Technology · NYSE: ORCL
Oracle: how the business works
Oracle rents cloud computing and sells business software and support to organizations, with revenue of $67.4 billion in FY2026.
By Hardik Bhandare · Checked against filings:
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Oracle Corporation · Austin, Texas · Founded 1977
Last updated
- Revenue, FY2026
- $67.4B
- Operating income, FY2026
- $20.6B
- Net income to common, FY2026 (incl. investment gains)
- $17.0B
- Remaining performance obligations, Aug 31, 2026
- $664B
- Larry Ellison's stake, Sep 21, 2026 (proxy)
- 38.2%
The short version
Oracle in 5 points
1 · What it sells
Oracle rents cloud computing, sells business applications online, and licenses software with yearly support, plus hardware and consulting, with revenue of $67.4 billion in FY2026.
2 · Who pays it
In FY2026, software support customers paid 29.4% of revenue, cloud infrastructure customers 26.9%, cloud application customers 23.6%, services clients 8.5%, license buyers 7.0% and hardware buyers 4.6%.
3 · What it keeps from $100
Of every $100 that came in during FY2026, Oracle kept $24.0 as net income to common stockholders, including a $2.7 billion pre-tax gain on its Ampere stake, while its operating income was $30.6 per $100 of revenue.
4 · Where the operating profit comes from
Cloud and software earned $34.5 billion of Oracle's $38.0 billion of segment margin in FY2026, before costs Oracle does not split by segment, such as $10.3 billion of research and development.
5 · The one thing to watch
Oracle's 10-Q reports $664 billion of remaining performance obligationsSigned contracts with customers that have not been billed yet. at Aug 31, 2026, with 13% expected as revenue within 12 months, and $288 billion of additional leases not yet started.
Sources: From Oracle's FY2026 10-K and its Q1 FY2027 10-Q · checked
See the full receipt and the management scorecard below
01Where the money goes · FY2026
Where does $100 of Oracle's money go?
Oracle · FY2026
Receipt for every $100
| Running cloud and software | $24.8 |
|---|---|
| Research and development | $14.5 |
| Sales and marketing | $11.7 |
| Services and hardware | $7.6 |
| Admin, amortization and restructuring | $7.2 |
| Interest and preferred dividends | $6.6 |
| Income tax | $3.5 |
| Kept as net income to common stockholders | $24.0 |
| Total | $100 |
Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.
How this is worked out
Cityfort calculation from FY2026 10-K. Of every $100 that came in during FY2026 (revenue plus non-operating income): each line = line ÷ $70.9 billion × 100. The profit line includes a $2.7 billion pre-tax gain on its Ampere stake. Per $100 of revenue alone, operating income was $30.6.
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02The business in one line
What does Oracle do?
Organizations pay Oracle for cloud computing, business software and support; most of the money goes on running those services, research and sales, and what's left was $30.6 of operating income per $100 of revenue in FY2026.
- In FY2026, cloud was 50.5% of revenue, software licenses and support 36.4%, services 8.5% and hardware 4.6%.
- Oracle spent $55.7 billion on capital expenditures (capex) in FY2026, mainly data centers, against $32.0 billion of cash from operations.
03Who pays it
Who pays Oracle?
Software support customers
29%
of revenue
Organizations that pay yearly to keep licensed Oracle software updated and supported.
Cloud infrastructure customers
27%
of revenue
Organizations renting computing, including AI companies on large contracts. Oracle's releases name OpenAI, xAI, Meta, NVIDIA and AMD as customers.
Cloud application customers
24%
of revenue
Businesses and public bodies paying for online finance, staffing, supply chain and health software.
Services clients
9%
of revenue
Customers paying for consulting and related help.
Software license buyers
7%
of revenue
Customers buying the right to run Oracle software on their own computers.
Hardware buyers
5%
of revenue
Customers buying servers, storage and hardware support.
- Software support customers29%
- Cloud infrastructure customers27%
- Cloud application customers24%
- Services clients9%
- Software license buyers7%
- Hardware buyers5%
How spread out the customers are
Oracle's FY2026 10-K says no single customer was 10% or more of revenue in FY2024 to FY2026. It also says some OCI offerings are more concentrated among large customers. Oracle does not disclose any customer's share of its remaining performance obligations. Its Jun 30, 2025 filing describes one unnamed contract expected to bring more than $30 billion of annual revenue starting in FY2028.
04Why it makes money
Why does Oracle make money?
Oracle signs long cloud contracts first, builds for them next, and records the revenue over the following years.
Software support brings in about $20 billion a year. Cloud infrastructure grows faster but needs data centers before the revenue arrives. So capex rose above cash from operations, and cloud and software margin fell from $63 to $59 per $100 of segment revenue in FY2026.
