ORACLE CORP, 10-Q filed on 9/11/2026
Quarterly Report
v3.26.1
DOCUMENT AND ENTITY INFORMATION - shares
 3 Months Ended
Aug. 31, 2026
Sep. 07, 2026
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Aug. 31, 2026  
Document Fiscal Period Focus Q1  
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)   3,023,736,000
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 $0.01 per  
Trading Symbol ORCL PRD  
Security Exchange Name NYSE  
v3.26.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Aug. 31, 2026
May 31, 2026
Current assets:    
Cash and cash equivalents $ 36,369 $ 31,289
Marketable securities 708 605
Trade receivables, net of allowances for credit losses of $536 and $542 as of August 31, 2026 and May 31, 2026, respectively 11,394 10,385
Prepaid expenses and other current assets 7,159 4,288
Total current assets 55,630 46,567
Non-current assets:    
Property, plant and equipment, net 127,845 99,957
Operating lease right-of-use assets 33,967 29,690
Goodwill 62,267 62,261
Deferred tax assets 11,625 11,541
Other non-current assets 11,925 11,743
Total non-current assets 247,629 215,192
Total assets 303,259 261,759
Current liabilities:    
Notes payable and other borrowings, current 7,625 7,199
Accounts payable 11,063 10,977
Accrued compensation and related benefits 1,760 2,225
Deferred revenues 14,686 9,916
Other current liabilities 12,380 11,447
Total current liabilities 47,514 41,764
Non-current liabilities:    
Notes payable and other borrowings, non-current 117,712 122,342
Income taxes payable 12,060 11,771
Operating lease liabilities 30,594 26,648
Other non-current liabilities 28,183 16,178
Total non-current liabilities 188,549 176,939
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 each of August 31, 2026 and May 31, 2026, of 6.50% Series D Mandatory Convertible Preferred Stock 4,954 4,954
Common stock, $0.01 par value and additional paid in capital - authorized: 11,000 shares; outstanding: 3,024 shares and 2,880 shares as of August 31, 2026 and May 31, 2026, respectively 64,319 43,243
Accumulated deficit (1,114) (4,309)
Accumulated other comprehensive loss (1,387) (1,380)
Total Oracle Corporation stockholders' equity 66,772 42,508
Noncontrolling interests 424 548
Total stockholders' equity 67,196 43,056
Total liabilities and stockholders' equity $ 303,259 $ 261,759
v3.26.1
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - USD ($)
shares in Thousands, $ in Millions
 3 Months Ended 12 Months Ended
Aug. 31, 2026
May 31, 2026
Allowance for credit losses $ 536 $ 542
Preferred stock par value per share $ 0.01 $ 0.01
Preferred stock shares authorized 1,000 1,000
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 3,024,000 2,880,000
6.50% Series D Mandatory Convertible Preferred Stock [Member]    
Preferred stock shares outstanding 50 50
Preferred Stock, Dividend Rate, Percentage 6.50% 6.50%
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
Revenues:    
Cloud $ 11,607 $ 7,186
Software 5,550 5,721
Hardware 774 670
Services 1,414 1,349
Total revenues 19,345 14,926
Operating expenses:    
Cloud and software [1] 6,400 3,607
Hardware [1] 281 178
Services [1] 1,052 1,099
Sales and marketing 1,811 2,063
Research and development 2,401 2,491
General and administrative 376 376
Amortization of intangible assets 202 420
Restructuring and other 94 415
Total operating expenses 12,617 10,649
Operating income 6,728 4,277
Interest expense (1,428) (923)
Non-operating income, net 307 73
Income before income taxes 5,607 3,427
Provision for income taxes 847 500
Net income 4,760 2,927
Preferred stock dividends 81 0
Net income available to common shareholders, Basic 4,679 2,927
Net income available to common shareholders, Diluted $ 4,679 $ 2,927
Earnings per share attributable to common shareholders:    
Basic $ 1.58 $ 1.04
Diluted $ 1.56 $ 1.01
Weighted average common shares outstanding:    
Basic 2,966 2,826
Diluted 3,000 2,909
[1] Exclusive of amortization of intangible assets, which is shown separately.
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
Statement of Comprehensive Income [Abstract]    
Net Income (Loss) $ 4,760 $ 2,927
Other comprehensive (loss) income, net of tax:    
Net foreign currency translation (losses) gains (7) 28
Net unrealized gains (losses) on cash flow hedges 2 (24)
Other, net (2) 1
Total other comprehensive (loss) income, net (7) 5
Comprehensive income $ 4,753 $ 2,932
v3.26.1
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, 2025   $ 0 $ 37,107 $ (15,481) $ (657)
Common stock issued via at-the-market program     0    
Net share issuances from employee stock programs     1,153    
Stock-based compensation     1,124    
Repurchases of common stock $ (93)   (6) (87)  
Preferred stock dividends       0  
Common stock dividends       (1,413)  
Net income       2,927  
Other, net     0   (1)
Balance, end of period at Aug. 31, 2025 $ 24,666 0 39,378 (14,054) (658)
Preferred stock dividends declared per share $ 0        
Cash dividends declared per common share $ 0.5        
Balance, beginning of period at May. 31, 2026 $ 43,056 4,954 43,243 (4,309) (832)
Common stock issued via at-the-market program     19,909    
Net share issuances from employee stock programs     41    
Stock-based compensation     1,127    
Repurchases of common stock     0 0  
Preferred stock dividends       (81)  
Common stock dividends       (1,484)  
Net income       4,760  
Other, net     (1)   (131)
Balance, end of period at Aug. 31, 2026 $ 67,196 $ 4,954 $ 64,319 $ (1,114) $ (963)
Preferred stock dividends declared per share $ 1,625        
Cash dividends declared per common share $ 0.5        
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
Cash flows from operating activities:    
Net Income (Loss) $ 4,760 $ 2,927
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 3,156 1,351
Amortization of intangible assets 202 420
Deferred income taxes (73) 515
Stock-based compensation 1,127 1,124
Other, net (4) 164
Changes in operating assets and liabilities:    
Increase in trade receivables, net (1,009) (245)
Decrease in prepaid expenses and other assets 114 59
Decrease in accounts payable and other liabilities (1,076) (334)
Increase (decrease) in income taxes payable 546 (391)
Increase in deferred revenues from customer prepayments with significant financing component 11,363 0
Increase in other deferred revenues 3,997 2,550
Net cash provided by operating activities 23,103 8,140
Cash flows from investing activities:    
Purchases of marketable securities and other investments (306) (471)
Proceeds from sales and maturities of marketable securities and other investments 225 255
Capital expenditures (28,499) (8,502)
Net cash used for investing activities (28,580) (8,718)
Cash flows from financing activities:    
Proceeds from issuances of common stock via at-the-market program, net of issuance costs 19,909 0
Net proceeds from employee stock programs 41 1,153
Payments of dividends to stockholders (1,565) (1,413)
Repayments of commercial paper, net 0 (238)
(Repayments of) proceeds from short-term financing related to capital expenditures, net (830) 1,958
Repayments of senior notes, term loan credit agreements and other borrowings (4,202) (1,052)
Other financing activities, net (242) (198)
Net cash provided by financing activities 13,111 210
Effect of exchange rate changes on cash, cash equivalents and restricted cash 11 27
Net increase (decrease) in cash, cash equivalents and restricted cash 7,645 (341)
Cash, cash equivalents and restricted cash at beginning of period 31,289 10,786
Cash, cash equivalents and restricted cash at end of period 38,934 10,445
Non-cash investing activities:    
Unpaid capital expenditures $ 6,247 $ 4,010
v3.26.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
Pay vs Performance Disclosure    
Net Income (Loss) $ 4,760 $ 2,927
v3.26.1
Insider Trading Arrangements
shares in Millions
 3 Months Ended
Aug. 31, 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 August 31, 2026, the following Section 16 officer adopted, modified or terminated a “Rule 10b5-1 trading arrangement” (as defined in Item 408 of Regulation S-K under Exchange Act):

•
Lawrence J. Ellison, our Executive Chair of the Board of Directors and Chief Technology Officer, adopted a new trading plan on June 22, 2026. Mr. Ellison’s plan is scheduled to terminate on October 24, 2026, subject to early termination for certain specified events set forth in the plan. The trading plan is intended to permit Mr. Ellison to sell up to 50 million shares of Oracle common stock.

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.
Lawrence J. Ellison  
Trading Arrangements, by Individual  
Name Lawrence J. Ellison
Title Executive Chair of the Board of Directors and Chief Technology Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date June 22, 2026
Rule 10b5-1 Arrangement Terminated true
Termination Date October 24, 2026
Arrangement Duration 180 days
Aggregate Available 50
v3.26.1
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER
 3 Months Ended
Aug. 31, 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, 2026.

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, 2027. We reclassed certain prior period balances presented in our condensed consolidated financial statements to conform to the current period’s presentation. Such reclassifications did not affect total revenue, income from operations, net income, total assets or cash flows.

We believe that our current cash, cash equivalents and marketable securities balances, together with cash generated from operations and available financing arrangements, will be sufficient to meet our working capital, committed capital expenditures and contractual obligations for at least the next twelve months. Thereafter, we expect that our existing sources of liquidity, together with potential access to additional financing, will continue to be sufficient for the foreseeable future. Further, we have flexibility in managing the timing of certain discretionary capital expenditures.

