Oracle Corp. (NYSE:ORCL)

Gross Profit Margin

The gross profit margin remained relatively stable around 80% from August 2020 through May 2021. Starting August 2021, a steady decline is observed, dropping from approximately 80.22% to 69.66% by August 2025. This decline spans almost six years and reflects a gradual erosion of gross profitability over time.

Operating Profit Margin

The operating profit margin shows some volatility. Initial values from August 2020 to August 2021 fluctuated between 36.29% and 37.78%, with a sharp decline noted in November 2021, falling to 26.62%. It reached a low near 22.92% by August 2022, followed by a recovery trend to approximately 30.44% by August 2025. The recent gradual improvement suggests operational efficiencies or cost control measures may have been implemented after the dip.

Net Profit Margin

The net profit margin starts with moderate values near 26% in 2020, rising sharply to over 34% by May 2021. However, it declined significantly afterward, reaching a low point around 13.15% in August 2022. From that point, it rebounded steadily to stabilize between 20 and 22% by the last periods, indicating a recovery in overall profitability after an interval of compressed margins.

Return on Equity (ROE)

The ROE figures are highly volatile with several missing data points, making interpretation challenging. Initially, ROE rose sharply from 108% in August 2020 to a peak of 262% in May 2021. Although no data is available until May 2023, later periods show extremely high levels, peaking at 792% before progressively declining to 51.51% by August 2025. The fluctuations may reflect extraordinary changes in equity or net income levels and suggest periods of significant leverage or non-recurring events impacting equity returns.

Return on Assets (ROA)

The ROA shows a slight upward trend from 9.03% in August 2020 to a peak of 11.35% in May 2021 before declining to about 4.46% by August 2022. After this low point, ROA recovers gradually to a range of approximately 6.89% to 7.83% through August 2025. This pattern indicates an initial efficiency in asset utilization followed by a temporary weakening and subsequent moderate improvement, implying adjustments in asset management or profitability levels relative to total assets.

The financial data reveals several key trends regarding profitability and revenue generation over the analyzed periods. Revenues and gross profit values demonstrate general upward movement, while the gross profit margin exhibits a consistent decline over time.

Gross Profit

Gross profit shows an overall increasing trend from August 2020 through August 2025. The value rose from approximately 7.5 billion USD to over 10 billion USD by mid-2024, peaking beyond 11 billion USD in May 2025 before slightly decreasing towards August 2025. This growth suggests improving absolute profit levels, indicating successful revenue generation and cost management in nominal terms.

Revenues

Revenue figures similarly reflect a steady increase over the same timeframe. Beginning around 9.4 billion USD, revenues rose consistently to surpass 15.9 billion USD by May 2025. Despite some fluctuations, the general progression is upward, confirming expansion of sales or service delivery capabilities.

Gross Profit Margin

The gross profit margin percentage, which measures profitability relative to revenues, trends downward continuously. Starting near 80% in 2020, it gradually declined to approximately 70% by the later periods, reflecting a reduction in gross profitability relative to the revenue base. This indicates that cost of goods sold or other direct expenses are growing faster than revenues, reducing efficiency in converting sales dollars into profit.

In summary, while both revenues and gross profit have increased substantially over the reviewed quarters, the declining gross profit margin signals rising costs or pricing pressures that compress profit ratios. Maintaining strong revenue growth alongside shrinking margins points to an operational environment with increasing expenses or competitive factors impacting profitability.

The financial data reveals several notable trends in operating income, revenues, and operating profit margin over the reported periods.

Operating Income (Loss)

Operating income displayed a general cyclical pattern with significant fluctuations. It consistently increased from August 2020 through May 2021, peaking at 4541 million USD. Noteworthy is the sharp decline to a negative operating income of -824 million USD in November 2021, indicating a loss during that quarter. Following this loss, operating income rebounded strongly and showed volatility but an overall upward trend toward the most recent data point in August 2025, where it reached 4277 million USD. Peaks were observed around May 2024 (4685 million USD) and August 2025 (4277 million USD), with occasional mid-period dips.

Revenues

Revenues exhibited a steady upward trajectory throughout the entire timeline. Starting from 9367 million USD in August 2020, revenues increased overall with minor fluctuations, reaching 14926 million USD by August 2025. Occasional slight declines or plateaus occurred, for example in August 2021 and August 2022, but the general pattern was continued revenue growth. The highest revenue figure was recorded in May 2025 at 15903 million USD, indicating strong sales expansion or business scaling over the period.

Operating Profit Margin

The operating profit margin showed an initially high and stable range between approximately 36% to 38% through May 2021. This was followed by a pronounced drop in November 2021 to around 26%, corresponding with the operating loss in the same quarter. Subsequently, margins stabilized in the mid- to high-20s percentage range, fluctuating between approximately 22.9% and 31%. While the margin never returned to the initial high levels observed in 2020 and early 2021, it trended moderately upward from mid-2023 onward, reaching about 30.4% by August 2025.

In summary, the data portrays a company experiencing consistent revenue growth alongside volatile operating income and profit margin performance. The extraordinary operating loss during November 2021 interrupted what was otherwise a strong profitability trend, and subsequent quarters have shown recovery and gradual margin improvement. Overall, despite variability in operating income and profit margins, the upward revenue trend suggests expanding business operations and market presence over the analyzed timeframe.