Capex per $100 of revenue
$13.0$82.6
FY2024 to FY2026
- Customers sign multi-year cloud contracts
- The contracts join remaining performance obligations
- Oracle leases and equips data centers
- Cash, borrowing, new shares and customer prepayments pay for it
- Capacity goes live and revenue is recorded over the years
- Software support keeps bringing in yearly revenue alongside
↺ Step 6 feeds back into step 1.
05Business segments · FY2026
Which businesses make up Oracle?
Cloud and software
87%Cloud services, software licenses and support. Segment margin was $34.5 billion of Oracle's $38.0 billion total. Oracle's segment margin leaves out costs such as $10.3 billion of research and development, so it is not operating income.
Revenue $58.5B
Services
9%Consulting and related help. Segment margin was $1.5 billion.
Revenue $5.7B
Hardware
5%Servers, storage and hardware support. Segment margin was $2.0 billion.
Revenue $3.1B
How the mix changed
- Cloud and software
- Services
- Hardware
Revenue by segment, FY2022 to FY2026.
US$
See the numbers
06The numbers · Consolidated · US$
How has Oracle done?
Revenue
$67.4BFY2026
Revenue rose every year, from $42.4 billion in FY2022 to $67.4 billion in FY2026.
US$
See the numbers
Net profit
$17.0BFY2026
Net income to common stockholders rose from $6.7 billion in FY2022 to $17.0 billion in FY2026, which includes a $2.7 billion pre-tax gain on its Ampere stake; operating income rose from $10.9 billion to $20.6 billion.
US$
See the numbers
Profit kept per $100 of revenue
$25.2FY2026
Operating income per $100 of revenue rose from $25.7 in FY2022 to $30.6 in FY2026; net income to common was $25.2 per $100 of revenue in FY2026, including investment gains.
$ of profit per $100 of revenue (net margin)
See the numbers
Free cash flow
−$23.7BFY2026
Free cash flow went from $11.8 billion in FY2024 to minus $23.7 billion in FY2026, when capex was $55.7 billion and cash from operations $32.0 billion, including $4.6 billion of customer prepayments.
US$ · cash from operations minus spending on plants and equipment
See the numbers
See all yearly numbers
EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (May 31; FY2026 is the year ended May 31, 2026, and Q1 FY2027 is June to August 2026). Net profit is the share belonging to the company's owners. Total net income differs from net profit to the company's owners: Total net income was $17,087 million; $103 million of preferred stock dividends leaves $16,984 million for common stockholders.
Learn: Fiscal years that don't end in December: Nvidia's FY2027 explained · Stock-based compensation and dilution: pay that becomes shares
07Who runs it
Who runs Oracle, and did they deliver?
Lawrence J. Ellison
Founder, Executive Chair and Chief Technology Officer · since 1977
Founded Oracle in June 1977; CEO until September 2014. FY2026 total pay was $131.0 million.
Clayton M. Magouyrk
Co-Chief Executive Officer · since 2025
Previously ran Oracle Cloud Infrastructure. FY2026 total pay was $627.5 million, mostly a one-time option award (see governance).
Michael D. Sicilia
Co-Chief Executive Officer · since 2025
Previously President, Industries. FY2026 total pay was $256.6 million.
Hilary Maxson
Chief Financial Officer · since 2026
Joined Apr 6, 2026 from Schneider Electric, where she was group CFO.
Safra A. Catz
Executive Vice Chair of the Board · since 2025
CEO from September 2014 to September 2025.
What they said, and what happened
1 missed · 3 delivered · 1 partly delivered · 4 too early to tell
Said on Jun 11, 2025
CEO Safra Catz said total cloud growth would increase from 24% in FY2025 to over 40% in FY2026.
MissedWhat happened
Reported FY2026 cloud growth was 39% in US dollars and 37% in constant currency.
Said on Jun 11, 2025
CEO Safra Catz said cloud infrastructure growth was expected to increase to over 70% in FY2026.
DeliveredWhat happened
Reported FY2026 cloud infrastructure growth was 77%.
Said on Jun 11, 2025
CEO Safra Catz said remaining performance obligations were likely to grow more than 100% in FY2026.
DeliveredWhat happened
They rose 363% to $638 billion at May 31, 2026.
Said on Mar 10, 2026
Oracle said it expected FY2026 revenue of $67 billion and capital expenditures of $50 billion.
Partly deliveredWhat happened
Reported revenue was $67.4 billion. Capex was $55.7 billion, above the statement.
Said on Jun 10, 2026
Oracle guided Q1 FY2027 revenue growth of 27% to 29% and cloud growth of 58% to 64%.
DeliveredWhat happened
Reported revenue growth was 30%, above the range; cloud growth was 62%, within it.
Said on Mar 10, 2026
Oracle said it did not expect to issue additional bonds beyond its $50 billion financing plan in calendar 2026.
Too early to tellWhat happened
The EDGAR form list to Nov 1, 2026 shows no senior-note prospectus since February 2026. Calendar 2026 has not ended.
