While revenue growth has surged to 29.6% in 2027Q1, this has been accompanied by a significant gross margin erosion to 60.0% from 72.5% ten quarters prior, suggesting the current expansion is prioritizing scale over profitability.
Oracle Corporation (ORCL) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | May'26 | May'25 | May'24 | May'23 | May'22 | May'21 | May'20 | May'19 | May'18 | May'17 | May'16 | May'15 | May'14 | May'13 | May'12 | May'11 | May'10 | May'09 | May'08 | May'07 | May'06 | May'05 | May'04 | May'03 | May'02 | May'01 | May'00 | May'99 | May'98 | May'97 |
|---|
| Sales/Revenue | 71.78B | 67.36B | 57.4B | 52.96B | 49.95B | 42.44B | 40.48B | 39.07B | 39.51B | 39.83B | 37.73B | 37.05B | 38.23B | 38.27B | 37.18B | 37.12B | 35.62B | 26.82B | 23.25B | 22.43B | 18B | 14.38B | 11.8B | 10.16B | 9.47B | 9.67B | 10.86B | 10.13B | 8.83B | 7.14B | 5.68B |
| Revenue Growth % | 21.62% | 17.35% | 8.38% | 6.02% | 17.71% | 4.84% | 3.61% | -1.11% | -0.82% | 5.57% | 1.84% | -3.08% | -0.13% | 2.95% | 0.16% | 4.21% | 32.82% | 15.34% | 3.66% | 24.64% | 25.15% | 21.87% | 16.18% | 7.19% | -2.05% | -10.93% | 7.2% | 14.76% | 23.56% | 25.68% | 34.59% |
| Cost of Goods Sold | 25.88B | 23.44B | 16.93B | 15.14B | 13.56B | 8.88B | 7.86B | 7.94B | 8B | 8.06B | 7.45B | 7.48B | 7.53B | 7.24B | 7.38B | 8B | 8.4B | 5.76B | 4.79B | 4.98B | 4.19B | 3.23B | 2.65B | 2.32B | 2.34B | 2.41B | 2.8B | 2.94B | 3.06B | 2.27B | 1.55B |
| COGS % of Revenue | - | 34.8% | 29.49% | 28.59% | 27.15% | 20.92% | 19.41% | 20.32% | 20.24% | 20.24% | 19.75% | 20.19% | 19.7% | 18.91% | 19.85% | 21.54% | 23.58% | 21.49% | 20.62% | 22.21% | 23.29% | 22.5% | 22.47% | 22.81% | 24.72% | 24.87% | 25.75% | 29.05% | 34.71% | 31.83% | 27.28% |
| Gross Profit | 45.9B | 43.92B | 40.47B | 37.82B | 36.39B | 33.56B | 32.62B | 31.13B | 31.51B | 31.77B | 30.28B | 29.57B | 30.69B | 31.04B | 29.8B | 29.13B | 27.22B | 21.06B | 18.46B | 17.45B | 13.8B | 11.14B | 9.15B | 7.84B | 7.13B | 7.27B | 8.06B | 7.19B | 5.76B | 4.87B | 4.13B |
| Gross Margin % | 63.95% | 65.2% | 70.51% | 71.41% | 72.85% | 79.08% | 80.59% | 79.68% | 79.76% | 79.76% | 80.25% | 79.81% | 80.3% | 81.09% | 80.15% | 78.46% | 76.42% | 78.51% | 79.38% | 77.79% | 76.71% | 77.5% | 77.53% | 77.19% | 75.28% | 75.13% | 74.25% | 70.95% | 65.29% | 68.17% | 72.72% |
| Gross Profit Growth % | - | 8.51% | 7.02% | 3.92% | 8.42% | 2.88% | 4.8% | -1.21% | -0.82% | 4.94% | 2.39% | -3.67% | -1.11% | 4.15% | 2.32% | 6.99% | 29.29% | 14.08% | 5.78% | 26.4% | 23.87% | 21.83% | 16.7% | 9.9% | -1.84% | -9.88% | 12.19% | 24.71% | 18.33% | 17.81% | 32.19% |
| Operating Expenses | 22.68B | 23.14B | 22.79B | 22.46B | 23.3B | 22.64B | 17.41B | 17.23B | 17.98B | 18.08B | 17.43B | 16.96B | 16.82B | 16.28B | 15.12B | 15.42B | 15.19B | 11.99B | 10.14B | 9.61B | 7.83B | 6.41B | 5.13B | 3.98B | 3.69B | 3.7B | 4.29B | 4.11B | 3.89B | 3.46B | 2.83B |
