Common-Size Income Statement
Quarterly Data
Oracle Corp., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2026-08-31), 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).
The financial trajectory reflects a fundamental structural shift in revenue composition and cost management. A clear transition from legacy software and hardware toward cloud-based services is evident, accompanied by a compression of gross margins and an increase in operational efficiency within selling and research functions.
- Revenue Stream Transformation
- A systemic migration toward cloud services is observed. While cloud revenues represented approximately 42.26% of total revenues in August 2024, this figure escalated to 60.00% by August 2026. Conversely, software revenue declined from 43.33% to 28.69% over the same period. Hardware and services have seen a steady long-term decline, with hardware dropping from 8.69% of revenues in August 2020 to 4.00% by August 2026.
- Gross Profitability and Cost Structure
- Gross profit margins have experienced a significant downward trend, falling from a peak of 81.11% in May 2021 to 60.03% by August 2026. This compression is primarily driven by the rising cost of cloud and software delivery, which increased from 10.79% of revenues in August 2020 to 33.08% by August 2026. The costs associated with hardware and services have remained relatively stable or decreased as a percentage of revenue.
- Operating Expense Optimization
- There is a notable reduction in operating expenses as a percentage of total revenues, suggesting increased scale or tighter cost controls. Sales and marketing costs decreased from 19.79% in August 2020 to 9.36% by August 2026. Similarly, research and development expenditures fell from 16.96% to 12.41% over the same interval. General and administrative expenses also trended lower, moving from 3.15% to 1.94%.
- Operating Income and Net Profitability
- Operating income has remained resilient despite gross margin compression, finishing at 34.78% in August 2026. Significant volatility was noted in November 2021, where operating income dropped to -7.95% due to a substantial acquisition-related charge of 45.05% of revenues. Net income available to common shareholders has fluctuated, influenced by non-operating income spikes—most notably in November 2025—and varying tax provisions, settling at 24.19% in the final period analyzed.
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