Said on Sep 9, 2025
CEO Safra Catz said OCI revenue would be $18 billion in FY2026, then increase to $32 billion, $73 billion, $114 billion and $144 billion over the next four years.
Too early to tellWhat happened
FY2026 was $18.1 billion, and Q1 FY2027 was $7.4 billion. Oracle's Oct 28, 2026 release does not restate this path.
Said on Oct 28, 2026
Oracle said it expects positive free cash flowCash from operations minus spending on buildings and equipment. Learn more during the second half of FY2028 and at least $30 billion in FY2029.
Too early to tellWhat happened
Free cash flow was minus $5.4 billion in Q1 FY2027.
Said on Oct 28, 2026
Oracle said it would limit additional capital raises through FY2030 to $20 billion, excluding refinancing: $10 billion of equity and $10 billion of gross debt.
Too early to tellWhat happened
This is on top of the $20 billion at-the-market program completed in Q1 FY2027.
08What could go wrong
What could go wrong for Oracle?
- Execution
Long data center commitments against contracts years away
Oracle had $288 billion of additional leases not yet started at Aug 31, 2026, with terms of 15 to 19 years. It expected 13% of its $664 billion of remaining performance obligations as revenue within 12 months. Oracle's 10-K says it could be locked into commitments for excess space if it overestimates demand.
Watch Lease commitments and the share of RPO due in 12 months, in each 10-Q.
- Concentration
Large customers behind the backlog
Oracle's 10-K says some OCI offerings are more concentrated among large customers, and that some customers may be highly leveraged. Most of the RPO growth comes from certain significant cloud contracts. Oracle does not disclose any customer's share.
Watch Any change in the 10-K's customer note and any named contract filed on Form 8-K.
- Debt
Capex above cash from operations
Free cash flow was minus $23.7 billion in FY2026 and minus $5.4 billion in Q1 FY2027. Oracle's Jun 22, 2026 10-K expected capex to keep rising in FY2027 and later years. Its Oct 28, 2026 release expects peak capex in FY2027 and FY2028 and a step-down in FY2029. Debt was $125.3 billion at Aug 31, 2026, against $92.6 billion at May 31, 2025. Oracle says a change to its outlook or credit rating could hurt the value of its debt and stock.
Watch Capex, free cash flow and debt in each release, against the Oct 28, 2026 statements.
- Other
New shares dilute existing holders
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.
Watch Shares outstanding on each 10-Q cover.
- Governance
One person holds 38.2% of the votes
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.
Watch The ownership table and collateral disclosure in each year's proxy statementThe yearly filing about shareholder votes, the board and executive pay. Learn more.
- Technology
Power and chip supply
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.
Watch Purchase obligations in each 10-Q and supplier risk wording in the 10-K.
- Other
Profit and cash figures include unusual items
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.
Watch Operating income next to net income, and prepayments next to operating cash flow.
- Legal
Lawsuits
A proposed securities class action filed Feb 3, 2026 alleges false and misleading statements about Oracle's cloud infrastructure business. A Dutch class action alleges privacy violations. Oracle says it has meritorious defenses and does not expect a material impact from either.
Watch The legal proceedings note in each 10-K and 10-Q.
09Both sides
What do supporters and critics point to?
What supporters point to
- Oracle reported remaining performance obligations of $664 billion at Aug 31, 2026, up from $137.8 billion at May 31, 2025.
- Cloud infrastructure revenue grew 121% to $7.4 billion in Q1 FY2027.
- Operating income per $100 of revenue rose from $25.7 in FY2022 to $30.6 in FY2026.
- Q1 FY2027 revenue grew 30%, above the 27% to 29% Oracle guided on Jun 10, 2026.
- Oracle said on Jun 10, 2026 that prepaid and customer-supplied hardware in its large AI contracts totaled $75 billion.
What critics point to
- Capex was $55.7 billion in FY2026 against $32.0 billion of cash from operations, so free cash flow was minus $23.7 billion.
- Debt rose from $92.6 billion at May 31, 2025 to $125.3 billion at Aug 31, 2026, before $43.8 billion of lease liabilities.
- Oracle had $288 billion of leases not yet started, and says lease terms typically do not align with customer contracts.
- Oracle expected 13% of its remaining performance obligations as revenue within 12 months, and gives no customer split.
- Common shares rose 5.0% between Jun 12 and Sep 7, 2026, after a $19.9 billion share sale.
10What to watch next
What should you watch next at Oracle?
Next event
Q2 FY2027 results (quarter ending Nov 30, 2026)
Date not announced yet.
Capex against cash from operations
In Q1 FY2027 capex was $28.5 billion and cash from operations $23.1 billion, including $11.4 billion of customer prepayments. Oracle said on Oct 28, 2026 it expects positive free cash flow during the second half of FY2028.
