Common-Size Income Statement
Quarterly Data
Oracle Corp., common-size consolidated income statement (quarterly data)
Based on: 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
An analysis of the common-size income statement reveals a strategic transition in the revenue mix and a corresponding shift in the cost structure over the observed period. There is a clear migration from traditional software licensing and hardware toward cloud-based services, which has significantly influenced margin profiles.
- Revenue Composition and Segment Shifts
- A transition in revenue reporting is evident, with a late-stage pivot toward distinct Cloud and Software categories. Cloud revenue grew from 48.14% in August 2025 to 51.86% by February 2026, while Software revenue declined from 38.33% to 35.60% in the same window. Hardware revenues exhibited a consistent downward trend, decreasing from 8.69% in August 2020 to 4.82% by May 2026. Services remained relatively stable, fluctuating between 6% and 11% of total revenues.
- Gross Profitability and Cost of Revenue
- Gross profit margins experienced steady compression over the analyzed timeframe. Gross profit fell from a peak of approximately 81.11% in May 2021 to 65.22% by May 2026. This decline is directly attributed to an increase in the cost of revenues, which rose from approximately 20% in 2020 to 34.78% by May 2026. The increase is most pronounced in the cloud and software cost component, which expanded from -10.79% in August 2020 to -27.23% by May 2026, suggesting higher operational costs associated with cloud infrastructure.
- Operating Expense Trends
- Operating expenses show a pattern of optimization. Sales and marketing expenses as a percentage of revenue declined significantly from 19.79% in August 2020 to 10.78% in May 2026. Research and development costs remained more stable, generally hovering between 13% and 18%. General and administrative expenses remained consistently low, typically between 2% and 3% of revenue. A notable spike in amortization of intangible assets occurred in August 2022 (-8.03%), followed by a gradual decline to -2.25% by May 2026.
- Operating and Net Income Performance
- Operating income margins remained generally resilient despite gross margin compression, typically ranging between 22% and 40%. A significant outlier occurred in November 2021, where operating income dropped to -7.95% due to a one-time acquisition-related expense of -45.05% of revenues. Net income margins were volatile, influenced by tax provisions and non-operating items, with a significant peak of 38.21% in November 2025 driven by a surge in non-operating income (16.61%). Excluding anomalies, net income typically fluctuated between 18% and 26% of total revenues.
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