Microsoft vs. Oracle: how they make money

• Azure customers · 30.7% of revenueOrganizations renting computing, storage, data and AI services, charged by use. OpenAI is one: it contracted in October 2025 to buy an incremental $250 billion of Azure.
• Microsoft 365 cloud subscribers · 30.2% of revenueOrganizations and households paying for Office, security and Copilot, and developers paying for GitHub cloud.
• License buyers · 11.2% of revenueOrganizations and consumers buying software installed on their own machines.
• Advertisers · 7.5% of revenueBrands paying for ads on Bing, MSN and LinkedIn; this line also holds LinkedIn Premium subscriptions.
• Gamers · 6.6% of revenuePeople buying games, Game Pass and consoles; this line also holds XBOX ads.
• Industry solutions customers · 6.1% of revenueOrganizations paying for Dynamics 365, LinkedIn recruiting and sales tools, and healthcare cloud services.
• PC makers and device buyers · 5.1% of revenuePC makers licensing Windows to pre-install, and buyers of Surface devices.
• Support and training customers · 2.5% of revenueOrganizations paying for product support, consulting and training.

• Software support customers · 29.4% of revenueOrganizations that pay yearly to keep licensed Oracle software updated and supported.
• Cloud infrastructure customers · 26.9% of revenueOrganizations renting computing, including AI companies on large contracts. Oracle's releases name OpenAI, xAI, Meta, NVIDIA and AMD as customers.
• Cloud application customers · 23.6% of revenueBusinesses and public bodies paying for online finance, staffing, supply chain and health software.
• Services clients · 8.5% of revenueCustomers paying for consulting and related help.
• Software license buyers · 7.0% of revenueCustomers buying the right to run Oracle software on their own computers.
• Hardware buyers · 4.6% of revenueCustomers buying servers, storage and hardware support.

FY2026, recast to the two FY2027 segments

FY2026

Debt

$35.5B

Cash and investments

$64.5B

On Sep 30, 2026.

At Sep 30, 2026 Microsoft's cash and short-term investments exceeded its debt by $29.0 billion, before counting $98.5 billion of lease liabilities.

Debt

$125.3B

Cash and investments

$37.1B

On Aug 31, 2026.

At Aug 31, 2026 Oracle owed $125.3 billion of notes and other borrowings and held $37.1 billion of cash and marketable securities, so debt exceeded cash by $88.3 billion.

• One class of shares.
• Officers and directors as a group: 0.0% of shares (as of Sep 30, 2026).
• Vanguard Capital Management LLC: 7.5% (as of Apr 30, 2026).
• BlackRock, Inc.: 7.3% (as of Feb 13, 2024).

• 2 classes of shares (votes per share: Common stock 1, 6.50% Series D mandatory convertible preferred (depositary shares) 0).
• Officers and directors as a group: 38.4% of shares, 38.4% of votes (as of Sep 21, 2026).
• Lawrence J. Ellison (founder, Executive Chair, CTO): 38.2% of its class, 38.2% of votes (as of Sep 21, 2026).

• OpenAI gains and losses swing net income (other)Other income included a $10.0 billion pre-tax OpenAI net gain in Q2 FY2026 and a $4.1 billion net loss in Q1 FY2026. That loss is why Q1 FY2027 net income rose 32% while operating income rose 21%. Microsoft's interest fell to about 24% as-converted at Sep 30, 2026, from about 27% at Mar 31, 2026.
• Competition, including from partners (competition)Microsoft's 10-K calls AI highly competitive and fast-moving. It says its AI products compete with those of very large cloud companies and others, many of which are also current or potential partners. In October 2025 Microsoft gave up its right of first refusal to be OpenAI's compute provider.
• Windows and XBOX revenue fell (demand)Windows OEM and devices revenue fell 22% in Q1 FY2027; Microsoft cited last year's Windows 10 end-of-support demand, inventory drawdowns and weaker PC demand. The CFO said on Oct 28, 2026 she expected a decline in the mid-thirties percent for Q2 FY2027. XBOX revenue fell to $21.8 billion in FY2026 from $23.5 billion.

• New shares dilute existing holders (other)Common shares rose 5.0% from 2,880.5 million on Jun 12, 2026 to 3,023.7 million on Sep 7, 2026, after a $19.9 billion share sale. The preferred stock will convert into up to 31.24 million more. Oracle said on Oct 28, 2026 it plans up to $10 billion more equity through FY2030.
• One person holds 38.2% of the votes (governance)Larry Ellison held 38.2% of Oracle's common stock on Sep 21, 2026, with one vote per share. 413,000,000 of his shares are used as collateral for personal loans. Oracle's 10-K also names him as a key person it relies on.
• Power and chip supply (technology)Oracle's 10-K says growing OCI depends on data center capacity, power and chips from outside suppliers. It had $34.2 billion of purchase and other obligations at Aug 31, 2026, mainly components and power.
• Profit and cash figures include unusual items (other)FY2026 net income includes $3.5 billion of non-operating income, mainly the $2.7 billion Ampere gain. Q1 FY2027 operating cash flow of $23.1 billion includes $11.4 billion of customer prepayments, which Oracle reports on its own line.