Remaining performance obligations and when they turn into revenue
Oracle's 10-Q reports $664 billion at Aug 31, 2026, with 13% expected within 12 months, 37% in months 13 to 36 and 34% in months 37 to 60.
New funding
Debt was $125.3 billion at Aug 31, 2026. Oracle said on Oct 28, 2026 it would limit additional capital raises through FY2030 to $20 billion, excluding refinancing.
11Key facts
Key facts about Oracle
- What does Oracle do, and what is its business model?
- Oracle rents cloud computing and databases, sells business applications as a cloud service, and sells software licenses with yearly support, plus hardware and consulting. Oracle's revenue was $67.4 billion in FY2026 (the year ended May 31, 2026), with 141,000 employees at that date.
- How does Oracle make money?
- In FY2026 Oracle's revenue came from software support (29.4%), cloud infrastructure (26.9%), cloud applications (23.6%), services (8.5%), software licenses (7.0%) and hardware (4.6%).
- Is Oracle profitable?
- Yes. Oracle had operating income of $20.6 billion and net income to common stockholders of $17.0 billion in FY2026, including a $2.7 billion pre-tax gain from selling its Ampere stake. Oracle's free cash flow that year was minus $23.7 billion, because capex was $55.7 billion.
- What is Oracle's revenue by segment?
- Oracle's three segments in FY2026 were cloud and software with revenue of $58.5 billion (86.9%), services with $5.7 billion (8.5%) and hardware with $3.1 billion (4.6%).
- Who are Oracle's customers, and how much have they committed?
- Oracle sells to businesses, government agencies, educational institutions and resellers, and no single customer was 10% of revenue in FY2024 to FY2026. Oracle reported $664 billion of remaining performance obligations at Aug 31, 2026, and does not disclose any customer's share.
- Who owns Oracle?
- Oracle's 2026 proxy statement lists founder Larry Ellison with 38.2% of the common stock as of Sep 21, 2026, and 18 directors and officers together with 38.4%. It names no other holder of 5% or more.
- How much does Oracle earn from cloud infrastructure?
- Oracle Cloud Infrastructure (OCI), which rents computing, storage and databases, had revenue of $18.1 billion in FY2026, up 77%, and $7.4 billion in Q1 FY2027 (June to August 2026), up 121%.
- How much does Oracle earn from cloud applications?
- Oracle's cloud applications, such as Fusion and NetSuite business software, had revenue of $15.9 billion in FY2026, up 11%, and $4.2 billion in Q1 FY2027, up 10%.
- How much does Oracle earn from software licenses and support?
- Oracle's software support revenue was $19.8 billion and software license revenue $4.7 billion in FY2026. Together they were $24.5 billion, down from $24.7 billion in FY2025.
- How much does Oracle earn from hardware and services?
- Oracle's hardware revenue, which includes Engineered Systems, servers, storage and their support, was $3.1 billion in FY2026, and its services revenue, which includes consulting, was $5.7 billion.
Go deeper
More detail from the same filings. Open any section.
12What it sells
12What it sells
What does Oracle sell?
Software support ($19.8B in FY2026)
Yearly contracts for updates and help on licensed Oracle software. Oracle says substantially all license buyers also buy support.
Cloud infrastructure, OCI ($18.1B)
Rented computing, including graphics chips (GPUs) for AI work, plus storage, networks and databases, also inside other companies' clouds.
Cloud applications ($15.9B)
Business software delivered online: Fusion for finance, supply chain and staff, NetSuite for smaller firms, and Oracle Health.
Services ($5.7B)
Consulting and related help with Oracle's cloud, software and hardware.
Software licenses ($4.7B)
Rights to run products such as Oracle AI Database, Java and middleware on a customer's own computers.
Hardware ($3.1B)
Engineered Systems and other servers and storage, and their support.
What it does
- Does: Rents computing and databases through Oracle Cloud Infrastructure
- Does: Sells business applications as an online service
- Does: Licenses software and charges yearly support on it
- Does: Leases and equips data centers for large AI cloud contracts
What it does not do
- Does not: Does not build most of its hardware itself: third-party manufacturers do
- Does not: Does not hold Ampere any more: it sold the stake in FY2026, and Larry Ellison said on Dec 10, 2025 that designing chips for its cloud data centers was no longer strategic
- Does not: Does not report a total cost of revenue, so this page shows no gross margin
- Does not: Does not disclose how much of its contracted backlog comes from any one customer
13How the money flows
13How the money flows · FY2026
How does money flow through Oracle?
Money in
- Cloud$34.0B
- Software licenses and support$24.5B
- Services$5.7B
- Hardware$3.1B
- Non-operating income (mainly the Ampere gain)$3.5B
The company
Oracle
$70.9B came in
Money out
- Running cloud and software$17.6B
- Research and development$10.3B
- Sales and marketing$8.3B
- Services, hardware, admin, amortization and restructuring$10.6B
- Interest and preferred dividends$4.7B
- Income tax$2.5B
- Net income to common stockholders$17.0B
- Customers paid Oracle $67.4 billion in FY2026, half of it for cloud.
