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
Based on: 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), 10-K (reporting date: 2020-05-31).
- Revenue Trends
- Overall revenues have shown a steady increase over the observed period, rising from $39.1 billion in 2020 to $57.4 billion in 2025. The most significant driver of this growth is the "Cloud services and license support" segment, which increased substantially from $27.4 billion to $44.0 billion. In contrast, "Cloud license and on-premise license" revenues experienced a peak around 2022 before declining and stabilizing at a lower level by 2025. Hardware revenues gradually decreased from $3.4 billion to $2.9 billion. Services revenues more than doubled, especially after 2022, reaching over $5.2 billion in 2025, demonstrating a marked increase in that segment.
- Cost of Revenues and Gross Profit
- The cost of revenues has increased in absolute terms, rising from approximately $7.9 billion in 2020 to $16.9 billion in 2025. The largest absolute increase is seen in the cloud services segment where cost grew from about $4.0 billion to $11.6 billion, indicating higher expenses associated with the expanding cloud business. Despite rising costs, gross profit expanded from about $31.1 billion to $40.5 billion, suggesting improving profitability at the gross margin level.
- Operating Expenses
- Operating expenses generally increased over time. Sales and marketing expenses fluctuated slightly but remained around $8.3 to $8.7 billion. Research and development expenses rose steadily, moving from $6.1 billion in 2020 to $9.9 billion by 2025, reflecting increased investment in innovation and product development. General and administrative costs showed a moderate increase from $1.2 billion to $1.6 billion. Significant amortization of intangible assets was noticeable, with a peak in 2023 at $3.6 billion, then declining in subsequent years.
- Operating Income
- Operating income exhibited some volatility, initially increasing to $15.2 billion in 2021, then declining sharply in 2022 to $10.9 billion, followed by a steady recovery and growth to $17.7 billion by 2025. This pattern indicates an operational challenge around 2022 with a strong rebound in later years.
- Non-Operating Items and Taxes
- Interest expense rose consistently from $2.0 billion in 2020 to $3.6 billion in 2025, while interest income fluctuated but generally increased, reaching $578 million by 2025. Foreign currency losses remained relatively stable at a moderate level. Gains and losses from investments were variable, with losses apparent in the latter years, potentially impacting net income volatility. Non-operating income showed fluctuations but remained positive overall in recent years. Income tax provisions displayed inconsistent patterns, with some years showing benefits and others higher expense, affecting net income before noncontrolling interests.
- Net Income
- Net income experienced notable volatility, with a peak at $13.7 billion in 2021, followed by a sharp decrease to $6.7 billion in 2022, then recovering steadily to $12.4 billion by 2025. This trend mirrors fluctuations in operating income and non-operating factors, suggesting a period of earnings pressure in 2022 but resilience and recovery in later years. Noncontrolling interests consistently declined slightly over time but remained a minor component of net income.
- Summary of Financial Performance Patterns
- The company demonstrates a clear strategic shift towards cloud services as the primary revenue and profit driver, supported by growth in services and stable license revenues. Hardware revenues are in decline, suggesting de-emphasis or market pressure in that segment. Increased investment in research and development and higher amortization charges reflect ongoing acquisitions or capitalized expenditures. Operating efficiency challenged in 2022 but returned to growth thereafter. Overall, financial performance indicates robust growth, despite some cyclical pressures in operating and net income around 2022.