Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Oracle Corp., consolidated cash flow 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
Net income	17,087)	12,443)	10,467)	8,503)	6,717)	13,746)
Depreciation	7,623)	3,867)	3,129)	2,526)	1,972)	1,537)
Amortization of intangible assets	1,671)	2,307)	3,010)	3,582)	1,150)	1,379)
Deferred income taxes	(917)	(1,637)	(2,139)	(2,167)	(1,146)	(2,425)
Stock-based compensation	4,811)	4,674)	3,974)	3,547)	2,613)	1,837)
Gains from investments and other, net	(2,433)	667)	720)	661)	220)	(39)
(Increase) decrease in trade receivables, net	(2,190)	(653)	(965)	(151)	(874)	333)
(Increase) decrease in prepaid expenses and other assets	2,179)	266)	542)	317)	11)	622)
Increase (decrease) in accounts payable and other liabilities	(240)	(608)	(594)	(281)	(733)	(23)
Increase (decrease) in income taxes payable	(256)	(659)	(127)	(153)	(398)	(1,485)
Increase (decrease) in deferred revenues from customer prepayments with significant financing component	4,592)	—)	—)	—)	—)	—)
Increase (decrease) in other deferred revenues	50)	154)	656)	781)	7)	405)
Changes in operating assets and liabilities	4,135)	(1,500)	(488)	513)	(1,987)	(148)
Adjustments to reconcile net income to net cash provided by operating activities	14,890)	8,378)	8,206)	8,662)	2,822)	2,141)
Net cash provided by operating activities	31,977)	20,821)	18,673)	17,165)	9,539)	15,887)
Purchases of marketable securities and other investments and acquisitions	(2,039)	(1,272)	(1,066)	(28,902)	(10,420)	(38,023)
Proceeds from sales and maturities of marketable securities and other investments	5,848)	776)	572)	1,113)	26,151)	27,060)
Capital expenditures	(55,663)	(21,215)	(6,866)	(8,695)	(4,511)	(2,135)
Net cash (used for) provided by investing activities	(51,854)	(21,711)	(7,360)	(36,484)	11,220)	(13,098)
Proceeds from issuances of common stock	1,449)	653)	742)	1,192)	482)	1,786)
Payments for repurchases of common stock	(95)	(600)	(1,202)	(1,300)	(16,248)	(20,934)
Shares repurchased for tax withholdings upon vesting of restricted stock-based awards	(111)	(900)	(2,040)	(1,203)	(1,093)	(666)
Proceeds from issuances of senior notes, term loan credit agreements and other borrowings, net of issuance costs	4,954)	—)	—)	—)	—)	—)
Payments of dividends to stockholders	(5,787)	(4,743)	(4,391)	(3,668)	(3,457)	(3,063)
Proceeds from issuances (repayments) of commercial paper, net	(2,285)	1,889)	(167)	500)	—)	—)
Proceeds from short-term financing related to capital expenditures, net	3,345)	1,422)	—)	—)	—)	—)
Proceeds from issuances of senior notes, term loan credit agreements and other borrowings, net of issuance costs	46,093)	19,548)	—)	33,494)	—)	14,934)
Repayments of senior notes, term loan credit agreements and other borrowings	(6,942)	(15,841)	(3,500)	(21,050)	(8,250)	(2,631)
Other financing activities, net	(337)	(330)	4)	(55)	(560)	196)
Net cash provided by (used for) financing activities	40,284)	1,098)	(10,554)	7,910)	(29,126)	(10,378)
Effect of exchange rate changes on cash and cash equivalents	96)	124)	(70)	(209)	(348)	448)
Net increase (decrease) in cash and cash equivalents	20,503)	332)	689)	(11,618)	(8,715)	(7,141)
Cash and cash equivalents at beginning of period	10,786)	10,454)	9,765)	21,383)	30,098)	37,239)
Cash and cash equivalents at end of period	31,289)	10,786)	10,454)	9,765)	21,383)	30,098)

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).

Analysis of the cash flow patterns reveals a strategic shift toward aggressive infrastructure investment funded by increased debt leverage and strong operating cash generation.

Operating Cash Flow Trends: Net cash provided by operating activities demonstrates a general upward trajectory, rising from 15,887 million in 2021 to 31,977 million by 2026. While a contraction occurred in 2022, subsequent years show consistent growth. This trend is supported by a recovery in net income, which reaches 17,087 million in 2026, and a significant increase in depreciation expenses, which peak at 7,623 million in the final year, reflecting a growing base of fixed assets.
Investment Strategy and Capital Expenditure: A profound shift in investing activities is evident. Early periods were characterized by marketable securities and acquisitions, but there is a stark escalation in capital expenditures. CapEx increases from 2,135 million in 2021 to 55,663 million in 2026. This suggests a massive pivot toward physical infrastructure development. Consequently, net cash used in investing activities expands to 51,854 million in 2026.
Financing and Capital Structure: Financing activities show a transition from shareholder returns via buybacks to debt-funded growth. Payments for repurchases of common stock were substantial in 2021 and 2022 (20,934 million and 16,248 million, respectively) but declined sharply thereafter. To sustain the surge in capital expenditures, the company significantly increased borrowings, with proceeds from senior notes and other borrowings reaching 46,093 million in 2026. Dividends have maintained a steady upward trend, growing from 3,063 million in 2021 to 5,787 million in 2026.
Liquidity and Cash Position: The cash and cash equivalents balance experienced a steady decline from 37,239 million at the start of 2021 to a low of 9,765 million by May 2023. However, the cash position recovers sharply to 31,289 million by May 2026, primarily driven by the massive influx of financing activities used to offset the heavy capital investment cycle.

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Oracle Corp. (NYSE:ORCL)

Cash Flow Statement