In the first quarter of fiscal 2027, we adopted Accounting Standards Update (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) on a prospective basis effective June 1, 2026. ASU 2025-06 modernizes the accounting for internal-use software costs, including the criteria for capitalizing software development costs. The adoption did not have a material impact on our condensed consolidated financial statements. 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, 2026 that had a significant impact on our condensed consolidated financial statements or notes thereto as of and for the three months ended August 31, 2026.

Cash, Cash Equivalents and Restricted Cash

Restricted cash as of August 31, 2026 was $2.6 billion and was included within prepaid expenses and other current assets as presented within our condensed consolidated balance sheets. Restricted cash as of May 31, 2026 was immaterial.

Remaining Performance Obligations from Contracts with Customers

Trade receivables, net of allowances for credit losses, and deferred revenues are reported net of related uncollected deferred revenues in our condensed consolidated balance sheets as of August 31, 2026 and May 31, 2026. The revenues recognized during the three months ended August 31, 2026 and 2025 that were included in the opening deferred revenues balances as of May 31, 2026 and 2025 were approximately $4.0 billion during each period. Revenues recognized from performance obligations satisfied in prior periods and impairment losses recognized on our receivables were immaterial in each of the three months ended August 31, 2026 and 2025.

Remaining performance obligations were $664 billion as of August 31, 2026, of which we expect to recognize approximately 13% as revenues over the next twelve months, 37% over the subsequent month 13 to month 36, 34% 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, 2026 for more information about our remaining performance obligations.

Customer Prepayments and Sales of Financing Receivables

Certain of our customer contracts include a significant financing component either because the customer has made significant prepayments before the corresponding performance obligations are delivered or because we have provided long-term payment plans to the customer. In determining whether a contract contains a significant financing component, we consider: (1) the expected timing between the transfer of goods and services and customer payment; (2) the difference between the promised consideration and the cash selling price; and (3) prevailing market interest rates. We apply the practical expedient and do not adjust the promised amount of consideration for the effects of a significant financing component when the period between the transfer of goods or services and customer payment is one year or less. During the first quarter of fiscal 2027, we received $11.4 billion of prepayments from customers that included a significant financing component. No prepayments from customers that included a significant financing component were received during the first quarter of fiscal 2026. We recognize interest expense related to significant financing components separately from revenue. During the first quarter of fiscal 2027, such amounts were immaterial. We determine the discount rate based on a rate that reflects the credit characteristics of the party receiving financing, which is generally consistent with our incremental borrowing rate. The effects of significant financing components are reflected in deferred revenues and recognized over the period of performance.

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 $652 million and $756 million for the three months ended August 31, 2026 and 2025, respectively.

Non-Marketable Investments

Our non-marketable equity securities and debt investments totaled $2.4 billion and $2.3 billion as of August 31, 2026 and May 31, 2026, 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 are adjusted for observable price changes from orderly transactions. The substantial majority of the non-marketable investments we held as of August 31, 2026 were with TikTok USDS Joint Venture LLC, an equity method investee in which we have an ownership interest of 15%.

Non-Operating Income, net

Non-operating income, 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 gains and losses related to marketable and non-marketable investments, including net gains and losses attributable to equity method investments 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
August 31,

 

(in millions)

 

2026

 

 

2025

 

Interest income

 

$

306

 

 

$

103

 

Foreign currency losses, net

 

 

(16

)

 

 

(31

)

Noncontrolling interests in income

 

 

(53

)

 

 

(47

)

Gains (losses) from marketable and non-marketable investments, net

 

 

53

 

 

 

(52

)

Other income, net

 

 

17

 

 

 

100

 

Total non-operating income, net

 

$

307

 

 

$

73

 

 

Recent Accounting Pronouncements

Income Statement: In November 2024, the Financial Accounting Standards Board (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.
v3.26.1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Aug. 31, 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):

 

 

 

August 31, 2026

 

 

May 31, 2026

 

 

 

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

 

$

28,204

 

 

$

—

 

 

$

28,204

 

 

$

23,387

 

 

$

—

 

 

$

23,387

 

Time deposits and other

 

 

85

 

 

 

759

 

 

 

844

 

 

 

68

 

 

 

671

 

 

 

739

 

Derivative financial instruments

 

 

—

 

 

 

38

 

 

 

38

 

 

 

—

 

 

 

36

 

 

 

36

 

Total assets

 

$

28,289

 

 

$

797

 

 

$

29,086

 

 

$

23,455

 

 

$

707

 

 

$

24,162

 

 

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 August 31, 2026 and May 31, 2026, 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 $125.0 billion and $128.1 billion of senior notes and other long-term borrowings and the related fair value hedges, if any, that we had outstanding as of August 31, 2026 and May 31, 2026, 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 August 31, 2026 and May 31, 2026 were $105.7 billion and $114.4 billion, respectively.
v3.26.1
PROPERTY, PLANT AND EQUIPMENT
 3 Months Ended
Aug. 31, 2026
Property, Plant, and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT
3.
PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment, net consisted of the following:

(Dollars in millions)

 

Estimated
Useful Life

 

August 31,
2026

 

 

May 31,
2026

 

Computer, network, machinery and equipment

 

1-6 years(1)

 

$

77,755

 

 

$

59,634

 

Buildings and improvements

 

1-40 years

 

 

25,539

 

 

 

21,263

 

Furniture, fixtures and other

 

5-15 years

 

 

427

 

 

 

452

 

Land

 

—

 

 

1,329

 

 

 

1,329

 

Construction in progress(2)

 

—

 

 

48,546

 

 

 

39,973

 

Total property, plant and equipment

 

1-40 years

 

 

153,596

 

 

 

122,651

 

Accumulated depreciation

 

 

 

 

(25,751

)

 

 

(22,694

)

Total property, plant and equipment, net

 

 

 

$

127,845

 

 

$

99,957

 

 

(1)
Comprised primarily of servers and networking equipment with estimated useful life of six years.
(2)
Comprised primarily of servers, networking equipment and leasehold improvements to be deployed at our data centers.

Depreciation expenses on property, plant and equipment during the three months ended August 31, 2026 and 2025 were $3.2 billion and $1.4 billion, respectively. Property, plant and equipment, net includes right-of-use (ROU) assets recorded in connection with lease arrangements that are accounted for as finance leases, totaling $8.9 billion and $7.5 billion as of August 31, 2026 and May 31, 2026, respectively.
v3.26.1
RESTRUCTURING AND OTHER EXPENSES
 3 Months Ended
Aug. 31, 2026
Restructuring and Related Activities [Abstract]  
RESTRUCTURING AND OTHER EXPENSES
4.
RESTRUCTURING AND OTHER EXPENSES

The restructuring and other expenses line item on our condensed consolidated statement of operations consist of restructuring expenses for employee severance costs, contract termination costs and certain other exit costs to improve our cost structure prospectively. The restructuring expenses resulted from the execution of management-approved restructuring plans that were developed for certain strategic initiatives and/or to improve operational efficiencies, as further described below; and other operating expenses, net.

 

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Restructuring

 

$

165

 

 

$

402

 

Other, net

 

 

(71

)

 

 

13

 

Total restructuring and other expenses

 

$

94

 

 

$

415

 

Fiscal 2026 Oracle Restructuring Plan

During fiscal 2026, our management approved, committed to, initiated and further supplemented plans to restructure to implement certain strategic measures and further improve operational efficiencies, including through the adoption and integration of artificial intelligence technologies across certain functions and other operational activities (2026 Restructuring Plan). The total estimated restructuring costs associated with the 2026 Restructuring Plan are up to $2.1 billion as of August 31, 2026. Subsequent to August 31, 2026, our management supplemented the 2026 Restructuring Plan by approximately $700 million to reflect additional actions that we expect to take. These costs will be recorded to the restructuring and other expense line item within our condensed consolidated statements of operations through the end of the plan. We recorded $167 million and $415 million of restructuring expenses in connection with the 2026 Restructuring Plan for the three months ended August 31, 2026 and 2025, 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

 

 

Three Months Ended August 31, 2026

 

 

Accrued

 

 

Total
Costs

 

 

Total
Expected

 

(in millions)

 

May 31,
2026(2)

 

 

Initial
Costs(3)

 

 

Adj. to
Cost(4)

 

 

Cash
Payments

 

 

Others(5)

 

 

August 31,
2026(2)

 

 

Accrued
to Date

 

 

Program
Costs

 

2026 Restructuring Plan(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud and software

 

$

219

 

 

$

69

 

 

$

1

 

 

$

(120

)

 

$

—

 

 

$

169

 

 

$

729

 

 

$

776

 

Hardware

 

 

29

 

 

 

10

 

 

 

—

 

 

 

(15

)

 

 

—

 

 

 

24

 

 

 

88

 

 

 

93

 

Services

 

 

149

 

 

 

30

 

 

 

(1

)

 

 

(75

)

 

 

—

 

 

 

103

 

 

 

336

 

 

 

399

 

Other

 

 

170

 

 

 

52

 

 

 

6

 

 

 

(114

)

 

 

—

 

 

 

114

 

 

 

818

 

 

 

835

 

