrument [Line Items]  
Total senior notes $ 3,500
Date of issuance Feb. 04, 2026
Effective interest rate 5.08%
Fixed-Rate Senior Notes Due September 2032 [Member]  
Debt Instrument [Line Items]  
Total senior notes $ 3,000
Date of issuance Sep. 26, 2025
Effective interest rate 4.87%
Fixed-Rate Senior Notes Due May 2033 [Member]  
Debt Instrument [Line Items]  
Total senior notes $ 3,000
Date of issuance Feb. 04, 2026
Effective interest rate 5.42%
Fixed-Rate Senior Notes Due September 2035 [Member]  
Debt Instrument [Line Items]  
Total senior notes $ 4,000
Date of issuance Sep. 26, 2025
Effective interest rate 5.25%
Fixed-Rate Senior Notes Due February 2036 [Member]  
Debt Instrument [Line Items]  
Total senior notes $ 5,000
Date of issuance Feb. 04, 2026
Effective interest rate 5.78%
Fixed-Rate Senior Notes Due September 2045 [Member]  
Debt Instrument [Line Items]  
Total senior notes $ 2,500
Date of issuance Sep. 26, 2025
Effective interest rate 5.91%
Fixed-Rate Senior Notes Due February 2046 [Member]  
Debt Instrument [Line Items]  
Total senior notes $ 2,250
Date of issuance Feb. 04, 2026
Effective interest rate 6.59%
Fixed-Rate Senior Notes Due September 2055 [Member]  
Debt Instrument [Line Items]  
Total senior notes $ 3,500
Date of issuance Sep. 26, 2025
Effective interest rate 6.05%
Fixed-Rate Senior Notes Due February 2056 [Member]  
Debt Instrument [Line Items]  
Total senior notes $ 5,000
Date of issuance Feb. 04, 2026
Effective interest rate 6.74%
Fixed-Rate Senior Notes Due September 2065 [Member]  
Debt Instrument [Line Items]  
Total senior notes $ 2,000
Date of issuance Sep. 26, 2025
Effective interest rate 6.17%
Fixed-Rate Senior Notes Due February 2066 [Member]  
Debt Instrument [Line Items]  
Total senior notes $ 2,750
Date of issuance Feb. 04, 2026
Effective interest rate 6.89%
Floating-Rate Senior Notes Due Februay 2029 [Member]  
Debt Instrument [Line Items]  
Total senior notes $ 500
Date of issuance Feb. 04, 2026
Effective interest rate 4.92%
v3.25.4
NOTES PAYABLE AND OTHER BORROWINGS - Summary of Senior Notes (Parenthetical) (Details)
$ in Millions
 9 Months Ended
Feb. 28, 2026
USD ($)
Fixed-Rate Senior Notes Due February 2029 [Member]  
Debt Instrument [Line Items]  
Senior notes, par value $ 3,000
Stated interest rate percentage 4.55%
Maturity date Feb. 04, 2029
Fixed-Rate Senior Notes Due September 2030 [Member]  
Debt Instrument [Line Items]  
Senior notes, par value $ 3,000
Stated interest rate percentage 4.45%
Maturity date Sep. 26, 2030
Fixed-Rate Senior Notes Due February 2031 [Member]  
Debt Instrument [Line Items]  
Senior notes, par value $ 3,500
Stated interest rate percentage 4.95%
Maturity date Feb. 04, 2031
Fixed-Rate Senior Notes Due September 2032 [Member]  
Debt Instrument [Line Items]  
Senior notes, par value $ 3,000
Stated interest rate percentage 4.80%
Maturity date Sep. 26, 2032
Fixed-Rate Senior Notes Due May 2033 [Member]  
Debt Instrument [Line Items]  
Senior notes, par value $ 3,000
Stated interest rate percentage 5.35%
Maturity date May 04, 2033
Fixed-Rate Senior Notes Due September 2035 [Member]  
Debt Instrument [Line Items]  
Senior notes, par value $ 4,000
Stated interest rate percentage 5.20%
Maturity date Sep. 26, 2035
Fixed-Rate Senior Notes Due February 2036 [Member]  
Debt Instrument [Line Items]  
Senior notes, par value $ 5,000
Stated interest rate percentage 5.70%