- Running cloud and software took $17.6 billion, research $10.3 billion and sales and marketing $8.3 billion.
- After $10.6 billion of other operating costs, operating income was $20.6 billion.
- Non-operating income, mainly the Ampere gain, added $3.5 billion; interest and preferred dividends took $4.7 billion and tax $2.5 billion.
- That left $17.0 billion for common stockholders. Capex of $55.7 billion is not in these lines; it reaches costs later as depreciation.
14What it needs to run
14What it needs to run
What does Oracle need to run?
Data centers
Property, plant and equipment (net) was $127.8 billion at Aug 31, 2026, up from $43.5 billion at May 31, 2025.
Long leases
Oracle had $288 billion of additional lease commitments at Aug 31, 2026, substantially all for data centers, with terms of 15 to 19 years.
Chips and power
Purchase and other obligations were $34.2 billion at Aug 31, 2026, mainly components for cloud infrastructure and power. Oracle says it depends on outside suppliers for both.
People
141,000 employees at May 31, 2026, down from 162,000 a year earlier; 43,000 worked in research and development.
Outside money
In FY2026 and Q1 FY2027 Oracle raised $43.0 billion of senior notes, $5.0 billion of preferred stock and $19.9 billion of common stock.
15Where it sells
15Where it sells · FY2026
Where does Oracle sell?
- Americas66%
- Europe, Middle East and Africa23%
- Asia Pacific11%
16Competitors and what protects it
16Competitors and what protects it
Who does Oracle compete with?
Amazon
Named in Oracle's FY2026 10-K as competing directly with certain Oracle cloud, software and hardware offerings.
Microsoft
Named in Oracle's FY2026 10-K as competing directly with certain Oracle cloud, software and hardware offerings.
Alphabet
Named in Oracle's FY2026 10-K as competing directly with certain Oracle cloud, software and hardware offerings.
Salesforce
Named in Oracle's FY2026 10-K as competing directly with certain Oracle cloud, software and hardware offerings.
Epic Systems
Named in Oracle's FY2026 10-K as a healthcare IT competitor since Oracle bought Cerner.
What protects the business
Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.
- Software support base4 of 5
Support revenue was $19.8 billion in FY2026 and $19.6 billion in FY2024, and Oracle says substantially all license buyers also buy support.
- Signed cloud contracts3 of 5
Oracle reported $664 billion of remaining performance obligations at Aug 31, 2026, but expected 13% as revenue within 12 months and gives no customer split.
- Range of business applications3 of 5
Cloud applications revenue was $15.9 billion in FY2026, up 11%; Oracle names Salesforce, SAP and Workday among its competitors.
Weak spot
Long costs, large customers
Oracle says its data center lease terms typically do not align with customer contracts, and that some OCI offerings are more concentrated among large customers.
17Where growth could come from
17Where growth could come from
Where could Oracle's growth come from?
Oracle said at its Oct 28, 2026 Investor Day that it expects FY2027 total revenue of at least $90 billion and FY2030 total revenue of $225 billion or more. It also said it expects positive free cash flow during the second half of FY2028. On Sep 10, 2026 it guided Q2 FY2027 revenue growth of 30% to 34%.
Cloud infrastructure (OCI)
Working+121% in Q1 FY2027
OCI revenue was $7.4 billion in Q1 FY2027, up from $3.3 billion a year earlier.
Status: Working, on track against what the company said.
Large AI cloud contracts
Early$664B RPO, Aug 31, 2026
Oracle's 10-Q reports remaining performance obligations (RPO, signed revenue not yet recorded) of $664 billion, 13% expected within 12 months. Its Sep 10, 2026 release says more than $30 billion of AI cloud contracts were booked in the quarter.
Status: Early, too early to judge.
Cloud applications
Working+10% in Q1 FY2027
Cloud applications revenue was $4.2 billion in Q1 FY2027, up from $3.8 billion a year earlier.
Status: Working, on track against what the company said.
Support customers moving to the cloud
Mixed$5.4B annualized, 3 years
Oracle says moves from support contracts added $5.4 billion of annualized cloud revenue over three fiscal years. Software revenue fell 3% in Q1 FY2027.
Status: Mixed, partly on track.
Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.
18The company's own measures (non-GAAP)
18The company's own measures · FY2026 and Q1 FY2027
What do Oracle's own measures show?
Official (GAAP): Operating income, FY2026
$20.6B
Company's own measure: Non-GAAP operating income, FY2026
$28.9B
Oracle leaves out stock-based compensationPay given as shares instead of cash, which spreads ownership more thinly. Learn more, amortization of intangible assets and restructuring.