| OpEx % of Revenue | - | 34.36% | 39.71% | 42.42% | 46.64% | 53.34% | 43.01% | 44.11% | 45.5% | 45.38% | 46.19% | 45.79% | 44.01% | 42.53% | 40.66% | 41.54% | 42.64% | 44.72% | 43.6% | 42.82% | 43.52% | 44.57% | 43.44% | 39.14% | 38.98% | 38.21% | 39.47% | 40.55% | 44.07% | 48.42% | 49.86% |
| Selling, General & Admin | 9.7B | 9.95B | 10.25B | 9.82B | 10.41B | 9.36B | 8.94B | 9.28B | 9.77B | 9.71B | 9.3B | 9.04B | 8.73B | 8.61B | 8.13B | 8.12B | 7.55B | 5.99B | 5.42B | 5.49B | 4.6B | 3.73B | 3.06B | 2.63B | 2.51B | 2.62B | 3.15B | 3.1B | 3.05B | 2.74B | 2.28B |
| SG&A % of Revenue | - | 14.77% | 17.86% | 18.55% | 20.84% | 22.06% | 22.08% | 23.74% | 24.74% | 24.39% | 24.65% | 24.4% | 22.84% | 22.48% | 21.88% | 21.86% | 21.19% | 22.34% | 23.32% | 24.46% | 25.56% | 25.95% | 25.94% | 25.91% | 26.52% | 27.09% | 28.99% | 30.58% | 34.54% | 38.35% | 40.09% |
| Research & Development | 10.18B | 10.27B | 9.86B | 8.91B | 8.62B | 7.22B | 6.53B | 6.07B | 6.03B | 6.08B | 6.15B | 5.79B | 5.52B | 5.15B | 4.85B | 4.52B | 4.52B | 3.25B | 2.77B | 2.74B | 2.19B | 1.87B | 1.49B | 1.28B | 1.18B | 1.08B | 1.14B | 1.01B | 841.41M | 719.14M | 555.48M |
| R&D % of Revenue | - | 15.25% | 17.18% | 16.83% | 17.26% | 17.01% | 16.12% | 15.53% | 15.25% | 15.27% | 16.31% | 15.62% | 14.45% | 13.46% | 13.04% | 12.18% | 12.69% | 12.13% | 11.9% | 12.22% | 12.2% | 13.02% | 12.64% | 12.58% | 12.45% | 11.12% | 10.48% | 9.97% | 9.53% | 10.07% | 9.77% |
| Other Operating Expenses | 4M | 2.92B | 2.68B | 3.73B | 4.26B | 6.05B | 1.95B | 1.89B | 2.18B | 2.26B | 2.02B | 2.14B | 2.57B | 2.52B | 2.13B | 2.78B | 3.12B | 2.75B | 1.95B | 1.38B | 1.04B | 805M | 574M | 90M | 0 | 0 | 0 | 0 | 0 | 167.05M | 36.8M |
| Operating Income | 23.23B | 20.78B | 17.68B | 15.35B | 13.09B | 10.93B | 15.21B | 13.9B | 13.54B | 13.26B | 12.91B | 12.6B | 13.87B | 14.76B | 14.43B | 13.71B | 12.03B | 9.06B | 8.32B | 7.84B | 5.97B | 4.74B | 4.02B | 3.86B | 3.44B | 3.57B | 3.78B | 3.08B | 1.87B | 1.24B | 1.26B |
| Operating Margin % | 32.36% | 30.85% | 30.8% | 28.99% | 26.21% | 25.74% | 37.58% | 35.57% | 34.26% | 33.3% | 34.23% | 34.02% | 36.29% | 38.56% | 38.82% | 36.92% | 33.78% | 33.79% | 35.79% | 34.97% | 33.2% | 32.93% | 34.09% | 38.05% | 36.31% | 36.92% | 34.78% | 30.41% | 21.22% | 17.42% | 22.22% |
| Operating Income Growth % | - | 17.54% | 15.14% | 17.26% | 19.83% | -28.18% | 9.48% | 2.67% | 2.04% | 2.72% | 2.45% | -9.13% | -6.02% | 2.27% | 5.3% | 13.9% | 32.79% | 8.91% | 6.08% | 31.3% | 26.14% | 17.75% | 4.09% | 12.33% | -3.67% | -5.46% | 22.63% | 64.46% | 50.53% | -1.49% | 39.57% |
| EBITDA | 34.11B | 28.72B | 23.85B | 21.49B | 19.2B | 14.05B | 18.13B | 16.86B | 16.45B | 16.05B | 15.36B | 15.11B | 16.73B | 17.67B | 17.36B | 16.62B | 14.83B | 11.33B | 10.3B | 9.32B | 7.1B | 5.59B | 4.45B | 4.1B | 3.77B | 3.93B | 4.12B | 3.47B | 2.25B | 1.57B | 1.53B |
| EBITDA Margin % | 47.52% | 42.64% | 41.55% | 40.58% | 38.44% | 33.1% | 44.79% | 43.17% | 41.65% | 40.29% | 40.72% | 40.79% | 43.77% | 46.16% | 46.7% | 44.78% | 41.63% | 42.26% | 44.28% | 41.57% | 39.46% | 38.88% | 37.69% | 40.35% | 39.76% | 40.67% | 37.98% | 34.27% | 25.47% | 22.02% | 26.88% |