Maturity date Feb. 04, 2036
Fixed-Rate Senior Notes Due September 2045 [Member]  
Debt Instrument [Line Items]  
Senior notes, par value $ 2,500
Stated interest rate percentage 5.875%
Maturity date Sep. 26, 2045
Fixed-Rate Senior Notes Due February 2046 [Member]  
Debt Instrument [Line Items]  
Senior notes, par value $ 2,250
Stated interest rate percentage 6.55%
Maturity date Feb. 04, 2046
Fixed-Rate Senior Notes Due September 2055 [Member]  
Debt Instrument [Line Items]  
Senior notes, par value $ 3,500
Stated interest rate percentage 5.95%
Maturity date Sep. 26, 2055
Fixed-Rate Senior Notes Due February 2056 [Member]  
Debt Instrument [Line Items]  
Senior notes, par value $ 5,000
Stated interest rate percentage 6.70%
Maturity date Feb. 04, 2056
Fixed-Rate Senior Notes Due September 2065 [Member]  
Debt Instrument [Line Items]  
Senior notes, par value $ 2,000
Stated interest rate percentage 6.10%
Maturity date Sep. 26, 2065
Fixed-Rate Senior Notes Due February 2066 [Member]  
Debt Instrument [Line Items]  
Senior notes, par value $ 2,750
Stated interest rate percentage 6.85%
Maturity date Feb. 04, 2066
Floating-Rate Senior Notes Due Februay 2029 [Member]  
Debt Instrument [Line Items]  
Senior notes, par value $ 500
Variable rate 1.11%
Maturity date Feb. 04, 2029
v3.25.4
RESTRUCTURING ACTIVITIES Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Feb. 28, 2026
Feb. 28, 2025
Feb. 28, 2026
Feb. 28, 2025
Restructuring Cost and Reserve [Line Items]        
Restructuring expenses $ 153 $ 63 $ 961 $ 220
Fiscal 2026 Oracle Restructuring [Member]        
Restructuring Cost and Reserve [Line Items]        
Total estimated restructuring costs [1] 2,103   2,103  
Restructuring expenses 156,000   982,000  
Fiscal 2026 Oracle Restructuring [Member] | Maximum        
Restructuring Cost and Reserve [Line Items]        
Total estimated restructuring costs $ 2,100   $ 2,100  
[1] Restructuring costs recorded to each of the operating segments presented primarily related to employee severance costs. Other restructuring costs represented employee severance costs not related to our operating segments and certain other restructuring plan costs.
v3.25.4
RESTRUCTURING ACTIVITIES (Details)
$ in Millions
 9 Months Ended
Feb. 28, 2026
USD ($)
Restructuring Reserve Disclosures [Abstract]  
Accrued at period start $ 212 [1],[2]
Initial Costs 917 [2],[3]
Adjustments to Cost 44 [2],[4]
Cash Payments (788)
Others 7 [2],[5]
Accrued at period end 392 [1],[2]
Fiscal 2026 Oracle Restructuring [Member]  
Restructuring Reserve Disclosures [Abstract]  
Accrued at period start 0 [1],[2]
Initial Costs 917 [2],[3]
Adjustments to Cost 65 [2],[4]
Cash Payments (693)
Others 3 [2],[5]
Accrued at period end 292 [1],[2]
Total Costs Accrued to Date 982 [2]
Total Expected Program Costs 2,103 [2]
Fiscal 2026 Oracle Restructuring [Member] | Other [Member]  
Restructuring Reserve Disclosures [Abstract]  
Accrued at period start 0 [1],[2]
Initial Costs 423 [2],[3]
Adjustments to Cost 34 [2],[4]
Cash Payments (354)
Others 2 [2],[5]
Accrued at period end 105 [1],[2]
Total Costs Accrued to Date 457 [2]
Total Expected Program Costs 835 [2]
Fiscal 2026 Oracle Restructuring [Member] | Cloud and License [Member] | Operating Segments [Member]  
Restructuring Reserve Disclosures [Abstract]  
Accrued at period start 0 [1],[2]
Initial Costs 333 [2],[3]