Official (GAAP): Operating income, Q1 FY2027
$6.7B
Company's own measure: Non-GAAP operating income, Q1 FY2027
$8.2B
Same exclusions as above.
Official (GAAP): Diluted EPS, FY2026
$5.83
Company's own measure: Non-GAAP diluted EPS, FY2026
$7.63
Same exclusions as above. This figure includes investment gains; without them Oracle states $6.83.
Official (GAAP): Diluted EPS, Q1 FY2027
$1.56
Company's own measure: Non-GAAP diluted EPS, Q1 FY2027
$1.92
Same exclusions as above.
Official (GAAP): Diluted EPS, FY2026 (last full year)
$5.83
Company's own measure: FY2027 non-GAAP EPS, as Oracle stated on Oct 28, 2026
$8.10
Oracle's own statement, not a forecast by this page. The GAAP figure shown is the last full year reported.
Official (GAAP): Capital expenditures, FY2026
$55.7B
Company's own measure: Net cash outlay for capital expenditures, FY2026
$47.7B
Oracle subtracts other short-term financing for capex and customer prepayments.
Official (GAAP): Capital expenditures, Q1 FY2027
$28.5B
Company's own measure: Net cash outlay for capital expenditures, Q1 FY2027
$18.0B
Same definition as above.
Official (GAAP): Cloud revenue growth in US dollars, Q1 FY2027
62.0%
Company's own measure: Cloud revenue growth in constant currency, Q1 FY2027
61.0%
Oracle removes the effect of exchange-rate changes.
These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.
Sources
Earnings release, Q4 and fiscal 2026 (Form 8-K, Ex. 99.1); Earnings release, Q1 fiscal 2027 (Form 8-K, Ex. 99.1); Form 10-K, fiscal year 2026 (ended May 31, 2026) and 1 more
Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out · Stock-based compensation and dilution: pay that becomes shares
19Financial strength and debt
19Financial strength · Aug 31, 2026
How much debt does Oracle have?
- Total debt$125.3B
- Cash and investments$37.1B
- Net debt (debt minus cash)$88.3B
- Net worth (shareholders' money)$67.2B
- Debt to equity
- 1.87×
- $ of debt for every $1 of shareholders' money
- Debt here is notes payable and other borrowings, and excludes leases. Net figures are a Cityfort calculation from Q1 FY2027 10-Q. Oracle's Investor Day definition of net debt is wider: it adds vendor financing and leases.
- Operating and finance lease liabilities on the balance sheet were $43.8 billion at Aug 31, 2026, which with debt makes $169.1 billion.
- Oracle also had $288 billion of additional lease commitments that have not started and are not on the balance sheet, as stated in its 10-Q. They are not counted as debt here.
- Stockholders' equity rose from $43.1 billion at May 31, 2026 to $67.2 billion at Aug 31, 2026, mainly from $19.9 billion of new common stock.
- Debt maturities at May 31, 2026 were $7.2 billion in FY2027 and $10.1 billion in FY2028, with $90.3 billion due after FY2031.
20Who owns it
20Who owns it · ownership as of Sep 21, 2026
Who owns Oracle?
- Officers and directors (as a group), shares
- 38.4%
- Officers and directors (as a group), votes
- 38.4%
Shares vs votes by class
Oracle has more than one class of shares, and the classes carry different votes. The share of votes a class holds can differ a lot from its share of the shares.
- Common stock: share of all votes100.0%
- 6.50% Series D mandatory convertible preferred (depositary shares): share of all votes0.0%
Each class's part of all votes = its shares outstanding × votes per share ÷ the total for all classes.
Share classes
Holders of 5% or more
From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.
Sources
Form 10-Q, Q1 fiscal 2027 (quarter ended Aug 31, 2026); Proxy statement (DEF 14A) for the 2026 annual meeting; Form 10-K, fiscal year 2026 (ended May 31, 2026) and 1 more
Learn: Dual-class shares: when votes and ownership don't match · How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes
21What it does with profit
21What it does with profit
What does Oracle do with its profit?
Dividend per share
$2.00FY2026
Dividend paid for each share, by financial year.
$ per share
See the numbers
Buyback · May 31, 2022
Bought back $16.2 billion of common stock in FY2022.
$16.2B
Buyback · May 31, 2023
Bought back $1.3 billion of common stock in FY2023.
$1.3B
Buyback · May 31, 2024
Bought back $1.2 billion of common stock in FY2024.
$1.2B
Buyback · May 31, 2025
Bought back $600 million of common stock in FY2025.
$600M
Buyback · May 31, 2026
Bought back $95 million of common stock in FY2026.
$95M
Money raised · Feb 4, 2026
Closed $25.0 billion of senior notes (sum of eight tranches, Cityfort calculation from 8-K filed Feb 4, 2026).