| EBITDA Growth % | 47.48% | 20.42% | 10.98% | 11.93% | 36.68% | -22.51% | 7.5% | 2.49% | 2.52% | 4.46% | 1.66% | -9.68% | -5.29% | 1.75% | 4.46% | 12.09% | 30.85% | 10.06% | 10.44% | 31.31% | 27.01% | 25.73% | 8.52% | 8.79% | -4.25% | -4.61% | 18.81% | 54.39% | 42.95% | 2.95% | 35.88% |
| D&A (Non-Cash Add-back) | 10.88B | 7.94B | 6.17B | 6.14B | 6.11B | 3.12B | 2.92B | 2.97B | 2.92B | 2.79B | 2.45B | 2.51B | 2.86B | 2.91B | 2.93B | 2.92B | 2.8B | 2.27B | 1.98B | 1.48B | 1.13B | 855M | 425M | 234M | 327M | 363M | 346.9M | 390.93M | 375.38M | 328.56M | 264.77M |
| EBIT | 26.84B | 24.19B | 17.74B | 15.26B | 12.63B | 10.4B | 15.49B | 14.06B | 14.35B | 14.45B | 13.48B | 12.91B | 13.98B | 14.62B | 14.7B | 13.73B | 12.22B | 9B | 8.46B | 8.23B | 6.13B | 4.96B | 4.38B | 3.92B | 3.44B | 3.57B | 3.78B | 3.08B | 1.87B | 1.41B | 1.3B |
| Net Interest Income | -3.73B | -3.46B | -3B | -3.06B | -3.22B | -2.66B | -2.4B | -1.47B | -990M | -822M | -994M | -929M | -794M | -651M | -560M | -535M | -645M | -632M | -351M | -394M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 1.37B | 1.14B | 578M | 451M | 285M | 94M | 101M | 527M | 1.09B | 1.2B | 802M | 538M | 349M | 263M | 237M | 231M | 163M | 122M | 279M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 5.1B | 4.6B | 3.58B | 3.51B | 3.5B | 2.75B | 2.5B | 2B | 2.08B | 2.02B | 1.8B | 1.47B | 1.14B | 914M | 797M | 766M | 808M | 754M | 630M | 394M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -1.44B | -1.17B | -3.52B | -3.61B | -3.97B | -3.28B | -2.21B | -1.83B | -1.27B | -840M | -1.23B | -1.16B | -1.04B | -1.05B | -534M | -744M | -622M | -819M | -487M | -10M | 12M | 74M | 29M | 81M | -15M | -163M | 193.91M | 7.04B | 109.2M | 83.62M | 20.54M |
| Pretax Income | 21.79B | 19.61B | 14.16B | 11.74B | 9.13B | 7.65B | 13B | 12.06B | 12.27B | 12.42B | 11.68B | 11.44B | 12.83B | 13.7B | 13.9B | 12.96B | 11.41B | 8.24B | 7.83B | 7.83B | 5.99B | 4.81B | 4.05B | 3.94B | 3.42B | 3.41B | 3.97B | 10.12B | 1.98B | 1.33B | 1.28B |
| Pretax Margin % | 30.36% | 29.11% | 24.67% | 22.17% | 18.27% | 18.02% | 32.11% | 30.88% | 31.05% | 31.19% | 30.96% | 30.89% | 33.57% | 35.8% | 37.38% | 34.92% | 32.03% | 30.73% | 33.69% | 34.93% | 33.26% | 33.45% | 34.33% | 38.84% | 36.15% | 35.23% | 36.57% | 99.93% | 22.45% | 18.59% | 22.58% |
| Income Tax | 2.81B | 2.47B | 1.72B | 1.27B | 623M | 932M | -747M | 1.93B | 1.19B | 8.84B | 2.23B | 2.54B | 2.9B | 2.75B | 2.97B | 2.98B | 2.86B | 2.11B | 2.24B | 2.31B | 1.71B | 1.43B | 1.17B | 1.26B | 1.12B | 1.18B | 1.41B | 3.83B | 692.32M | 514.12M | 462.07M |
| Effective Tax Rate % | 12.92% | 12.59% | 12.13% | 10.85% | 6.83% | 12.18% | -5.75% | 15.98% | 9.66% | 71.13% | 19.08% | 22.21% | 22.57% | 20.06% | 21.39% | 23% | 25.1% | 25.57% | 28.61% | 29.53% | 28.6% | 29.71% | 28.76% | 32.04% | 32.64% | 34.74% | 35.51% | 37.8% | 34.93% | 38.72% | 36% |