Adjustments to Cost 24 [2],[4]
Cash Payments (234) [2],[4]
Others 1 [2],[5]
Accrued at period end 124 [1],[2]
Total Costs Accrued to Date 357 [2]
Total Expected Program Costs 786 [2]
Fiscal 2026 Oracle Restructuring [Member] | Hardware [Member] | Operating Segments [Member]  
Restructuring Reserve Disclosures [Abstract]  
Accrued at period start 0 [1],[2]
Initial Costs 37 [2],[3]
Adjustments to Cost 1 [2],[4]
Cash Payments (24)
Others 0 [2],[5]
Accrued at period end 14 [1],[2]
Total Costs Accrued to Date 38 [2]
Total Expected Program Costs 83 [2]
Fiscal 2026 Oracle Restructuring [Member] | Services [Member] | Operating Segments [Member]  
Restructuring Reserve Disclosures [Abstract]  
Accrued at period start 0 [1],[2]
Initial Costs 124 [2],[3]
Adjustments to Cost 6 [2],[4]
Cash Payments (81)
Others 0 [2],[5]
Accrued at period end 49 [1],[2]
Total Costs Accrued to Date 130 [2]
Total Expected Program Costs 399 [2]
Other Restructuring Plans [Member]  
Restructuring Reserve Disclosures [Abstract]  
Accrued at period start 212 [1],[2],[6]
Initial Costs 0 [2],[3],[6]
Adjustments to Cost (21) [2],[4],[6]
Cash Payments (95) [2],[4],[6]
Others 4 [2],[5],[6]
Accrued at period end $ 100 [1],[2],[6]
[1] As of February 28, 2026, $319 million and $73 million were recorded in other current liabilities and other non-current liabilities, respectively, within our condensed consolidated balance sheets. As of May 31, 2025, substantially all restructuring liabilities have been recorded in other current liabilities within our condensed consolidated balance sheets.
[2] Restructuring costs recorded to each of the operating segments presented primarily related to employee severance costs. Other restructuring costs represented employee severance costs not related to our operating segments and certain other restructuring plan costs.
[3] Costs recorded for the respective restructuring plans during the period presented.
[4] All plan adjustments were changes in estimates whereby increases and decreases in costs were generally recorded to operating expenses in the period of adjustments.
[5] Represents foreign currency translation and certain other non-cash adjustments.
[6] Other restructuring plans presented in the table above included condensed information for other Oracle based plans and other plans associated with certain of our acquisitions whereby we continued to make cash outlays to settle obligations under these plans during the periods presented but for which the periodic impact to our condensed consolidated statements of operations was not significant.
v3.25.4
RESTRUCTURING ACTIVITIES - Summary of All Plans - Parenthetical (Details) - USD ($)
$ in Millions
Feb. 28, 2026
May 31, 2025
Restructuring Cost and Reserve [Line Items]    
Restructuring Reserve [1],[2] $ 392 $ 212
Other Current Liabilities [Member]    
Restructuring Cost and Reserve [Line Items]    
Restructuring Reserve 319  
Other Noncurrent Liabilities [Member]    
Restructuring Cost and Reserve [Line Items]    
Restructuring Reserve $ 73  
[1] As of February 28, 2026, $319 million and $73 million were recorded in other current liabilities and other non-current liabilities, respectively, within our condensed consolidated balance sheets. As of May 31, 2025, substantially all restructuring liabilities have been recorded in other current liabilities within our condensed consolidated balance sheets.
