Name: Oracle Corp. (NYSE:ORCL) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Oracle Corp., consolidated income statement

US$ in millions

12 months ended:	May 31, 2026	May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Cloud	33,989)	24,506)	19,774)	—)	—)	—)
Software	24,541)	24,724)	24,690)	—)	—)	—)
Cloud services and license support	—)	—)	—)	35,307)	30,174)	28,700)
Cloud license and on-premise license	—)	—)	—)	5,779)	5,878)	5,399)
Hardware	3,084)	2,936)	3,066)	3,274)	3,183)	3,359)
Services	5,743)	5,233)	5,431)	5,594)	3,205)	3,021)
Revenues	67,357)	57,399)	52,961)	49,954)	42,440)	40,479)
Cloud and software (previously: Cloud services and license support)	(17,597)	(11,569)	(9,427)	(7,763)	(5,213)	(4,353)
Hardware	(868)	(782)	(891)	(1,040)	(972)	(972)
Services	(4,556)	(4,576)	(4,825)	(4,761)	(2,692)	(2,530)
Cost of revenues	(23,021)	(16,927)	(15,143)	(13,564)	(8,877)	(7,855)
Gross profit	44,336)	40,472)	37,818)	36,390)	33,563)	32,624)
Sales and marketing	(8,331)	(8,651)	(8,274)	(8,833)	(8,047)	(7,682)
Research and development	(10,272)	(9,860)	(8,915)	(8,623)	(7,219)	(6,527)
General and administrative	(1,618)	(1,602)	(1,548)	(1,579)	(1,317)	(1,254)
Amortization of intangible assets	(1,671)	(2,307)	(3,010)	(3,582)	(1,150)	(1,379)
Restructuring	(1,779)	(299)	(404)	(490)	(191)	(431)
Other, net	(59)	(75)	(314)	(190)	(4,713)	(138)
Restructuring and other	(1,838)	(374)	(718)	(680)	(4,904)	(569)
Operating income	20,606)	17,678)	15,353)	13,093)	10,926)	15,213)
Interest expense	(4,599)	(3,578)	(3,514)	(3,505)	(2,755)	(2,496)
Interest income	780)	578)	451)	285)	94)	101)
Foreign currency losses, net	(131)	(147)	(228)	(249)	(199)	(112)
Gains (losses) from marketable and non-marketable investments, net	2,811)	(278)	(303)	(327)	(147)	262)
Other income (expenses), net	309)	91)	168)	(6)	(86)	211)
Non-operating income (expenses), net, excluding noncontrolling interests in income	3,769)	244)	88)	(297)	(338)	462)
Income before income taxes and noncontrolling interests in income	19,776)	14,344)	11,927)	9,291)	7,833)	13,179)
(Provision for) benefit from income taxes	(2,467)	(1,717)	(1,274)	(623)	(932)	747)
Net income before noncontrolling interests in income	17,309)	12,627)	10,653)	8,668)	6,901)	13,926)
Noncontrolling interests in income	(222)	(184)	(186)	(165)	(184)	(180)
Net income	17,087)	12,443)	10,467)	8,503)	6,717)	13,746)
Preferred stock dividends	(103)	—)	—)	—)	—)	—)
Net income available to common shareholders	16,984)	12,443)	10,467)	8,503)	6,717)	13,746)

Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).

Revenues demonstrate a consistent upward trajectory, growing from 40.48 billion USD in 2021 to 67.36 billion USD by 2026. This growth is characterized by a strategic transition in the revenue mix; while software and hardware streams remain relatively stagnant, Cloud revenues exhibit rapid acceleration, increasing from 19.77 billion USD in 2024 to 33.99 billion USD by 2026. Services also show a positive trend, nearly doubling from 3.02 billion USD in 2021 to 5.74 billion USD in 2026.

Gross Profitability and Cost Structure: Gross profit grew from 32.62 billion USD in 2021 to 44.34 billion USD in 2026. However, this growth is accompanied by a significant rise in the cost of revenues, which climbed from 7.86 billion USD to 23.02 billion USD over the same period. The most substantial increase is observed in the costs associated with cloud and software, which rose from 4.35 billion USD in 2021 to 17.60 billion USD in 2026, indicating that scaling cloud infrastructure has required substantial capital and operational investment.
Operating Expenditure Trends: Research and development expenses show a steady and intentional increase, rising from 6.53 billion USD in 2021 to 10.27 billion USD in 2026, suggesting a prioritization of technical innovation. Sales and marketing costs remained relatively stable, fluctuating between 7.68 billion USD and 8.83 billion USD. A notable spike in restructuring costs occurred in 2026, reaching 1.78 billion USD, compared to a low of 191 million USD in 2022.
Operating and Net Income Performance: Operating income experienced a contraction in 2022, falling to 10.93 billion USD, but recovered strongly to reach 20.61 billion USD by 2026. Net income followed a similar pattern of volatility, dipping to 6.72 billion USD in 2022 before ascending to 17.09 billion USD in 2026. The 2026 performance was significantly bolstered by a 2.81 billion USD gain from marketable and non-marketable investments.
Financial Obligations and Non-Operating Items: Interest expenses show a clear upward trend, increasing from 2.50 billion USD in 2021 to 4.60 billion USD in 2026, reflecting higher debt servicing requirements. This is partially mitigated by a growth in interest income, which rose from 101 million USD in 2021 to 780 million USD in 2026. The overall impact of non-operating income, excluding noncontrolling interests, saw a dramatic increase to 3.77 billion USD in 2026, primarily due to the aforementioned investment gains.

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