Total 2026 Restructuring Plan

 

$

567

 

 

$

161

 

 

$

6

 

 

$

(324

)

 

$

—

 

 

$

410

 

 

$

1,971

 

 

$

2,103

 

Total other restructuring plans(6)

 

$

86

 

 

$

—

 

 

$

(2

)

 

$

(6

)

 

$

1

 

 

$

79

 

 

 

 

 

 

 

Total restructuring plans

 

$

653

 

 

$

161

 

 

$

4

 

 

$

(330

)

 

$

1

 

 

$

489

 

 

 

 

 

 

 

 

(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)
The balances as of August 31, 2026 and May 31, 2026 included $422 million and $581 million, respectively, recorded in other current liabilities, and $67 million and $72 million, respectively, recorded in other non-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.
v3.26.1
DEFERRED REVENUES
 3 Months Ended
Aug. 31, 2026
Deferred Revenue Disclosure [Abstract]  
DEFERRED REVENUES
5.
DEFERRED REVENUES

Deferred revenues consisted of the following:

 

(in millions)

 

August 31,
2026

 

 

May 31,
2026

 

Cloud

 

$

6,348

 

 

$

3,228

 

Software

 

 

7,284

 

 

 

5,662

 

Hardware

 

 

577

 

 

 

521

 

Services

 

 

477

 

 

 

505

 

Deferred revenues, current

 

 

14,686

 

 

 

9,916

 

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

 

 

16,103

 

 

 

5,479

 

Total deferred revenues

 

$

30,789

 

 

$

15,395

 

 

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.
v3.26.1
LEASES AND OTHER COMMITMENTS
 3 Months Ended
Aug. 31, 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
August 31,

 

(in millions)

 

2026

 

 

2025

 

Operating lease expense

 

$

1,101

 

 

$

575

 

Finance lease expense:

 

 

 

 

 

 

Amortization of ROU assets

 

$

149

 

 

$

59

 

Interest on lease liabilities

 

 

126

 

 

 

48

 

Total finance lease expense

 

$

275

 

 

$

107

 

Supplemental balance sheet information related to leases was as follows:

 

(in millions)

 

August 31,
2026

 

 

May 31,
2026

 

Operating leases:

 

 

 

 

 

 

Operating lease ROU assets

 

$

33,967

 

 

$

29,690

 

Operating lease liabilities:

 

 

 

 

 

 

Operating lease liabilities, current

 

$

4,027

 

 

$

3,542

 

Operating lease liabilities, non-current

 

 

30,594

 

 

 

26,648

 

Total operating lease liabilities

 

$

34,621

 

 

$

30,190

 

Finance leases:

 

 

 

 

 

 

Finance lease ROU assets

 

$

8,856

 

 

$

7,464

 

Finance lease liabilities:

 

 

 

 

 

 

Finance lease liabilities, current

 

$

749

 

 

$

620

 

Finance lease liabilities, non-current

 

 

8,436

 

 

 

7,081

 

Total finance lease liabilities

 

$

9,185

 

 

$

7,701

 

Supplemental cash flow information related to leases was as follows:

 

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

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

 

 

 

 

 

 

Operating leases

 

$

950

 

 

$

567

 

Finance leases

 

$

186

 

 

$

86

 

ROU assets obtained in exchange for lease obligations:

 

 

 

 

 

 

Operating leases

 

$

4,903

 

 

$

3,181

 

Finance leases

 

$

1,539

 

 

$

1,122

 

 

Maturities of lease liabilities were as follows as of August 31, 2026 (in millions):

 

 

Operating
Leases

 

 

Finance
Leases

 

Remainder of fiscal 2027

 

$

3,219

 

 

$

620

 

Fiscal 2028

 

 

4,135

 

 

 

852

 

Fiscal 2029

 

 

4,097

 

 

 

923

 

Fiscal 2030

 

 

4,109

 

 

 

947

 

Fiscal 2031

 

 

4,089

 

 

 

971

 

Fiscal 2032

 

 

4,030

 

 

 

996

 

Thereafter

 

 

24,371

 

 

 

9,886

 

Total lease payments

 

 

48,050

 

 

 

15,195

 

Less: imputed interest

 

 

(13,429

)

 

 

(6,010

)

Total lease liability

 

$

34,621

 

 

$

9,185

 

As of August 31, 2026, we had $288 billion of additional lease commitments, substantially all related to data center arrangements, that are generally expected to commence between the second quarter of fiscal 2027 and fiscal 2029 and for terms of fifteen to nineteen years that were not reflected on our condensed consolidated balance sheets as of August 31, 2026 or in the maturities table above.

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 August 31, 2026, our unconditional purchase and certain other obligations with terms of one year or greater, which were primarily related to long-term supply arrangements for purchasing components for cloud infrastructure assets and power supply arrangements for data centers, were as follows (in millions):

Remainder of fiscal 2027

 

$

5,449

 

Fiscal 2028

 

 

6,176

 

Fiscal 2029

 

 

3,863

 

Fiscal 2030

 

 

4,318

 

Fiscal 2031

 

 

6,768

 

Fiscal 2032

 

 

954

 

Thereafter

 

 

6,622

 

Total

 

$

34,150

 
v3.26.1
STOCKHOLDERS' EQUITY
 3 Months Ended
Aug. 31, 2026
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY
7.
STOCKHOLDERS’ EQUITY

Common Stock

On February 2, 2026, we entered into an equity distribution agreement with certain sales agents party thereto, as amended on June 23, 2026, 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).

During the first quarter ended August 31, 2026, we fully utilized the ATM Program and issued 141 million shares of common stock under the ATM Program for net proceeds of $19.9 billion. The proceeds from offerings under the ATM Program 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.

Common Stock Repurchases

Our Board of Directors (the Board) has approved a program for us to repurchase shares of our common stock. As of August 31, 2026, approximately $6.3 billion remained available for stock repurchases pursuant to our stock repurchase program. There was no stock repurchase activity for the three months ended August 31, 2026. We repurchased 0.4 million shares for $93 million during the three months ended August 31, 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 September 2026, the Board declared a quarterly cash dividend of $1,625 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 October 15, 2026 to stockholders of record as of the close of business on October 1, 2026 and the common stock dividend is payable on October 23, 2026 to stockholders of record as of the close of business on October 9, 2026. Future declarations of dividends on Oracle securities and the establishment of future record and payment dates for our common stock are subject to the final determination of the Board.

Fiscal 2027 Stock‑Based Awards Activity and Compensation Expense

During the first quarter of fiscal 2027, we issued 2 million restricted stock-based units (RSUs) and stock options (SOs) for approximately 400,000 shares of common stock, all of which are subject to service-based vesting restrictions. These fiscal 2027 stock-based award issuances were offset by stock-based award forfeitures and cancellations of 4 million shares during the first quarter of fiscal 2027.

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 over four years of service, and generally expire ten years from the date of grant. We estimated the fair values of our SOs 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 three months ended August 31, 2026 generally vest 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, 2026.

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

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Cloud and software

 

$

134

 

 

$

156

 

Hardware

 

 

6

 

 

 

7

 

Services

 

 

51

 

 

 

49

 

Sales and marketing

 

 

171

 

 

 

177

 

Research and development

 

 

667

 

 

 

647

 

General and administrative

 

 

98

 

 

 

88

 

Total stock-based compensation

 

$

1,127

 

 

$

1,124

 
v3.26.1
INCOME TAXES
 3 Months Ended
Aug. 31, 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 15.1% and 14.6% for the three months ended August 31, 2026 and 2025, respectively.

Our net deferred tax assets were $11.3 billion and $11.2 billion as of August 31, 2026 and May 31, 2026, 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 2025. 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 2025. 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, Ireland, Israel, 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.
v3.26.1
SEGMENT INFORMATION
 3 Months Ended
Aug. 31, 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.

We have three businesses: (1) cloud and software, (2) hardware and (3) services—each of which is comprised of a single operating segment. The tabular information below presents financial information, including information on segment revenues and significant segment expenses included within each segment’s measure of 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.