[2] Restructuring costs recorded to each of the operating segments presented primarily related to employee severance costs. Other restructuring costs represented employee severance costs not related to our operating segments and certain other restructuring plan costs.
v3.25.4
DEFERRED REVENUES (Details) - USD ($)
$ in Millions
Feb. 28, 2026
May 31, 2025
Deferred Revenues [Line Items]    
Deferred revenues, current $ 9,881 $ 9,387
Deferred revenues, non-current (in other non-current liabilities) 1,301 1,346
Total deferred revenues 11,182 10,733
Cloud [Member] | Cloud [Member]    
Deferred Revenues [Line Items]    
Deferred revenues, current 3,394 2,959
Software [Member] | Software [Member]    
Deferred Revenues [Line Items]    
Deferred revenues, current 5,480 5,350
Hardware [Member] | Hardware [Member]    
Deferred Revenues [Line Items]    
Deferred revenues, current 495 614
Services [Member] | Services [Member]    
Deferred Revenues [Line Items]    
Deferred revenues, current $ 512 $ 464
v3.25.4
LEASES AND OTHER COMMITMENTS - Components of Lease Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Feb. 28, 2026
Feb. 28, 2025
Feb. 28, 2026
Feb. 28, 2025
Lease, Cost [Abstract]        
Operating lease cost $ 725 $ 440 $ 1,932 $ 1,209
Finance lease cost:        
Amortization of ROU assets 98 8 232 8
Interest on lease liabilities 77 6 184 6
Total finance lease cost $ 175 $ 14 $ 416 $ 14
v3.25.4
LEASES AND OTHER COMMITMENTS - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Millions
Feb. 28, 2026
May 31, 2025
Operating leases:    
Operating lease ROU assets $ 20,817 $ 13,145
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other Assets, Noncurrent Other Assets, Noncurrent
Operating lease liabilities:    
Operating lease liabilities, current $ 2,798 $ 1,914
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Current Other Liabilities, Current
Operating lease liabilities, non-current $ 18,512 $ 11,536
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Operating lease liabilities, non-current Operating lease liabilities, non-current
Total operating lease liabilities $ 21,310 $ 13,450
Finance leases:    
Finance lease ROU assets 6,060 2,874
Finance lease liabilities:    
Finance lease liabilities, current 539 257
Finance lease liabilities, non-current 5,711 2,677
Total finance lease liabilities $ 6,250 $ 2,934
v3.25.4
LEASES AND OTHER COMMITMENTS - Supplemental Cash Flow Information Related to Leases (Details) - USD ($)
$ in Millions
 9 Months Ended
Feb. 28, 2026
Feb. 28, 2025
Cash paid for amounts included in the measurement of lease liabilities:    
Operating leases $ 1,741 $ 1,151
Finance leases 286 8
ROU assets obtained in exchange for lease obligations:    
Operating leases 8,837 5,404
Finance leases $ 3,419 $ 902
v3.25.4
LEASES AND OTHER COMMITMENTS - Schedule of Maturities of Lease Liabilities (Details) - USD ($)
$ in Millions
Feb. 28, 2026
May 31, 2025
Operating Leases    
Remainder of fiscal 2026 $ 807  
Fiscal 2027 2,712  
Fiscal 2028 2,665  
Fiscal 2029 2,589  
Fiscal 2030 2,562  
Fiscal 2031 2,507  
Thereafter 14,884  
Total lease payments 28,726  
Less: imputed interest (7,416)  
Total operating lease liabilities $ 21,310 $ 13,450
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Current Other Liabilities, Current
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Operating Lease, Liability, Noncurrent Operating Lease, Liability, Noncurrent
Finance Leases    
Remainder of fiscal 2026 $ 154  
Fiscal 2027 535  
Fiscal 2028 551  
Fiscal 2029 567  
Fiscal 2030 584  
Fiscal 2031 601  
Thereafter 6,199  
Total lease payments 9,191  
Less: imputed interest (2,941)  
Total finance lease liabilities $ 6,250 $ 2,934
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Noncurrent  
v3.25.4
LEASES AND OTHER COMMITMENTS Narrative (Details)
$ in Billions
Feb. 28, 2026
USD ($)
Lessee, Lease, Description [Line Items]  
Additional operating lease commitments $ 261.0
Lease guaranteed of lessor's borrowing $ 2.2
Guaranteed of lessor borrowing matures 2026-09
Unconditional purchase and certain other obligations $ 11.0
Minimum [Member]  
Lessee, Lease, Description [Line Items]  
Operating leases not yet commenced, terms 15 years