| Net Income | 18.92B | 17.09B | 12.44B | 10.47B | 8.5B | 6.72B | 13.75B | 10.13B | 11.08B | 3.59B | 9.45B | 8.9B | 9.94B | 10.96B | 10.93B | 9.98B | 8.55B | 6.13B | 5.59B | 5.52B | 4.27B | 3.38B | 2.89B | 2.68B | 2.31B | 2.22B | 2.56B | 6.3B | 1.29B | 813.7M | 821.46M |
| Net Margin % | 26.36% | 25.37% | 21.68% | 19.76% | 17.02% | 15.83% | 33.96% | 25.94% | 28.05% | 9.01% | 25.05% | 24.03% | 26% | 28.62% | 29.38% | 26.89% | 23.99% | 22.87% | 24.05% | 24.61% | 23.75% | 23.51% | 24.46% | 26.4% | 24.35% | 22.99% | 23.58% | 62.16% | 14.61% | 11.39% | 14.45% |
| Net Income Growth % | 52.08% | 37.32% | 18.88% | 23.1% | 26.59% | -51.13% | 35.63% | -8.55% | 208.98% | -62.05% | 6.19% | -10.43% | -9.28% | 0.27% | 9.46% | 16.78% | 39.32% | 9.69% | 1.3% | 29.18% | 26.41% | 17.15% | 7.65% | 16.21% | 3.73% | -13.16% | -59.33% | 388.22% | 58.51% | -0.94% | 36.17% |
| Net Income (Continuing) | 18.97B | 17.14B | 12.44B | 10.47B | 8.5B | 6.72B | 13.75B | 10.13B | 11.08B | 3.59B | 9.45B | 8.9B | 9.94B | 10.96B | 10.93B | 9.98B | 8.55B | 6.13B | 5.59B | 5.52B | 4.27B | 3.38B | 2.89B | 2.68B | 2.31B | 2.22B | 2.56B | 6.3B | 1.29B | 813.7M | 821.46M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 424M | 0 | 518M | 535M | 483M | 452M | 714M | 643M | 578M | 498M | 386M | 501M | 435M | 569M | 497M | 399M | 469M | 401M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 6.31 | 5.83 | 4.34 | 3.71 | 3.07 | 2.41 | 4.55 | 3.08 | 2.97 | 0.85 | 2.21 | 2.07 | 2.21 | 2.38 | 2.26 | 1.96 | 1.67 | 1.21 | 1.09 | 1.06 | 0.81 | 0.64 | 0.55 | 0.50 | 0.43 | 0.39 | 0.44 | 1.05 | 0.22 | 0.14 | 0.14 |
| EPS Growth % | 47.69% | 34.33% | 16.98% | 20.85% | 27.39% | -47.03% | 47.73% | 3.7% | 249.41% | -61.54% | 6.76% | -6.33% | -7.14% | 5.31% | 15.31% | 17.37% | 38.02% | 11.01% | 2.83% | 30.86% | 26.56% | 16.36% | 10% | 16.28% | 10.26% | -11.36% | -58.1% | 377.27% | 57.14% | 0% | 40% |
| EPS (Basic) | - | 5.94 | 4.46 | 3.81 | 3.15 | 2.49 | 4.67 | 3.16 | 3.05 | 0.87 | 2.27 | 2.11 | 2.26 | 2.42 | 2.29 | 1.99 | 1.69 | 1.22 | 1.10 | 1.08 | 0.83 | 0.65 | 0.56 | 0.51 | 0.44 | 0.40 | 0.46 | 1.11 | 0.23 | 0.14 | 0.14 |
| Diluted Shares Outstanding | 3B | 2.92B | 2.87B | 2.82B | 2.77B | 2.79B | 3.02B | 3.29B | 3.73B | 4.24B | 4.22B | 4.3B | 4.5B | 4.6B | 4.84B | 5.09B | 5.13B | 5.07B | 5.13B | 5.23B | 5.27B | 5.29B | 5.23B | 5.33B | 5.42B | 5.69B | 5.87B | 6B | 5.94B | 6B | 6.06B |
| Basic Shares Outstanding | 2.97B | 2.88B | 2.79B | 2.74B | 2.7B | 2.7B | 2.94B | 3.21B | 3.63B | 4.12B | 4.12B | 4.3B | 4.4B | 4.6B | 4.83B | 5.01B | 5.05B | 5.01B | 5.07B | 5.13B | 5.17B | 5.2B | 5.14B | 5.21B | 5.3B | 5.52B | 5.6B | 5.68B | 5.78B | 5.87B | 5.91B |
| Dividend Payout Ratio | - | 33.87% | 38.12% | 41.95% | 43.14% | 51.47% | 22.28% | 30.29% | 26.45% | 87.54% | 27.84% | 28.55% | 22.69% | 19.88% | 13.12% | 12.07% | 12.41% | 16.37% | 4.47% | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ORCL stock.
For fiscal year 2026, Oracle Corporation (ORCL) reported total revenue of $67.36B. This represents a 1085.0% increase compared to $5.68B in 1997.
