Operating Profit Margin
since 2005
Calculation
Oracle Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| May 31, 2026 | 30.59% | = | 100 | × | 20,606) | ÷ | 67,357) |
| May 31, 2025 | 30.80% | = | 100 | × | 17,678) | ÷ | 57,399) |
| May 31, 2024 | 28.99% | = | 100 | × | 15,353) | ÷ | 52,961) |
| May 31, 2023 | 26.21% | = | 100 | × | 13,093) | ÷ | 49,954) |
| May 31, 2022 | 25.74% | = | 100 | × | 10,926) | ÷ | 42,440) |
| May 31, 2021 | 37.58% | = | 100 | × | 15,213) | ÷ | 40,479) |
| May 31, 2020 | 35.57% | = | 100 | × | 13,896) | ÷ | 39,068) |
| May 31, 2019 | 34.26% | = | 100 | × | 13,535) | ÷ | 39,506) |
| May 31, 2018 | 34.34% | = | 100 | × | 13,679) | ÷ | 39,831) |
| May 31, 2017 | 33.69% | = | 100 | × | 12,710) | ÷ | 37,728) |
| May 31, 2016 | 34.02% | = | 100 | × | 12,604) | ÷ | 37,047) |
| May 31, 2015 | 36.29% | = | 100 | × | 13,871) | ÷ | 38,226) |
| May 31, 2014 | 38.56% | = | 100 | × | 14,759) | ÷ | 38,275) |
| May 31, 2013 | 39.49% | = | 100 | × | 14,684) | ÷ | 37,180) |
| May 31, 2012 | 36.92% | = | 100 | × | 13,706) | ÷ | 37,121) |
| May 31, 2011 | 33.78% | = | 100 | × | 12,033) | ÷ | 35,622) |
| May 31, 2010 | 33.79% | = | 100 | × | 9,062) | ÷ | 26,820) |
| May 31, 2009 | 35.79% | = | 100 | × | 8,321) | ÷ | 23,252) |
| May 31, 2008 | 34.97% | = | 100 | × | 7,844) | ÷ | 22,430) |
| May 31, 2007 | 33.20% | = | 100 | × | 5,974) | ÷ | 17,996) |
| May 31, 2006 | 32.93% | = | 100 | × | 4,736) | ÷ | 14,380) |
| May 31, 2005 | 34.09% | = | 100 | × | 4,022) | ÷ | 11,799) |
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), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).
1 US$ in millions
Analysis of the financial trajectory from 2005 to 2026 reveals a sustained expansion in total revenues accompanied by fluctuating operational efficiency. While revenues grew from 11,799 million USD in 2005 to a projected 67,357 million USD by 2026, the operating profit margin experienced distinct phases of expansion, stabilization, and subsequent compression.
- Revenue and Operating Income Trends
- A consistent upward trajectory in revenues is observed over the period, with significant acceleration occurring between 2010 and 2012, and again from 2022 onward. Operating income mirrored this growth for most of the timeline, increasing from 4,022 million USD in 2005 to 20,606 million USD by 2026, despite a notable contraction in 2022.
- Operational Efficiency Peak (2005–2021)
- Between 2005 and 2021, the operating profit margin remained relatively high and stable, generally fluctuating between 32% and 37%. A period of peak efficiency was reached between 2012 and 2014, with the margin peaking at 39.49% in 2013. This phase indicates a strong ability to scale operating income in proportion to revenue growth.
- Margin Compression and Recovery (2022–2026)
- A significant deviation in profitability occurred in 2022, when the operating profit margin dropped sharply to 25.74%, the lowest level recorded since 2005. This decline occurred despite an increase in revenue, suggesting a substantial rise in operating expenses during that fiscal year. From 2023 through 2026, a gradual recovery trend is evident, with the margin climbing back to 30.59%.
- Comparative Analysis of Scaling
- While the absolute operating income in 2026 is projected to be significantly higher than in 2014, the operating profit margin remains lower (30.59% vs 38.56%). This suggests that while the business has grown in size and absolute profit, the cost of generating that revenue has increased relative to the margins achieved during the 2012–2014 period.