Maximum [Member]  
Lessee, Lease, Description [Line Items]  
Operating leases not yet commenced, terms 19 years
v3.25.4
STOCKHOLDERS' EQUITY Narrative (Details) - USD ($)
 9 Months Ended
Mar. 10, 2026
Feb. 05, 2026
Feb. 02, 2026
Feb. 28, 2026
Feb. 28, 2025
May 31, 2025
Mandatory Convertible Preferred Stock [Abstract]            
Preferred stock shares authorized       1,000,000   1,000,000
Preferred stock shares issued   100,000,000        
Stock Repurchases [Abstract]            
Amount available for future repurchases       $ 6,300,000,000    
Repurchases of common stock (in shares)       400,000 2,900,000  
Repurchased amount       $ 93,000,000 $ 450,000,000  
Dividends on Common Stock [Abstract]            
Proceeds from issuances of common stock       $ 1,317,000,000 $ 520,000,000  
Stock-based compensation expense and valuations of stock awards [Abstract]            
Forfeitures and cancellations (in shares)       17,000,000    
Employee Stock Option            
Stock-based compensation expense and valuations of stock awards [Abstract]            
Number of shares issued share-based awards       14,000,000    
Vesting percentage       25.00%    
Vesting period       4 years    
Expiration period       10 years    
Restricted Stock-based Units (RSUs)            
Stock-based compensation expense and valuations of stock awards [Abstract]            
Number of shares issued share-based awards       20,000,000    
Vesting percentage       25.00%    
Vesting period       4 years    
Service-based stock options (SOs)            
Stock-based compensation expense and valuations of stock awards [Abstract]            
Number of shares issued share-based awards       13,000,000    
Performance-based stock options (PSOs)            
Stock-based compensation expense and valuations of stock awards [Abstract]            
Number of shares issued share-based awards       1,000,000    
Subsequent Event | Quarterly Cash Dividend            
Dividends on Common Stock [Abstract]            
Dividends declared per share of outstanding common stock (in dollars per share) $ 0.5          
Dividend payable date Apr. 24, 2026          
Dividend record date Apr. 09, 2026          
6.50% Series D Mandatory Convertible Preferred Stock [Member]            
Mandatory Convertible Preferred Stock [Abstract]            
Preferred stock shares issued   50,000        
Preferred tock share liquidation preference   $ 100,000        
Preferred stock liquidation per share value   $ 0.01        
Preferred stock dividend rate percentage   6.50%   6.50%    
Preferred stock dividend payment terms       Dividends that are declared will be payable on January 15, April 15, July 15 and October 15 to holders of record on the January 1, April 1, July 1 and October 1 immediately preceding the relevant dividend payment date.    
Convertible preferred stock converted   499.8126        
Average volume weighted average price per share consecutive trading day   20 days        
6.50% Series D Mandatory Convertible Preferred Stock [Member] | Subsequent Event | Quarterly Cash Dividend            
Dividends on Common Stock [Abstract]            
Dividends declared per share of outstanding preferred stock (in dollars per share) $ 1,263.89          
Dividend payable date Apr. 15, 2026          
Dividend record date Apr. 01, 2026          
Minimum | 6.50% Series D Mandatory Convertible Preferred Stock [Member]            
Mandatory Convertible Preferred Stock [Abstract]            
Convertible preferred stock converted   499.8126        
Maximum | 6.50% Series D Mandatory Convertible Preferred Stock [Member]            
Mandatory Convertible Preferred Stock [Abstract]            
Convertible preferred stock converted   624.7657        
ATM Offering [Member]            
Dividends on Common Stock [Abstract]            
Proceeds from issuances of common stock     $ 20,000,000,000      
Common stock shares sold       0    
v3.25.4
STOCKHOLDERS' EQUITY (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Feb. 28, 2026
Feb. 28, 2025
Feb. 28, 2026
Feb. 28, 2025
Stock-based compensation expense and valuations of stock awards [Abstract]        