Oracle Corporation (ORCL) is profitable, generating $17.09B in net income for the fiscal year ending 2026 with a net profit margin of 25.4%.
Oracle Corporation (ORCL) reported an operating income of $20.78B, resulting in an operating profit margin of 30.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Oracle Corporation (ORCL) generated $43.92B in gross profit for the year, representing a gross profit margin of 65.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression from rapid scaling
Metrics are mathematically derived from official filings.
Cloud Growth Ignites Revenue Momentum
Oracle's revenue growth has accelerated sharply, rising from 3.3% year-over-year in 2024Q4 to 29.6% in 2027Q1, indicating a successful transition to its cloud infrastructure and applications platform.
The acceleration is driven by a combination of volume and pricing in the cloud segment, as the company moves away from its legacy license model. This top-line momentum suggests the strategic pivot is gaining commercial traction and may indicate a more durable growth profile than seen in the preceding decade.
Gross Margin Erosion Under Strategic Shift
Oracle's gross margin has contracted significantly from 72.5% in 2024Q4 to 60.0% in 2027Q1, a trend that warrants monitoring as the company prioritizes growth over near-term profitability.
This 1,250 basis point decline appears to be a structural consequence of scaling capital-intensive cloud infrastructure, which carries higher direct costs than software licensing. While the company is sacrificing near-term margins to capture market share, investors should monitor whether the margin profile stabilizes as the cloud business achieves greater scale and operating efficiency.
Operating Leverage Masks Underlying Margin Pressure
While operating income has grown, the operating margin has compressed from 32.8% in 2024Q4 to 34.8% in 2027Q1, suggesting that SG&A and R&D scaling is partially offsetting the benefits of higher revenue.
The slight operating margin expansion in the latest quarter is notable given the gross margin headwind, implying some efficiency gains in overhead. However, the long-term trend shows operating margin below pre-transition levels, indicating that management has not yet fully translated revenue scale into bottom-line profitability, a dynamic that may persist until the cloud business matures.
Unsustainable Growth and Margin Trade-Off
The core challenge to Oracle's narrative is whether the recent revenue surge, which boosted EPS growth to 54.5% in 2027Q1, can be maintained without causing further and permanent margin degradation.
Short-sellers would focus on the sharp decline in gross margin, arguing that the cloud transition is being fueled by unsustainable discounting or high customer acquisition costs. The risk is that the current growth rate is transient, leaving Oracle with a lower-margin, more competitive business that struggles to generate the operating cash flow needed to service its debt and fund its massive capital expenditure plans.