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. Cloud revenues are generated from applications and infrastructure offerings that are typically contracted with customers directly, 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 and include our consulting services and customer success services offerings. 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
August 31,

 

(in millions)

 

2026

 

 

2025

 

Cloud and software:

 

 

 

 

 

 

Revenues

 

$

17,157

 

 

$

12,907

 

Cloud and software expenses

 

 

6,235

 

 

 

3,418

 

Sales and marketing expenses

 

 

1,564

 

 

 

1,798

 

Margin(1)

 

$

9,358

 

 

$

7,691

 

Hardware:

 

 

 

 

 

 

Revenues

 

$

774

 

 

$

670

 

Hardware expenses

 

 

272

 

 

 

169

 

Sales and marketing expenses

 

 

50

 

 

 

54

 

Margin(1)

 

$

452

 

 

$

447

 

Services:

 

 

 

 

 

 

Revenues

 

$

1,414

 

 

$

1,349

 

Services expenses

 

 

969

 

 

 

1,017

 

Margin(1)

 

$

445

 

 

$

332

 

Totals:

 

 

 

 

 

 

Revenues

 

$

19,345

 

 

$

14,926

 

Expenses

 

 

9,090

 

 

 

6,456

 

Margin(1)

 

$

10,255

 

 

$

8,470

 

 

(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, restructuring and other expenses, stock-based compensation, interest expense or certain other non-operating income, 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
August 31,

 

(in millions)

 

2026

 

 

2025

 

Total margin for operating segments

 

$

10,255

 

 

$

8,470

 

Research and development

 

 

(2,401

)

 

 

(2,491

)

General and administrative

 

 

(376

)

 

 

(376

)

Amortization of intangible assets

 

 

(202

)

 

 

(420

)

Restructuring and other

 

 

(94

)

 

 

(415

)

Stock-based compensation for operating segments

 

 

(362

)

 

 

(389

)

Expense allocations and other, net

 

 

(92

)

 

 

(102

)

Interest expense

 

 

(1,428

)

 

 

(923

)

Non-operating income, net

 

 

307

 

 

 

73

 

Income before income taxes

 

$

5,607

 

 

$

3,427

 

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 presents a summary of our total revenues by geographic region, which are generally based on the location of our customers:

 

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Americas

 

$

13,711

 

 

$

9,662

 

EMEA(1)

 

 

3,726

 

 

 

3,481

 

Asia Pacific

 

 

1,908

 

 

 

1,783

 

Total revenues

 

$

19,345

 

 

$

14,926

 

 

(1)
Comprises Europe, the Middle East and Africa

The following table presents our cloud revenues by offerings:

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Cloud applications

 

$

4,219

 

 

$

3,839

 

Cloud infrastructure

 

 

7,388

 

 

 

3,347

 

Total cloud revenues

 

$

11,607

 

 

$

7,186

 

 

The following table presents our software revenues by offerings:

 

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Software license

 

$

655

 

 

$

766

 

Software support

 

 

4,895

 

 

 

4,955

 

Total software revenues

 

$

5,550

 

 

$

5,721

 
v3.26.1
EARNINGS PER SHARE
 3 Months Ended
Aug. 31, 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
August 31,

 

(in millions, except per share data)

 

2026

 

 

2025

 

Net income

 

$

4,760

 

 

$

2,927

 

Preferred stock dividends

 

 

81

 

 

 

—

 

Net income available to common shareholders

 

$

4,679

 

 

$

2,927

 

Weighted-average common shares outstanding

 

 

2,966

 

 

 

2,826

 

Dilutive effect of employee stock plans

 

 

34

 

 

 

83

 

Dilutive weighted-average common shares outstanding

 

 

3,000

 

 

 

2,909

 

Basic earnings per share attributable to common shareholders

 

$

1.58

 

 

$

1.04

 

Diluted earnings per share attributable to common shareholders

 

$

1.56

 

 

$

1.01

 

Stock awards and shares excluded from calculation(1)

 

 

64

 

 

 

2

 

 

(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 performance-based stock option arrangements as the performance conditions were not yet met. These excluded stock awards and shares could be dilutive in the future.
v3.26.1
LEGAL PROCEEDINGS
 3 Months Ended
Aug. 31, 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. The Court of Appeal granted Oracle’s request for an interim appeal to the Supreme Court, and on July 17, 2026, the Supreme Court found that the Court of Appeal had applied the wrong standard for evaluating a class action and remanded the case to the Court of Appeal for further proceedings. On July 27, 2026, Oracle filed and served a Writ of Summons to the Court of Appeal with the first court date being on August 4, 2026 and a submission following referral by the Supreme Court due on September 15, 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, and on July 14, 2026, the plaintiff filed an amended class action complaint against us, our Chief Technology Officer, one of our Chief Executive Officers, two other Oracle executives, and one member of the Board. The plaintiff seeks to represent a class of Oracle stockholders, alleging that the 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, equitable relief, and attorneys’ fees and costs. The defendants must respond to the amended complaint by September 16, 2026. If the defendants move to dismiss the amended complaint, that motion will be fully briefed by December 18, 2026.

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.
v3.26.1
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER (Policies)
 3 Months Ended
Aug. 31, 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, 2026.

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, 2027. We reclassed certain prior period balances presented in our condensed consolidated financial statements to conform to the current period’s presentation. Such reclassifications did not affect total revenue, income from operations, net income, total assets or cash flows.

We believe that our current cash, cash equivalents and marketable securities balances, together with cash generated from operations and available financing arrangements, will be sufficient to meet our working capital, committed capital expenditures and contractual obligations for at least the next twelve months. Thereafter, we expect that our existing sources of liquidity, together with potential access to additional financing, will continue to be sufficient for the foreseeable future. Further, we have flexibility in managing the timing of certain discretionary capital expenditures.

In the first quarter of fiscal 2027, we adopted Accounting Standards Update (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) on a prospective basis effective June 1, 2026. ASU 2025-06 modernizes the accounting for internal-use software costs, including the criteria for capitalizing software development costs. The adoption did not have a material impact on our condensed consolidated financial statements. 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, 2026 that had a significant impact on our condensed consolidated financial statements or notes thereto as of and for the three months ended August 31, 2026.
Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash

Restricted cash as of August 31, 2026 was $2.6 billion and was included within prepaid expenses and other current assets as presented within our condensed consolidated balance sheets. Restricted cash as of May 31, 2026 was immaterial.
Remaining Performance Obligations from Contracts with Customers

Remaining Performance Obligations from Contracts with Customers

Trade receivables, net of allowances for credit losses, and deferred revenues are reported net of related uncollected deferred revenues in our condensed consolidated balance sheets as of August 31, 2026 and May 31, 2026. The revenues recognized during the three months ended August 31, 2026 and 2025 that were included in the opening deferred revenues balances as of May 31, 2026 and 2025 were approximately $4.0 billion during each period. Revenues recognized from performance obligations satisfied in prior periods and impairment losses recognized on our receivables were immaterial in each of the three months ended August 31, 2026 and 2025.

Remaining performance obligations were $664 billion as of August 31, 2026, of which we expect to recognize approximately 13% as revenues over the next twelve months, 37% over the subsequent month 13 to month 36, 34% 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, 2026 for more information about our remaining performance obligations.
Customer Prepayments and Sales of Financing Receivables

Customer Prepayments and Sales of Financing Receivables

Certain of our customer contracts include a significant financing component either because the customer has made significant prepayments before the corresponding performance obligations are delivered or because we have provided long-term payment plans to the customer. In determining whether a contract contains a significant financing component, we consider: (1) the expected timing between the transfer of goods and services and customer payment; (2) the difference between the promised consideration and the cash selling price; and (3) prevailing market interest rates. We apply the practical expedient and do not adjust the promised amount of consideration for the effects of a significant financing component when the period between the transfer of goods or services and customer payment is one year or less. During the first quarter of fiscal 2027, we received $11.4 billion of prepayments from customers that included a significant financing component. No prepayments from customers that included a significant financing component were received during the first quarter of fiscal 2026. We recognize interest expense related to significant financing components separately from revenue. During the first quarter of fiscal 2027, such amounts were immaterial. We determine the discount rate based on a rate that reflects the credit characteristics of the party receiving financing, which is generally consistent with our incremental borrowing rate. The effects of significant financing components are reflected in deferred revenues and recognized over the period of performance.

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 $652 million and $756 million for the three months ended August 31, 2026 and 2025, respectively.
Non-Marketable Investments

Non-Marketable Investments

Our non-marketable equity securities and debt investments totaled $2.4 billion and $2.3 billion as of August 31, 2026 and May 31, 2026, 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 are adjusted for observable price changes from orderly transactions. The substantial majority of the non-marketable investments we held as of August 31, 2026 were with TikTok USDS Joint Venture LLC, an equity method investee in which we have an ownership interest of 15%.
Non-Operating Income, net

Non-Operating Income, net

Non-operating income, 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 gains and losses related to marketable and non-marketable investments, including net gains and losses attributable to equity method investments 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
August 31,

 

(in millions)

 

2026

 

 

2025

 

Interest income

 

$

306

 

 

$

103

 

Foreign currency losses, net

 

 

(16

)

 

 

(31

)

Noncontrolling interests in income

 

 

(53

)

 

 

(47

)

Gains (losses) from marketable and non-marketable investments, net

 

 

53

 

 

 

(52

)

Other income, net

 

 

17

 

 

 

100

 

Total non-operating income, net

 

$

307

 

 

$

73

 
Recent Accounting Pronouncements

Recent Accounting Pronouncements

Income Statement: In November 2024, the Financial Accounting Standards Board (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.
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.