Total stock-based compensation $ 1,328 $ 1,198 $ 3,608 $ 3,374
Cloud and Software [Member]        
Stock-based compensation expense and valuations of stock awards [Abstract]        
Total stock-based compensation 171 160 478 459
Hardware [Member]        
Stock-based compensation expense and valuations of stock awards [Abstract]        
Total stock-based compensation 8 8 21 21
Services [Member]        
Stock-based compensation expense and valuations of stock awards [Abstract]        
Total stock-based compensation 58 54 158 150
Sales and marketing [Member]        
Stock-based compensation expense and valuations of stock awards [Abstract]        
Total stock-based compensation 212 200 574 556
Research and development [Member]        
Stock-based compensation expense and valuations of stock awards [Abstract]        
Total stock-based compensation 785 675 2,100 1,902
General and administrative [Member]        
Stock-based compensation expense and valuations of stock awards [Abstract]        
Total stock-based compensation $ 94 $ 101 $ 277 $ 286
v3.25.4
INCOME TAXES Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Feb. 28, 2026
Aug. 31, 2025
Feb. 28, 2025
Feb. 28, 2026
Feb. 28, 2025
May 31, 2025
Income Tax Disclosure [Abstract]            
Effective income tax rate 15.70%   14.90% 9.90% 9.90%  
Net deferred tax assets $ 10,600     $ 10,600   $ 10,200
Net tax expense   $ 958        
v3.25.4
SEGMENT INFORMATION Narrative (Details)
 9 Months Ended
Feb. 28, 2026
Segment
Business
Segment reporting information [Line Items]  
Number of businesses | Business 3
Number of reportable segments 3
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration] srt:ChiefExecutiveOfficerMember, Chief Technology Officer [Member]
Segment Reporting, CODM, Profit (Loss) Measure, How Used, Description our CODMs evaluate results in a number of different ways, the line of business management structure is the primary basis for which the allocation of resources and financial results are assessed. The tabular information below presents financial information, including information on segment revenues, significant segment expenses categories and amounts on a segment basis and included within each reported measure of a segment’s profit or loss, that is regularly provided to our CODMs for their review and assists our CODMs with evaluating the company’s performance and allocating company resources.
Cloud and Software [Member]  
Segment reporting information [Line Items]  
Number of operating segments 1
Hardware [Member]  
Segment reporting information [Line Items]  
Number of operating segments 1
Services [Member]  
Segment reporting information [Line Items]  
Number of operating segments 1
v3.25.4
SEGMENT INFORMATION (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Feb. 28, 2026
Feb. 28, 2025
Feb. 28, 2026
Feb. 28, 2025
Segment reporting information [Line Items]        
Revenues $ 17,190 $ 14,130 $ 48,173 $ 41,496
Cloud and software expenses [1] 4,776 2,882 12,373 8,226
Sales and marketing expenses [1] 2,052 2,119 6,263 6,345
Operating income 5,464 4,358 14,473 12,569
Operating Segments [Member]        
Segment reporting information [Line Items]        
Revenues 17,190 14,130 48,173 41,496
Expenses 7,598 5,789 21,078 17,018
Operating income [2] 9,592 8,341 27,095 24,478
Operating Segments [Member] | Cloud and Software [Member]        
Segment reporting information [Line Items]        
Revenues 15,033 12,136 41,793 35,525
Cloud and software expenses 4,574 2,690 11,799 7,667
Sales and marketing expenses 1,752 1,817 5,420 5,477
Operating income [2] 8,707 7,629 24,574 22,381
Operating Segments [Member] | Hardware [Member]        
Segment reporting information [Line Items]        
Revenues 714 703 2,160 2,086
Hardware products and support expenses 172 187 546 499
Sales and marketing expenses 57 66 170 201
Operating income [2] 485 450 1,444 1,386
Operating Segments [Member] | Services [Member]        
Segment reporting information [Line Items]        
Revenues 1,443 1,291 4,220 3,885
Services expenses 1,043 1,029 3,143 3,174
Operating income [2] $ 400 $ 262 $ 1,077 $ 711
[1] Exclusive of amortization of intangible assets, which is shown separately.