$25.0B
Money raised · Feb 5, 2026
Issued 6.50% mandatory convertible preferred stock for $5.0 billion, net of costs.
$5.0B
Money raised · Aug 31, 2026
Sold about 141 million common shares in Q1 FY2027 under a $20 billion at-the-market program, for $19.9 billion net.
$19.9B
22Governance signals
22Governance signals
What do Oracle's governance filings show?
- Auditor
- Ernst & Young LLP, since 2002
- Auditor changes
- None in the period covered
- Audit qualifications
- None reported
- Related-party dealings
- Oracle's 2026 proxy puts related-person revenue at about 0.06% of revenue and operating expense at about 0.03%. Larry Ellison-related entities bought $32.2 million from Oracle, and Oracle bought $10.4 million from Ellison-related firms.
- Credit rating
- No public credit rating found
Flags to know about
shares as collateral · Sep 21, 2026
Founder's shares used as collateral
As of Sep 21, 2026, Larry Ellison had 413,000,000 Oracle shares used as collateral for personal loans, 35.7% of his holding (Cityfort calculation from 2026 proxy statement). The proxy says none are in margin accounts. Its governance committee believes this is not a material risk. The proxy adds that some stockholders continued to express concern.
other · Jul 14, 2026
Securities class action
A proposed class action filed Feb 3, 2026 in Delaware federal court, amended Jul 14, 2026, alleges false and misleading statements about Oracle's cloud infrastructure business. Oracle says it has meritorious defenses and does not expect a material impact.
other · Jul 17, 2026
Dutch privacy class action
The Privacy Collective alleges in a 2020 Amsterdam suit that an Oracle data product violates EU and Dutch privacy rules. In July 2026 the Dutch Supreme Court sent the case back to the Court of Appeal. Oracle says it has meritorious defenses.
other
Co-CEO pay
Clayton Magouyrk's reported FY2026 pay of $627.5 million mostly reflects a one-time option award valued at $621.7 million for accounting, against an intended value of $250 million. The proxy gives CEO pay ratios of 6,623 to 1 and 2,709 to 1.
other · Sep 14, 2026
Founder's share sale plan canceled
Oracle said in September 2026 that Larry Ellison canceled his Rule 10b5-1An insider's trading plan, set up in advance, that buys or sells shares on a schedule. Learn more sale plan, that no stock was sold under it, and that he has no other plans to sell.
disclosure
Backlog by customer not disclosed
Oracle's 10-K and 10-Q do not state any customer's share of remaining performance obligations. They also exclude some variable contract amounts under an elected exemption.
disclosure
Credit ratings not in these filings
The filings used for this page give no rating letters or outlooks. Oracle's Oct 28, 2026 release names investment-grade credit ratings as a priority.
23What the market paid
23What the market paid · price as of Oct 30, 2026
What did the market pay for Oracle on Oct 30, 2026?
Price as of Oct 30, 2026 (shown for education; prices change daily).
Price as of Oct 30, 2026: Oracle closed at $130.67, from Nasdaq's historical price table; Oracle's shares are listed on the NYSE. Market value = $130.67 × 3,031,501,149 common shares (proxy record date, Sep 21, 2026) = about $396.1 billion (Cityfort calculation from the Oct 30, 2026 closing price and the 2026 proxy statement). P/E = price ÷ diluted earnings per share: $130.67 ÷ $6.38, the sum of the four quarters to Aug 31, 2026, = 20.5. Those earnings include a $2.7 billion pre-tax gain on its Ampere stake.
- Share price
- $130.67
- Market value (market cap)
- $396.1B
- P/E
- 20.5×
Source: ORCL historical daily prices, Nasdaq's table for an NYSE-listed share (close of Oct 30, 2026: $130.67); Proxy statement (DEF 14A) for the 2026 annual meeting; Earnings release, Q1 fiscal 2027 (Form 8-K, Ex. 99.1) and 3 more
24How it got here
24How it got here
How did Oracle get here?
1977
Milestone
Founded
Larry Ellison founded Oracle in June 1977 and ran it as CEO until September 2014.
2014
Milestone
Ellison moves to Executive Chair
Safra Catz became CEO in September 2014; Ellison became Executive Chair and Chief Technology Officer.
2022
Business-model change
Cerner acquisition
Oracle bought Cerner, a provider of information systems for hospitals, on Jun 8, 2022 for $28.2 billion. Debt rose from $75.9 billion to $90.5 billion in FY2023.
2025
Business-model change
Backlog jumps on large cloud contracts
Remaining performance obligations rose from $137.8 billion at May 31, 2025 to $455.3 billion at Aug 31, 2025.
2025
Milestone
Two CEOs
Clayton Magouyrk and Michael Sicilia became co-CEOs on Sep 22, 2025; Safra Catz became Executive Vice Chair.