We have three businesses: (1) cloud and software, (2) hardware and (3) services—each of which is comprised of a single operating segment. The tabular information below presents financial information, including information on segment revenues and significant segment expenses included within each segment’s measure of 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.

v3.26.1
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER (Tables)
 3 Months Ended
Aug. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Non-Operating Income (Expenses), net

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Interest income

 

$

306

 

 

$

103

 

Foreign currency losses, net

 

 

(16

)

 

 

(31

)

Noncontrolling interests in income

 

 

(53

)

 

 

(47

)

Gains (losses) from marketable and non-marketable investments, net

 

 

53

 

 

 

(52

)

Other income, net

 

 

17

 

 

 

100

 

Total non-operating income, net

 

$

307

 

 

$

73

 
v3.26.1
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Aug. 31, 2026
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis

 

 

August 31, 2026

 

 

May 31, 2026

 

 

 

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

 

$

28,204

 

 

$

—

 

 

$

28,204

 

 

$

23,387

 

 

$

—

 

 

$

23,387

 

Time deposits and other

 

 

85

 

 

 

759

 

 

 

844

 

 

 

68

 

 

 

671

 

 

 

739

 

Derivative financial instruments

 

 

—

 

 

 

38

 

 

 

38

 

 

 

—

 

 

 

36

 

 

 

36

 

Total assets

 

$

28,289

 

 

$

797

 

 

$

29,086

 

 

$

23,455

 

 

$

707

 

 

$

24,162

 
v3.26.1
PROPERTY, PLANT AND EQUIPMENT (Tables)
 3 Months Ended
Aug. 31, 2026
Property, Plant, and Equipment [Abstract]  
Schedule of Property, plant and equipment

Property, plant and equipment, net consisted of the following:

(Dollars in millions)

 

Estimated
Useful Life

 

August 31,
2026

 

 

May 31,
2026

 

Computer, network, machinery and equipment

 

1-6 years(1)

 

$

77,755

 

 

$

59,634

 

Buildings and improvements

 

1-40 years

 

 

25,539

 

 

 

21,263

 

Furniture, fixtures and other

 

5-15 years

 

 

427

 

 

 

452

 

Land

 

—

 

 

1,329

 

 

 

1,329

 

Construction in progress(2)

 

—

 

 

48,546

 

 

 

39,973

 

Total property, plant and equipment

 

1-40 years

 

 

153,596

 

 

 

122,651

 

Accumulated depreciation

 

 

 

 

(25,751

)

 

 

(22,694

)

Total property, plant and equipment, net

 

 

 

$

127,845

 

 

$

99,957

 

 

(1)
Comprised primarily of servers and networking equipment with estimated useful life of six years.
(2)
Comprised primarily of servers, networking equipment and leasehold improvements to be deployed at our data centers.
v3.26.1
RESTRUCTURING AND OTHER EXPENSES (Tables)
 3 Months Ended
Aug. 31, 2026
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring and Other Expenses

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Restructuring

 

$

165

 

 

$

402

 

Other, net

 

 

(71

)

 

 

13

 

Total restructuring and other expenses

 

$

94

 

 

$

415

 
Summary of All Plans

 

 

Accrued

 

 

Three Months Ended August 31, 2026

 

 

Accrued

 

 

Total
Costs

 

 

Total
Expected

 

(in millions)

 

May 31,
2026(2)

 

 

Initial
Costs(3)

 

 

Adj. to
Cost(4)

 

 

Cash
Payments

 

 

Others(5)

 

 

August 31,
2026(2)

 

 

Accrued
to Date

 

 

Program
Costs

 

2026 Restructuring Plan(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud and software

 

$

219

 

 

$

69

 

 

$

1

 

 

$

(120

)

 

$

—

 

 

$

169

 

 

$

729

 

 

$

776

 

Hardware

 

 

29

 

 

 

10

 

 

 

—

 

 

 

(15

)

 

 

—

 

 

 

24

 

 

 

88

 

 

 

93

 

Services

 

 

149

 

 

 

30

 

 

 

(1

)

 

 

(75

)

 

 

—

 

 

 

103

 

 

 

336

 

 

 

399

 

Other

 

 

170

 

 

 

52

 

 

 

6

 

 

 

(114

)

 

 

—

 

 

 

114

 

 

 

818

 

 

 

835

 

Total 2026 Restructuring Plan

 

$

567

 

 

$

161

 

 

$

6

 

 

$

(324

)

 

$

—

 

 

$

410

 

 

$

1,971

 

 

$

2,103

 

Total other restructuring plans(6)

 

$

86

 

 

$

—

 

 

$

(2

)

 

$

(6

)

 

$

1

 

 

$

79

 

 

 

 

 

 

 

Total restructuring plans

 

$

653

 

 

$

161

 

 

$

4

 

 

$

(330

)

 

$

1

 

 

$

489

 

 

 

 

 

 

 

 

(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)
The balances as of August 31, 2026 and May 31, 2026 included $422 million and $581 million, respectively, recorded in other current liabilities, and $67 million and $72 million, respectively, recorded in other non-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.
v3.26.1
DEFERRED REVENUES (Tables)
 3 Months Ended
Aug. 31, 2026
Deferred Revenue Disclosure [Abstract]  
Deferred Revenues

Deferred revenues consisted of the following:

 

(in millions)

 

August 31,
2026

 

 

May 31,
2026

 

Cloud

 

$

6,348

 

 

$

3,228

 

Software

 

 

7,284

 

 

 

5,662

 

Hardware

 

 

577

 

 

 

521

 

Services

 

 

477

 

 

 

505

 

Deferred revenues, current

 

 

14,686

 

 

 

9,916

 

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

 

 

16,103

 

 

 

5,479

 

Total deferred revenues

 

$

30,789

 

 

$

15,395

 
v3.26.1
LEASES AND OTHER COMMITMENTS (Tables)
 3 Months Ended
Aug. 31, 2026
Leases [Abstract]  
Components of Lease Expense

The components of lease expense were as follows:

 

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Operating lease expense

 

$

1,101

 

 

$

575

 

Finance lease expense:

 

 

 

 

 

 

Amortization of ROU assets

 

$

149

 

 

$

59

 

Interest on lease liabilities

 

 

126

 

 

 

48

 

Total finance lease expense

 

$

275

 

 

$

107

 
Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases was as follows:

 

(in millions)

 

August 31,
2026

 

 

May 31,
2026

 

Operating leases:

 

 

 

 

 

 

Operating lease ROU assets

 

$

33,967

 

 

$

29,690

 

Operating lease liabilities:

 

 

 

 

 

 

Operating lease liabilities, current

 

$

4,027

 

 

$

3,542

 

Operating lease liabilities, non-current

 

 

30,594

 

 

 

26,648

 

Total operating lease liabilities

 

$

34,621

 

 

$

30,190

 

Finance leases:

 

 

 

 

 

 

Finance lease ROU assets

 

$

8,856

 

 

$

7,464

 

Finance lease liabilities:

 

 

 

 

 

 

Finance lease liabilities, current

 

$

749

 

 

$

620

 

Finance lease liabilities, non-current

 

 

8,436

 

 

 

7,081

 

Total finance lease liabilities

 

$

9,185

 

 

$

7,701

 
Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

 

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

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

 

 

 

 

 

 

Operating leases

 

$

950

 

 

$

567

 

Finance leases

 

$

186

 

 

$

86

 

ROU assets obtained in exchange for lease obligations:

 

 

 

 

 

 

Operating leases

 

$

4,903

 

 

$

3,181

 

Finance leases

 

$

1,539

 

 

$

1,122

 

 
Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities were as follows as of August 31, 2026 (in millions):

 

 

Operating
Leases

 

 

Finance
Leases

 

Remainder of fiscal 2027

 

$

3,219

 

 

$

620

 

Fiscal 2028

 

 

4,135

 

 

 

852

 

Fiscal 2029

 

 

4,097

 

 

 

923

 

Fiscal 2030

 

 

4,109

 

 

 

947

 

Fiscal 2031

 

 

4,089

 

 

 

971

 

Fiscal 2032

 

 

4,030

 

 

 

996

 

Thereafter

 

 

24,371

 

 

 

9,886

 

Total lease payments

 

 

48,050

 

 

 

15,195

 

Less: imputed interest

 

 

(13,429

)

 

 

(6,010

)

Total lease liability

 

$

34,621

 

 

$

9,185

 
Unconditional Purchase and Certain Other Obligations As of August 31, 2026, our unconditional purchase and certain other obligations with terms of one year or greater, which were primarily related to long-term supply arrangements for purchasing components for cloud infrastructure assets and power supply arrangements for data centers, were as follows (in millions):

Remainder of fiscal 2027

 

$

5,449

 

Fiscal 2028

 

 

6,176

 

Fiscal 2029

 

 

3,863

 

Fiscal 2030

 

 

4,318

 

Fiscal 2031

 

 

6,768

 

Fiscal 2032

 

 

954

 

Thereafter

 

 

6,622

 

Total

 

$

34,150

 
v3.26.1
STOCKHOLDERS' EQUITY (Tables)
 3 Months Ended
Aug. 31, 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
August 31,

 

(in millions)

 

2026

 

 

2025

 

Cloud and software

 

$

134

 

 

$

156

 

Hardware

 

 

6

 

 

 

7

 

Services

 

 

51

 

 

 

49

 

Sales and marketing

 

 

171

 

 

 

177

 

Research and development

 

 

667

 

 

 

647

 

General and administrative

 

 

98

 

 

 

88

 

Total stock-based compensation

 

$

1,127

 

 

$

1,124

 
v3.26.1
SEGMENT INFORMATION (Tables)
 3 Months Ended
Aug. 31, 2026
Segment Reporting [Abstract]  
Summary of Businesses Results

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

 

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Cloud and software:

 

 

 

 

 

 

Revenues

 

$

17,157

 

 

$

12,907

 

Cloud and software expenses

 

 

6,235

 

 

 

3,418

 

Sales and marketing expenses

 

 

1,564

 

 

 

1,798

 

Margin(1)

 

$

9,358

 

 