[2] The margins reported reflect only the direct controllable costs of each line of business and do not include allocations of research and development, general and administrative and certain other allocable expenses, net. Additionally, the margins reported above do not reflect amortization of intangible assets, acquisition related and other expenses, restructuring expenses, stock-based compensation, interest expense or certain other non-operating income (expenses), net. Refer to the table below for a reconciliation of our total margin for operating segments to our income before income taxes as reported per our condensed consolidated statements of operations.
v3.25.4
SEGMENT INFORMATION RECONCILIATION (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Feb. 28, 2026
Feb. 28, 2025
Feb. 28, 2026
Feb. 28, 2025
Reconciliation of Total Operating Segment Margin to Income Before Provision for Income Taxes [Abstract]        
Total margin for operating segments $ 5,464 $ 4,358 $ 14,473 $ 12,569
Research and development (2,607) (2,429) (7,658) (7,206)
General and administrative (389) (390) (1,174) (1,135)
Amortization of intangible assets (413) (548) (1,239) (1,763)
Acquisition related and other (20) (28) (55) (72)
Restructuring (153) (63) (961) (220)
Stock-based compensation for operating segments (449) (422) (1,231) (1,186)
Expense allocations and other, net (97) (103) (304) (327)
Interest expense (1,180) (892) (3,160) (2,600)
Non-operating income (expenses), net 132 (18) 2,872 39
Income before income taxes 4,416 3,448 14,185 10,008
Operating Segments [Member]        
Reconciliation of Total Operating Segment Margin to Income Before Provision for Income Taxes [Abstract]        
Total margin for operating segments [1] $ 9,592 $ 8,341 $ 27,095 $ 24,478
[1] The margins reported reflect only the direct controllable costs of each line of business and do not include allocations of research and development, general and administrative and certain other allocable expenses, net. Additionally, the margins reported above do not reflect amortization of intangible assets, acquisition related and other expenses, restructuring expenses, stock-based compensation, interest expense or certain other non-operating income (expenses), net. Refer to the table below for a reconciliation of our total margin for operating segments to our income before income taxes as reported per our condensed consolidated statements of operations.
v3.25.4
SUMMARY OF TOTAL REVENUES BY GEOGRAPHIC REGION (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Feb. 28, 2026
Feb. 28, 2025
Feb. 28, 2026
Feb. 28, 2025
Disaggregation of Revenue [Line Items]        
Total revenues $ 17,190 $ 14,130 $ 48,173 $ 41,496
Americas [Member]        
Disaggregation of Revenue [Line Items]        
Total revenues 11,361 9,000 31,490 26,305
EMEA [Member]        
Disaggregation of Revenue [Line Items]        
Total revenues [1] 3,964 3,421 11,204 10,029
Asia Pacific [Member]        
Disaggregation of Revenue [Line Items]        
Total revenues $ 1,865 $ 1,709 $ 5,479 $ 5,162
[1] Comprised of Europe, the Middle East and Africa
v3.25.4
SUMMARY OF SOFTWARE REVENUES AND CLOUD REVENUES BY OFFERINGS (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Feb. 28, 2026
Feb. 28, 2025
Feb. 28, 2026
Feb. 28, 2025
Disaggregation of Revenue [Line Items]        
Total revenues $ 17,190 $ 14,130 $ 48,173 $ 41,496
Software License [Member]        
Disaggregation of Revenue [Line Items]        
Total revenues 1,150 1,129 2,856 3,194
Software Support [Member]        
Disaggregation of Revenue [Line Items]        
Total revenues 4,969 4,797 14,861 14,562
Software Revenues [Member]        
Disaggregation of Revenue [Line Items]        
Total revenues 6,119 5,926 17,717 17,756
Cloud Applications [Member]        
Disaggregation of Revenue [Line Items]        
Total revenues 4,026 3,558 11,762 10,529