2025
Business-model change
Ampere stake sold
Oracle booked a $2.7 billion pre-tax gain in Q2 FY2026 on selling its chip company stake. Larry Ellison said designing its own chips was no longer strategic.
2026
Business-model change
Raising money to build
In February 2026 Oracle closed $25.0 billion of senior notes, issued $5.0 billion of preferred stock and signed a $20 billion share sale program.
2026
Milestone
Share sale completed
Oracle used all of the $20 billion program in Q1 FY2027, selling about 141 million shares for $19.9 billion net.
2026
Milestone
Investor Day statements
On Oct 28, 2026 Oracle set out FY2030 revenue of $225 billion or more, as its own statement, with capex peaking in FY2027 and FY2028.
25Sources and changes
Where every number on this page comes from
Sources (29 documents)
- S1Form 10-K, fiscal year 2026 (ended May 31, 2026) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jun 22, 2026
- S2Form 10-K, fiscal year 2025 (ended May 31, 2025) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jun 18, 2025
- S3Form 10-K, fiscal year 2024 (ended May 31, 2024) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jun 20, 2024
- S4Form 10-K, fiscal year 2023 (ended May 31, 2023) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jun 20, 2023
- S5Form 10-K, fiscal year 2022 (ended May 31, 2022) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jun 21, 2022
- S6Form 10-Q, Q1 fiscal 2027 (quarter ended Aug 31, 2026) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Sep 11, 2026
- S9Form 10-Q, Q1 fiscal 2026 (quarter ended Aug 31, 2025) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Sep 10, 2025
- S10Form 10-Q, Q3 fiscal 2025 (quarter ended Feb 28, 2025) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Mar 11, 2025
- S11Form 10-Q, Q2 fiscal 2025 (quarter ended Nov 30, 2024) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Dec 10, 2024
- S12Form 10-Q, Q1 fiscal 2025 (quarter ended Aug 31, 2024) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Sep 10, 2024
- S13Earnings release, Q1 fiscal 2027 (Form 8-K, Ex. 99.1) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Sep 10, 2026
- S14Earnings release, Q4 and fiscal 2026 (Form 8-K, Ex. 99.1) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jun 10, 2026
- S15Earnings release, Q3 fiscal 2026 (Form 8-K, Ex. 99.1) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Mar 10, 2026
- S16Earnings release, Q2 fiscal 2026 (Form 8-K, Ex. 99.1) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Dec 10, 2025
- S17Earnings release, Q1 fiscal 2026 (Form 8-K, Ex. 99.1) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Sep 9, 2025
- S18Earnings release, Q4 and fiscal 2025 (Form 8-K, Ex. 99.1) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jun 11, 2025
- S19Earnings release, Q3 fiscal 2025 (Form 8-K, Ex. 99.1) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Mar 10, 2025
- S20Earnings release, Q2 fiscal 2025 (Form 8-K, Ex. 99.1) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Dec 9, 2024
- S22Proxy statement (DEF 14A) for the 2026 annual meeting · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Sep 25, 2026
- S23Form 8-K, Item 7.01: Investor Day 2026 press release (Ex. 99.1) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Oct 28, 2026
- S24Form 8-K, Item 8.01: Larry Ellison cancels 10b5-1 plan (Ex. 99.1) · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Sep 14, 2026
- S26Form 8-K, Item 5.02: Hilary Maxson joins as CFO · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Apr 6, 2026
- S27Form 8-K, Items 1.01, 3.03, 5.03: Series D mandatory convertible preferred stock · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Feb 5, 2026
- S28Form 8-K, Items 1.01, 8.01: $20B at-the-market agreement and senior notes · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Feb 4, 2026
- S30Form 8-K, Item 5.02: co-CEOs named; Safra Catz becomes Executive Vice Chair · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Sep 22, 2025
- S31Form 8-K, Item 7.01: cloud contract statement · Oracle Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jun 30, 2025
- S32Schedule 13G/A, The Vanguard Group (event date Mar 13, 2026) · The Vanguard Group (SEC EDGAR) · Tier 1: company or exchange filing · Mar 27, 2026
- S34EDGAR submissions and XBRL company facts, CIK 0001341439 · SEC EDGAR (data.sec.gov) · Tier 1: company or exchange filing · Nov 1, 2026
- S35ORCL historical daily prices, Nasdaq's table for an NYSE-listed share (close of Oct 30, 2026: $130.67) · Nasdaq, Inc. · Tier 1: company or exchange filing · Oct 30, 2026
Changes to this page (v2 · Nov 1, 2026)
- v2 · Nov 1, 2026Standardized calculation labels to name the filing they come from; no figures changed. (editorial update, Q1 FY2027)
- v1 · Nov 1, 2026First version, through Q1 FY2027 (quarter ended Aug 31, 2026). (first version)
Numbers come only from tier 1 and tier 2 sources. Read how we research.
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