$

7,691

 

Hardware:

 

 

 

 

 

 

Revenues

 

$

774

 

 

$

670

 

Hardware expenses

 

 

272

 

 

 

169

 

Sales and marketing expenses

 

 

50

 

 

 

54

 

Margin(1)

 

$

452

 

 

$

447

 

Services:

 

 

 

 

 

 

Revenues

 

$

1,414

 

 

$

1,349

 

Services expenses

 

 

969

 

 

 

1,017

 

Margin(1)

 

$

445

 

 

$

332

 

Totals:

 

 

 

 

 

 

Revenues

 

$

19,345

 

 

$

14,926

 

Expenses

 

 

9,090

 

 

 

6,456

 

Margin(1)

 

$

10,255

 

 

$

8,470

 

 

(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, restructuring and other expenses, stock-based compensation, interest expense or certain other non-operating income, 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
August 31,

 

(in millions)

 

2026

 

 

2025

 

Total margin for operating segments

 

$

10,255

 

 

$

8,470

 

Research and development

 

 

(2,401

)

 

 

(2,491

)

General and administrative

 

 

(376

)

 

 

(376

)

Amortization of intangible assets

 

 

(202

)

 

 

(420

)

Restructuring and other

 

 

(94

)

 

 

(415

)

Stock-based compensation for operating segments

 

 

(362

)

 

 

(389

)

Expense allocations and other, net

 

 

(92

)

 

 

(102

)

Interest expense

 

 

(1,428

)

 

 

(923

)

Non-operating income, net

 

 

307

 

 

 

73

 

Income before income taxes

 

$

5,607

 

 

$

3,427

 
Disaggregation of Revenue by Geography

The following table presents a summary of our total revenues by geographic region, which are generally based on the location of our customers:

 

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Americas

 

$

13,711

 

 

$

9,662

 

EMEA(1)

 

 

3,726

 

 

 

3,481

 

Asia Pacific

 

 

1,908

 

 

 

1,783

 

Total revenues

 

$

19,345

 

 

$

14,926

 

 

(1)
Comprises Europe, the Middle East and Africa

The following table presents our cloud revenues by offerings:

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Cloud applications

 

$

4,219

 

 

$

3,839

 

Cloud infrastructure

 

 

7,388

 

 

 

3,347

 

Total cloud revenues

 

$

11,607

 

 

$

7,186

 

 

The following table presents our software revenues by offerings:

 

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Software license

 

$

655

 

 

$

766

 

Software support

 

 

4,895

 

 

 

4,955

 

Total software revenues

 

$

5,550

 

 

$

5,721

 
v3.26.1
EARNINGS PER SHARE (Tables)
 3 Months Ended
Aug. 31, 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
August 31,

 

(in millions, except per share data)

 

2026

 

 

2025

 

Net income

 

$

4,760

 

 

$

2,927

 

Preferred stock dividends

 

 

81

 

 

 

—

 

Net income available to common shareholders

 

$

4,679

 

 

$

2,927

 

Weighted-average common shares outstanding

 

 

2,966

 

 

 

2,826

 

Dilutive effect of employee stock plans

 

 

34

 

 

 

83

 

Dilutive weighted-average common shares outstanding

 

 

3,000

 

 

 

2,909

 

Basic earnings per share attributable to common shareholders

 

$

1.58

 

 

$

1.04

 

Diluted earnings per share attributable to common shareholders

 

$

1.56

 

 

$

1.01

 

Stock awards and shares excluded from calculation(1)

 

 

64

 

 

 

2

 

 