AI Ask an analyst for more
Comparison to Competitors
Oracle Corp., operating profit margin, long-term trends, comparison to competitors
| Oracle Corp. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | Intuit Inc. | Microsoft Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| May 31, 2026 | 30.59% | — | — | — | — | -6.10% | — | — | — | — | — | 20.06% | — | — | 7.55% |
| May 31, 2025 | 30.80% | 14.68% | 36.63% | 75.75% | 28.17% | -3.05% | -1.29% | 26.14% | 45.62% | 31.59% | 13.48% | 19.01% | 13.74% | 12.97% | 4.91% |
| May 31, 2024 | 28.99% | 14.79% | 31.35% | 39.78% | 29.10% | -0.07% | 2.02% | 22.29% | 44.64% | 10.83% | 8.52% | 14.38% | 12.42% | 22.13% | 2.52% |
| May 31, 2023 | 26.21% | 13.74% | 34.26% | 19.74% | 30.59% | -8.48% | -1.57% | 21.86% | 41.77% | 5.39% | 5.62% | 3.29% | 8.49% | 21.72% | -3.57% |
| May 31, 2022 | 25.74% | 15.21% | 34.64% | -1.70% | 30.15% | -9.82% | -3.50% | 20.20% | 42.06% | -8.46% | -3.43% | 2.07% | 4.90% | 22.87% | -2.27% |
| May 31, 2021 | 37.58% | 15.08% | 36.76% | 5.37% | 26.07% | -10.58% | -1.86% | 25.95% | 41.59% | -26.66% | -7.15% | 2.14% | 4.36% | 17.48% | -5.76% |
| May 31, 2020 | 35.57% | 14.69% | 32.93% | — | 24.06% | -30.34% | -2.28% | 28.34% | 37.03% | -107.41% | -5.25% | 1.74% | 4.40% | 16.83% | -13.85% |
| May 31, 2019 | 34.26% | 14.59% | 29.25% | — | 21.05% | — | -5.55% | 27.33% | 34.14% | — | -1.87% | 4.03% | 1.22% | 15.48% | -16.42% |
| May 31, 2018 | 34.34% | 14.04% | 31.45% | — | 18.53% | — | — | 25.10% | 31.77% | — | -5.68% | 2.25% | -1.63% | 11.54% | -14.15% |
| May 31, 2017 | 33.69% | 12.60% | 29.69% | — | 16.67% | — | — | 26.95% | 24.82% | — | -10.21% | 0.77% | -5.25% | 12.76% | -24.00% |
| May 31, 2016 | 34.02% | 13.82% | 25.51% | — | 13.49% | — | — | 26.46% | 23.65% | — | -13.79% | 1.72% | -30.41% | 13.10% | -22.77% |
| May 31, 2015 | 36.29% | 13.48% | 18.83% | — | 16.77% | — | — | 17.60% | 19.41% | — | -14.39% | -2.71% | -16.55% | 11.88% | -27.38% |
| May 31, 2014 | 38.56% | 13.49% | 9.95% | — | 13.07% | — | — | 29.16% | 31.97% | — | -36.00% | -7.03% | -22.24% | 12.09% | -32.69% |
| May 31, 2013 | 39.49% | 14.27% | 10.42% | — | 12.94% | — | — | 29.56% | 34.38% | — | -4.70% | -3.63% | -15.61% | 12.56% | -43.07% |
| May 31, 2012 | 36.92% | 13.00% | 26.80% | — | 15.96% | — | — | 28.35% | 29.52% | — | 1.53% | -1.55% | -15.42% | 10.82% | — |
| May 31, 2011 | 33.78% | 12.69% | 26.07% | — | 10.47% | — | — | 26.15% | 38.83% | — | — | 5.88% | — | 13.86% | — |
| May 31, 2010 | 33.79% | 12.62% | 26.13% | — | -3.09% | — | — | 24.98% | 38.57% | — | — | 8.83% | — | 13.33% | — |
| May 31, 2009 | 35.79% | 11.41% | 23.44% | — | -14.50% | — | — | 21.43% | 34.85% | — | — | 5.92% | — | 15.31% | — |
| May 31, 2008 | 34.97% | 11.90% | 28.72% | — | -151.48% | — | — | 21.19% | 37.23% | — | — | 2.71% | — | 16.39% | — |
| May 31, 2007 | 33.20% | 11.62% | 27.16% | — | 19.68% | — | — | 23.85% | 36.23% | — | — | -0.72% | — | 9.74% | — |
| May 31, 2006 | 32.93% | 10.10% | 21.41% | — | 15.14% | — | — | 23.89% | 37.20% | — | — | 6.49% | — | 2.69% | — |
| May 31, 2005 | 34.09% | 12.35% | 37.05% | — | 8.94% | — | — | 25.72% | 36.60% | — | — | 3.70% | — | -5.34% | — |
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), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).