Cloud Infrastructure [Member]        
Disaggregation of Revenue [Line Items]        
Total revenues 4,888 2,652 12,314 7,240
Cloud Revenues [Member]        
Disaggregation of Revenue [Line Items]        
Total revenues $ 8,914 $ 6,210 $ 24,076 $ 17,769
v3.25.4
EARNINGS PER SHARE (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Feb. 28, 2026
Feb. 28, 2025
Feb. 28, 2026
Feb. 28, 2025
Earnings Per Share [Abstract]        
Net Income (Loss) $ 3,721 $ 2,936 $ 12,783 $ 9,016
Preferred stock dividends 22 0 22 0
Net income available to common shareholders, Basic 3,699 2,936 12,761 9,016
Net income available to common shareholders, Diluted $ 3,699 $ 2,936 $ 12,761 $ 9,016
Weighted-average common shares outstanding 2,874 2,799 2,855 2,783
Dilutive effect of employee stock plans 38 75 59 82
Dilutive weighted-average common shares outstanding 2,912 2,874 2,914 2,865
Basic earnings per share attributable to common shareholders $ 1.29 $ 1.05 $ 4.47 $ 3.24
Diluted earnings per share attributable to common shareholders $ 1.27 $ 1.02 $ 4.38 $ 3.15
Stock awards and shares excluded from calculation [1] 42 22 20 23
[1] Consists of: (1) anti-dilutive restricted stock-based awards and stock options, both of which were service-based, as calculated using the treasury stock method, (2) anti-dilutive Mandatory Convertible Preferred Stock as calculated using the if-converted method and (3) contingently issuable shares pursuant to PSO arrangements as the performance conditions were not met. These excluded shares could be dilutive in the future.
v3.25.4
LEGAL PROCEEDINGS (Details) - Netherlands Privacy Class Action
Aug. 14, 2020
EUR (€)
Loss Contingencies [Line Items]  
Immaterial damages claimed, fixed amount per internet user € 500
Compensation for losses due to data breach, fixed amount per internet user € 100
Minimum  
Loss Contingencies [Line Items]  
Percentage of compensation for costs of litigation awarded 10.00%
Maximum  
Loss Contingencies [Line Items]  
Percentage of compensation for costs of litigation awarded 25.00%
v3.25.4
SUBSEQUENT EVENTS Narrative (Details) - USD ($)
Mar. 06, 2026
Feb. 28, 2026
Revolving Credit Loans [Member] | Subsequent Event    
Subsequent Event [Line Items]    
Revolving credit facility $ 6,000,000,000  
Revolving credit facility term 5 years  
Revolving credit facility, expiration date Mar. 08, 2027  
Consolidated EBITDA to consolidated net interest expense ratio 3  
Outstanding revolving credit facility $ 0  
New Revolving Credit Agreement [Member] | Subsequent Event    
Subsequent Event [Line Items]    
Revolving credit facility $ 10,000,000,000  
Revolving credit facility term 5 years  
Revolving credit facility, expiration date Mar. 06, 2031  
Unsecured Revolving Credit Facility [Member] | Subsequent Event    
Subsequent Event [Line Items]    
Revolving credit facility $ 10,000,000,000  
Revolving credit facility term 5 years  
SOFR [Member] | Minimum | Revolving Credit Loans [Member] | Subsequent Event    
Subsequent Event [Line Items]    
Revolving credit facility, basis spread on variable rate 0.875%  
SOFR [Member] | Maximum | Revolving Credit Loans [Member] | Subsequent Event    
Subsequent Event [Line Items]    
Revolving credit facility, basis spread on variable rate 1.50%  
Base Rate [Member] | Minimum | Revolving Credit Loans [Member] | Subsequent Event    
Subsequent Event [Line Items]    
Revolving credit facility, basis spread on variable rate 0.00%  
Base Rate [Member] | Maximum | Revolving Credit Loans [Member] | Subsequent Event    
Subsequent Event [Line Items]    
Revolving credit facility, basis spread on variable rate 0.50%  
Commercial Paper [Member]    
Subsequent Event [Line Items]    
Outstanding notes   $ 3,800,000,000
Commercial Paper [Member] | Subsequent Event    
Subsequent Event [Line Items]    
Revolving credit facility $ 10,000,000,000