(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 performance-based stock option arrangements as the performance conditions were not yet met. These excluded stock awards and shares could be dilutive in the future.
v3.26.1
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER Narrative (Details) - USD ($)
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
Accounting Standards Update and Change in Accounting Principle [Abstract]    
Accounting Standards Update [Extensible Enumeration] us-gaap:AccountingStandardsUpdate202506Member  
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true  
Change in Accounting Principle, Accounting Standards Update, Adoption Date Jun. 01, 2026  
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] true  
Restricted cash $ 2,600,000,000  
Contract with Customer, Asset and Liability [Abstract]    
Revenues recognized included in opening deferred revenues balances 4,000,000,000 $ 4,000,000,000
Revenue, Performance Obligation [Abstract]    
Remaining performance obligation, amount 664,000,000,000  
Customer Prepayments and Sales of Financing Receivables [Abstract]    
Proceeds of prepayments from customers 11,400,000,000 0
Sales of financing receivables $ 652,000,000 $ 756,000,000
v3.26.1
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER Narrative (Details1)
Aug. 31, 2026
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-09-01  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Remaining performance obligation, percentage 13.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-09-01  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Remaining performance obligation, percentage 37.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2029-09-01  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Remaining performance obligation, percentage 34.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 2 years
v3.26.1
BASIS OF PRESENTATION, RECENT ACCOUNTING PRONOUNCEMENTS AND OTHER (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
May 31, 2026
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Non-marketable debt investments and equity securities and related instruments $ 2,400   $ 2,300
Non-Operating Income , net [Abstract]      
Interest income 306 $ 103  
Foreign currency losses, net (16) (31)  
Noncontrolling interests in income (53) (47)  
Gains (losses) from marketable and non-marketable investments, net 53 (52)  
Other income, net 17 100  
Total non-operating income, net $ 307 $ 73  
Tik Tok USDS Joint Venture LLC [Member]      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Ownership interest, percent 15.00%    
v3.26.1
FAIR VALUE MEASUREMENTS (Details) - USD ($)
$ in Millions
Aug. 31, 2026
May 31, 2026
Assets [Abstract]    
Derivative financial instruments $ 38 $ 36
Total assets 29,086 24,162
Money Market Funds [Member]    
Assets [Abstract]    
Investments and cash and cash equivalents 28,204 23,387
Time Deposits and Other [Member]    
Assets [Abstract]    
Investments and cash and cash equivalents 844 739
Fair Value Measurements Using Input Types Level 1 [Member]    
Assets [Abstract]    
Derivative financial instruments 0 0
Total assets 28,289 23,455
Fair Value Measurements Using Input Types Level 1 [Member] | Money Market Funds [Member]    
Assets [Abstract]    
Investments and cash and cash equivalents 28,204 23,387
Fair Value Measurements Using Input Types Level 1 [Member] | Time Deposits and Other [Member]    
Assets [Abstract]    
Investments and cash and cash equivalents 85 68
Fair Value Measurements Using Input Types Level 2 [Member]    
Assets [Abstract]    
Derivative financial instruments 38 36
Total assets 797 707
Fair Value Measurements Using Input Types Level 2 [Member] | Money Market Funds [Member]    
Assets [Abstract]    
Investments and cash and cash equivalents 0 0
Fair Value Measurements Using Input Types Level 2 [Member] | Time Deposits and Other [Member]    
Assets [Abstract]    
Investments and cash and cash equivalents $ 759 $ 671
v3.26.1
FAIR VALUE MEASUREMENTS Narrative (Details) - USD ($)
$ in Billions
Aug. 31, 2026
May 31, 2026
Senior Notes and Other Long Term Borrowings [Member]    
Marketable security investments maturity information [Abstract]    
Total debt, carrying value $ 125.0 $ 128.1
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 $ 105.7 $ 114.4
v3.26.1
PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, plant and equipment (Details) - USD ($)
$ in Millions
Aug. 31, 2026
May 31, 2026
Property, Plant, and Equipment [Line Items]    
Computer, network, machinery and equipment $ 77,755 $ 59,634
Buildings and improvements 25,539 21,263
Furniture, fixtures and other 427 452
Land 1,329 1,329
Construction in progress [1] 48,546 39,973
Total property, plant and equipment 153,596 122,651
Accumulated depreciation (25,751) (22,694)
Total property, plant and equipment, net $ 127,845 $ 99,957
Minimum    
Property, Plant, and Equipment [Line Items]    
Estimated Useful Lives 1 year  
Maximum    
Property, Plant, and Equipment [Line Items]    
Estimated Useful Lives 40 years  
Computer, network, machinery and equipment | Minimum    
Property, Plant, and Equipment [Line Items]    
Estimated Useful Lives [2] 1 year  
Computer, network, machinery and equipment | Maximum    
Property, Plant, and Equipment [Line Items]    
Estimated Useful Lives [2] 6 years  
Buildings and improvements | Minimum    
Property, Plant, and Equipment [Line Items]    
Estimated Useful Lives 1 year  
Buildings and improvements | Maximum    
Property, Plant, and Equipment [Line Items]    
Estimated Useful Lives 40 years  
Furniture, fixtures and other | Minimum    
Property, Plant, and Equipment [Line Items]    
Estimated Useful Lives 5 years  
Furniture, fixtures and other | Maximum    
Property, Plant, and Equipment [Line Items]    
Estimated Useful Lives 15 years  
[1] Comprised primarily of servers, networking equipment and leasehold improvements to be deployed at our data centers
[2] Comprised primarily of servers and networking equipment with estimated useful life of six years
v3.26.1
PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, plant and equipment (Parenthetical) (Details)
Aug. 31, 2026
Servers and networking equipment  
Property, Plant, and Equipment [Line Items]  
Estimated Useful Lives 6 years
v3.26.1
PROPERTY, PLANT AND EQUIPMENT Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
May 31, 2026
Property, Plant, and Equipment [Abstract]      
Depreciation expense on property, plant and equipment $ 3,156 $ 1,351  
Finance lease ROU assets $ 8,856   $ 7,464
v3.26.1
RESTRUCTURING AND OTHER EXPENSES - Schedule of Restructuring and Other Expenses (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
Restructuring and Related Activities [Abstract]    
Restructuring $ 165 $ 402
Other, net (71) 13
Total restructuring and other expenses $ 94 $ 415
v3.26.1
RESTRUCTURING AND OTHER EXPENSES Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
Sep. 11, 2026
Restructuring Cost and Reserve [Line Items]      
Restructuring expenses $ 165 $ 402  
Fiscal 2026 Oracle Restructuring [Member]      
Restructuring Cost and Reserve [Line Items]      
Total estimated restructuring costs [1] $ 2,103    
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Restructuring and Other Expenses    
Restructuring expenses $ 167 $ 415  
Fiscal 2026 Oracle Restructuring [Member] | Subsequent Event      
Restructuring Cost and Reserve [Line Items]      
Total estimated restructuring costs     $ 700
[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.
v3.26.1
RESTRUCTURING AND OTHER EXPENSES - Summary of All Plans (Details)
$ in Millions
 3 Months Ended
Aug. 31, 2026
USD ($)
 [1]
Restructuring Reserve Disclosures [Abstract]  
Accrued at period start $ 653 [2]
Initial Costs 161 [3]
Adjustments to Cost 4 [4]
Cash Payments (330)
Others 1 [5],[6]
Accrued at period end 489 [2]
Fiscal 2026 Oracle Restructuring [Member]  
Restructuring Reserve Disclosures [Abstract]  
Accrued at period start 567 [2]
Initial Costs 161 [3]
Adjustments to Cost 6 [4]
Cash Payments (324)
Others 0 [6]
Accrued at period end 410 [2]
Total Costs Accrued to Date 1,971
Total Expected Program Costs 2,103
Fiscal 2026 Oracle Restructuring [Member] | Other [Member]  
Restructuring Reserve Disclosures [Abstract]  
Accrued at period start 170 [2]
Initial Costs 52 [3]
Adjustments to Cost 6 [4]
Others 0 [6]
Accrued at period end 114 [2]
Total Costs Accrued to Date 818
Total Expected Program Costs 835
Fiscal 2026 Oracle Restructuring [Member] | Cloud and Software [Member]  
Restructuring Reserve Disclosures [Abstract]  
Cash Payments (120)
Fiscal 2026 Oracle Restructuring [Member] | Cloud and Software [Member] | Operating Segments [Member]  
Restructuring Reserve Disclosures [Abstract]  
Accrued at period start 219 [2]
Initial Costs 69 [3]
Adjustments to Cost 1 [4]
Others 0 [6]
Accrued at period end 169 [2]
Total Costs Accrued to Date 729
Total Expected Program Costs 776
Fiscal 2026 Oracle Restructuring [Member] | Hardware [Member]  
Restructuring Reserve Disclosures [Abstract]  
Cash Payments (15)
Fiscal 2026 Oracle Restructuring [Member] | Hardware [Member] | Operating Segments [Member]  
Restructuring Reserve Disclosures [Abstract]  
Accrued at period start 29 [2]
Initial Costs 10 [3]
Adjustments to Cost 0 [4]
Others 0 [6]
Accrued at period end 24 [2]
Total Costs Accrued to Date 88
Total Expected Program Costs 93
Fiscal 2026 Oracle Restructuring [Member] | Services [Member]  
Restructuring Reserve Disclosures [Abstract]  
Cash Payments (75)
Fiscal 2026 Oracle Restructuring [Member] | Services [Member] | Operating Segments [Member]  
Restructuring Reserve Disclosures [Abstract]  
Accrued at period start 149 [2]
Initial Costs 30 [3]
Adjustments to Cost (1) [4]
Others 0 [6]
Accrued at period end 103 [2]
Total Costs Accrued to Date 336
Total Expected Program Costs 399
Fiscal 2026 Oracle Restructuring [Member] | Other [Member]  
Restructuring Reserve Disclosures [Abstract]  
Cash Payments (114)
Other Restructuring Plans [Member]  
Restructuring Reserve Disclosures [Abstract]  
Accrued at period start 86 [5]
Initial Costs 0 [3],[5]
Adjustments to Cost (2) [4],[5]
Cash Payments (6) [5]
Others 1 [5],[6]
Accrued at period end $ 79 [5]
[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] The balances as of August 31, 2026 and May 31, 2026 included $422 million and $581 million, respectively, recorded in other current liabilities, and $67 million and $72 million, respectively, recorded in other non-current liabilities within our condensed consolidated balance sheets.
[3] Costs recorded for the respective restructuring plans during the period presented.
[4] All plan adjustments were changes in estimates whereby increases and decreases in costs were generally recorded to operating expenses in the period of adjustments.
[5] Other restructuring plans presented in the table above included condensed information for other Oracle based plans and other plans associated with certain of our acquisitions whereby we continued to make cash outlays to settle obligations under these plans during the periods presented but for which the periodic impact to our condensed consolidated statements of operations was not significant.
[6] Represents foreign currency translation and certain other non-cash adjustments.
v3.26.1
RESTRUCTURING AND OTHER EXPENSES - Summary of All Plans - Parenthetical (Details) - USD ($)
$ in Millions
Aug. 31, 2026
May 31, 2026
Restructuring Cost and Reserve [Line Items]    
Restructuring Reserve [1],[2] $ 489 $ 653
Location, Statement of Financial Position, Balance [Axis]: us-gaap:OtherLiabilitiesCurrent    
Restructuring Cost and Reserve [Line Items]    
Restructuring Reserve 422 581
Location, Statement of Financial Position, Balance [Axis]: us-gaap:OtherLiabilitiesNoncurrent    
Restructuring Cost and Reserve [Line Items]    
Restructuring Reserve $ 67 $ 72
[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] The balances as of August 31, 2026 and May 31, 2026 included $422 million and $581 million, respectively, recorded in other current liabilities, and $67 million and $72 million, respectively, recorded in other non-current liabilities within our condensed consolidated balance sheets.
v3.26.1
DEFERRED REVENUES (Details) - USD ($)
$ in Millions
Aug. 31, 2026
May 31, 2026
Deferred Revenues [Line Items]    
Deferred revenues, current $ 14,686 $ 9,916
Deferred revenues, non-current (in other non-current liabilities) 16,103 5,479
Total deferred revenues 30,789 15,395
Cloud [Member] | Cloud [Member]    
Deferred Revenues [Line Items]    
Deferred revenues, current 6,348 3,228
Software [Member] | Software [Member]    
Deferred Revenues [Line Items]    
Deferred revenues, current 7,284 5,662
Hardware [Member] | Hardware [Member]    
Deferred Revenues [Line Items]    
Deferred revenues, current 577 521
Services [Member] | Services [Member]    
Deferred Revenues [Line Items]    
Deferred revenues, current $ 477 $ 505
v3.26.1
LEASES AND OTHER COMMITMENTS - Components of Lease Expense (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
Lease, Cost [Abstract]    
Operating lease expense $ 1,101 $ 575
Finance lease expense:    
Amortization of ROU assets 149 59
Interest on lease liabilities 126 48
Total finance lease expense $ 275 $ 107
v3.26.1
LEASES AND OTHER COMMITMENTS - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($)
$ in Millions
Aug. 31, 2026
May 31, 2026
Operating leases:    
Operating lease ROU assets $ 33,967 $ 29,690
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Operating lease ROU assets Operating lease ROU assets
Operating lease liabilities:    
Operating lease liabilities, current $ 4,027 $ 3,542
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Current Other Liabilities, Current
Operating lease liabilities, non-current $ 30,594 $ 26,648
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Operating lease liabilities, non-current Operating lease liabilities, non-current
Total operating lease liabilities $ 34,621 $ 30,190
Finance leases:    
Finance lease ROU assets $ 8,856 $ 7,464
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property, Plant, and Equipment, after Accumulated Depreciation, Depletion, and Amortization Property, Plant, and Equipment, after Accumulated Depreciation, Depletion, and Amortization
Finance lease liabilities:    
Finance lease liabilities, current $ 749 $ 620
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Current Other Liabilities, Current
Finance lease liabilities, non-current $ 8,436 $ 7,081
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Noncurrent Other Liabilities, Noncurrent
Total finance lease liabilities $ 9,185 $ 7,701
v3.26.1
LEASES AND OTHER COMMITMENTS - Supplemental Cash Flow Information Related to Leases (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
Cash paid for amounts included in the measurement of lease liabilities:    
Operating leases $ 950 $ 567
Finance leases 186 86
ROU assets obtained in exchange for lease obligations:    
Operating leases 4,903 3,181
Finance leases $ 1,539 $ 1,122
v3.26.1
LEASES AND OTHER COMMITMENTS - Schedule of Maturities of Lease Liabilities (Details) - USD ($)
$ in Millions
Aug. 31, 2026
May 31, 2026
Operating Leases    
Remainder of fiscal 2027 $ 3,219  
Fiscal 2028 4,135  
Fiscal 2029 4,097  
Fiscal 2030 4,109  
Fiscal 2031 4,089  
Fiscal 2032 4,030  
Thereafter 24,371  
Total lease payments 48,050  
Less: imputed interest (13,429)  
Total operating lease liabilities $ 34,621 $ 30,190
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 2027 $ 620  
Fiscal 2028 852  
Fiscal 2029 923  
Fiscal 2030 947  
Fiscal 2031 971  
Fiscal 2032 996  
Thereafter 9,886  
Total lease payments 15,195  
Less: imputed interest (6,010)  
Total finance lease liabilities $ 9,185 $ 7,701
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Noncurrent  
v3.26.1
LEASES AND OTHER COMMITMENTS - Unconditional Purchase and Certain Other Obligations (Details)
$ in Millions
Aug. 31, 2026
USD ($)
Unconditional Obligations [Abstract]  
Remainder of fiscal 2027 $ 5,449
Fiscal 2028 6,176
Fiscal 2029 3,863
Fiscal 2030 4,318
Fiscal 2031 6,768
Fiscal 2032 954
Thereafter 6,622
Total $ 34,150
v3.26.1
LEASES AND OTHER COMMITMENTS Narrative (Details)
$ in Millions
Aug. 31, 2026
USD ($)
Lessee, Lease, Description [Line Items]  
Additional operating lease commitments $ 288,000
Unconditional purchase and certain other obligations $ 34,150
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
v3.26.1
STOCKHOLDERS' EQUITY Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Sep. 10, 2026
Feb. 02, 2026
Aug. 31, 2026
Aug. 31, 2025
May 31, 2026
Mandatory Convertible Preferred Stock [Abstract]          
Preferred stock shares authorized     1,000,000   1,000,000
Stock Repurchases [Abstract]          
Amount available for future repurchases     $ 6,300    
Repurchases of common stock (in shares)     0 400,000  
Repurchased amount       $ 93  
Dividends on Common Stock [Abstract]          
Proceeds from issuances of common stock via at-the-market program, net of issuance costs     $ 19,909 $ 0  
Stock-based compensation expense and valuations of stock awards [Abstract]          
Forfeitures and cancellations (in shares)     4,000,000    
Employee Stock Option          
Stock-based compensation expense and valuations of stock awards [Abstract]          
Number of shares issued share-based awards     400,000    
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     2,000,000    
Vesting period     4 years    
Subsequent Event | Quarterly Cash Dividend          
Dividends on Common Stock [Abstract]          
Dividends declared per share of outstanding common stock (in dollars per share) $ 0.5        
6.50% Series D Mandatory Convertible Preferred Stock [Member]          
Mandatory Convertible Preferred Stock [Abstract]          
Preferred stock dividend rate percentage     6.50%   6.50%
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) $ 1,625        
Dividend payable date Oct. 15, 2026        
Dividend record date Oct. 01, 2026        
ATM Offering [Member]          
Dividends on Common Stock [Abstract]          
Proceeds from issuances of common stock via at-the-market program, net of issuance costs   $ 20,000 $ 19,900    
Common stock shares sold     141,000,000    
v3.26.1
STOCKHOLDERS' EQUITY (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
Stock-based compensation expense and valuations of stock awards [Abstract]    
Total stock-based compensation $ 1,127 $ 1,124
Location, Statement of Income, Balance [Axis]: us-gaap:GeneralAndAdministrativeExpense    
Stock-based compensation expense and valuations of stock awards [Abstract]    
Total stock-based compensation 98 88
Location, Statement of Income, Balance [Axis]: us-gaap:ResearchAndDevelopmentExpense    
Stock-based compensation expense and valuations of stock awards [Abstract]    
Total stock-based compensation 667 647
Location, Statement of Income, Balance [Axis]: us-gaap:SellingAndMarketingExpense    
Stock-based compensation expense and valuations of stock awards [Abstract]    
Total stock-based compensation 171 177
Location, Statement of Income, Balance [Axis]: orcl:CloudAndSoftwareExpenses    
Stock-based compensation expense and valuations of stock awards [Abstract]    
Total stock-based compensation 134 156
Location, Statement of Income, Balance [Axis]: orcl:HardwareExpenses    
Stock-based compensation expense and valuations of stock awards [Abstract]    
Total stock-based compensation 6 7
Location, Statement of Income, Balance [Axis]: orcl:ServicesExpense    
Stock-based compensation expense and valuations of stock awards [Abstract]    
Total stock-based compensation $ 51 $ 49
v3.26.1
INCOME TAXES Narrative (Details) - USD ($)
$ in Billions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
May 31, 2026
Income Tax Disclosure [Abstract]      
Effective income tax rate 15.10% 14.60%  
Net deferred tax assets $ 11.3   $ 11.2
v3.26.1
SEGMENT INFORMATION Narrative (Details)
 3 Months Ended
Aug. 31, 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
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
v3.26.1
SEGMENT INFORMATION (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
Segment reporting information [Line Items]    
Revenues $ 19,345 $ 14,926
Cloud and software expenses [1] 6,400 3,607
Sales and marketing expenses 1,811 2,063
Operating income 6,728 4,277
Operating Segments [Member]    
Segment reporting information [Line Items]    
Revenues 19,345 14,926
Expenses 9,090 6,456
Operating income [2] 10,255 8,470
Operating Segments [Member] | Cloud and Software [Member]    
Segment reporting information [Line Items]    
Revenues 17,157 12,907
Cloud and software expenses 6,235 3,418
Sales and marketing expenses 1,564 1,798
Operating income [2] 9,358 7,691
Operating Segments [Member] | Hardware [Member]    
Segment reporting information [Line Items]    
Revenues 774 670
Hardware expenses 272 169
Sales and marketing expenses 50 54
Operating income [2] 452 447
Operating Segments [Member] | Services [Member]    
Segment reporting information [Line Items]    
Revenues 1,414 1,349
Services expenses 969 1,017
Operating income [2] $ 445 $ 332
[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, restructuring and other expenses, stock-based compensation, interest expense or certain other non-operating income, 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.
v3.26.1
SEGMENT INFORMATION RECONCILIATION (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
Reconciliation of Total Operating Segment Margin to Income Before Provision for Income Taxes [Abstract]    
Total margin for operating segments $ 6,728 $ 4,277
Research and development (2,401) (2,491)
General and administrative (376) (376)
Amortization of intangible assets (202) (420)
Restructuring and other (94) (415)
Stock-based compensation for operating segments (362) (389)
Expense allocations and other, net (92) (102)
Interest expense (1,428) (923)
Non-operating income, net 307 73
Income before income taxes 5,607 3,427
Operating Segments [Member]    
Reconciliation of Total Operating Segment Margin to Income Before Provision for Income Taxes [Abstract]    
Total margin for operating segments [1] $ 10,255 $ 8,470
[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, restructuring and other expenses, stock-based compensation, interest expense or certain other non-operating income, 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.
v3.26.1
SUMMARY OF TOTAL REVENUES BY GEOGRAPHIC REGION (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
Disaggregation of Revenue [Line Items]    
Total revenues $ 19,345 $ 14,926
Americas [Member]    
Disaggregation of Revenue [Line Items]    
Total revenues 13,711 9,662
EMEA [Member]    
Disaggregation of Revenue [Line Items]    
Total revenues [1] 3,726 3,481
Asia Pacific [Member]    
Disaggregation of Revenue [Line Items]    
Total revenues $ 1,908 $ 1,783
[1] Comprises Europe, the Middle East and Africa
v3.26.1
SUMMARY OF SOFTWARE REVENUES AND CLOUD REVENUES BY OFFERINGS (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
Disaggregation of Revenue [Line Items]    
Total revenues $ 19,345 $ 14,926
Software License [Member]    
Disaggregation of Revenue [Line Items]    
Total revenues 655 766
Software Support [Member]    
Disaggregation of Revenue [Line Items]    
Total revenues 4,895 4,955
Software Revenues [Member]    
Disaggregation of Revenue [Line Items]    
Total revenues 5,550 5,721
Cloud Applications [Member]    
Disaggregation of Revenue [Line Items]    
Total revenues 4,219 3,839
Cloud Infrastructure [Member]    
Disaggregation of Revenue [Line Items]    
Total revenues 7,388 3,347
Cloud Revenues [Member]    
Disaggregation of Revenue [Line Items]    
Total revenues $ 11,607 $ 7,186
v3.26.1
EARNINGS PER SHARE (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Aug. 31, 2026
Aug. 31, 2025
Earnings Per Share [Abstract]    
Net Income (Loss) $ 4,760 $ 2,927
Preferred stock dividends 81 0
Net income available to common shareholders, Basic 4,679 2,927
Net income available to common shareholders, Diluted $ 4,679 $ 2,927
Weighted-average common shares outstanding 2,966 2,826
Dilutive effect of employee stock plans 34 83
Dilutive weighted-average common shares outstanding 3,000 2,909
Basic earnings per share attributable to common shareholders $ 1.58 $ 1.04
Diluted earnings per share attributable to common shareholders $ 1.56 $ 1.01
Stock awards and shares excluded from calculation [1] 64 2
[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 performance-based stock option arrangements as the performance conditions were not yet met. These excluded stock awards and shares could be dilutive in the future.
v3.26.1
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%