The analysis of the quarterly financial metrics reveals several notable trends and fluctuations in profitability and revenue generation over the examined periods.

Net Income (Loss)

The net income exhibits significant variability, including both robust gains and periods of decline. The figure peaked early in the timeline around February 2021 at 5,021 million USD, followed by a sharp contraction to negative territory (-1,247 million USD) by November 2021. Subsequently, net income largely recovered and displayed a cyclical pattern with alternating rises and dips, reaching another considerable peak of 3,427 million USD in May 2025 before moderating to 2,927 million USD by August 2025. This volatility indicates phases of strong profitability interspersed with downturns, possibly reflecting operational or market challenges during certain quarters.

Revenues

Revenue figures show a general upward trend over the entire period. Starting from 9,367 million USD in August 2020, revenues increased steadily, with occasional minor fluctuations. Noteworthy jumps are observed around May 2021, where revenues reach 11,227 million USD, followed by continued growth peaking at 15,903 million USD in May 2025. Despite some quarterly decreases, the overall pattern reflects progressive expansion in revenue base, indicating strengthening sales or service uptake.

Net Profit Margin

The net profit margin, expressed as a percentage, displays a more complex trend with both rises and falls. Early quarters show an upward movement, peaking around 34.16% in August 2021. However, from that peak, the margin declined significantly to a low of 13.15% in August 2022, corresponding with periods where net income was comparatively strained. After this trough, the margin gradually improved again, stabilizing in the 18–22% range throughout the latest reported periods. This pattern suggests fluctuations in operational efficiency or cost structure impacting profitability relative to revenue.

In summary, the data indicates a company with generally growing revenue but facing volatility in net income and profit margins. Periods of exceptional profit margins and net income were followed by downturns, implying episodic challenges. More recently, despite some fluctuations, margins appear to have stabilized, and revenues continue to grow, signaling potential recovery or improved management of costs and revenues.

The financial data over the reported periods reveals significant fluctuations in key indicators including net income, stockholders’ equity, and return on equity (ROE).

Net Income (Loss)

Net income exhibits notable volatility throughout the periods. Initially, it ranges from a low of 1548 million US dollars to a high of 5021 million US dollars, with substantial fluctuations observed especially within 2020 to 2021. A pronounced loss of -1247 million US dollars is recorded in November 2021, indicating a challenging quarter. However, following this loss, net income recovers steadily, reaching higher values by mid-2023, peaking again in May 2025 at 3427 million US dollars before slightly declining to 2927 million US dollars in August 2025.

Total Stockholders’ Equity (Deficit)

Stockholders’ equity shows a critical shift from positive to negative territory between August 2020 and November 2021, descending from 9491 million US dollars to a deficit of -10,101 million US dollars. This downturn likely correlates with the net loss recorded in November 2021. After November 2021, equity levels gradually improve, crossing back into positive values by May 2023 and increasing consistently thereafter, reaching 24,154 million US dollars by August 2025. This signifies a substantial recovery in the company’s net assets over the latter periods.

Return on Equity (ROE)

ROE presents a highly irregular trend, with extremely high and variable percentages observed. Early in the timeline, ROE fluctuates from approximately 108% to 262%. Due to negative or missing equity values in several quarters, ROE data is unavailable or undefined in the intermediate periods. From May 2023 onward, ROE reappears with exceptionally high values, peaking at 792.45% before gradually declining to 51.51% by May 2025. This pattern suggests that ROE is influenced by low or negative equity bases during some periods, leading to distorted ratio outputs. The gradual decrease in ROE over time coincides with a strengthening equity base, providing a more normalized and possibly sustainable return measure.

Overall, the financial indicators reflect a period of substantial instability, marked by a significant equity deficit and a notable net loss in late 2021. Subsequently, there is a recovery phase characterized by improving profitability and restoration of positive equity. The extreme volatility in ROE highlights the sensitivity of this metric to fluctuating equity values, emphasizing the importance of considering both absolute numbers and ratio analyses for a comprehensive assessment.

Net Income (Loss) Trend

The net income exhibits considerable volatility over the analyzed period. Initial quarters show strong profitability with values peaking at 5021 million US dollars in February 2021. This is followed by a sharp decline into negative territory by November 2021, indicating a loss of 1247 million US dollars. Subsequently, earnings recover and fluctuate moderately, with a notable increase again in May 2023, reaching 3318 million US dollars. From that point onwards, net income remains relatively stable, oscillating around the 2400 to 3400 million US dollars range through the later quarters of 2024 and mid-2025, suggesting a stabilization after prior fluctuations.

Total Assets Evolution

Total assets display an overall upward trend from 113,546 million US dollars at the end of August 2020 to 180,449 million US dollars by August 2025. There is a slight decrease in late 2020 and early 2021, but the general trajectory is growth. Notably, asset levels increase more steeply from mid-2022 onwards, indicating possible investments or asset accumulation activities during this period, which aligns temporally with the recovery and stabilization of net income.

Return on Assets (ROA) Pattern

The ROA metric shows fluctuations that initially align with net income changes. Starting at 9.03% in August 2020, it peaks around 11.35% in August 2021 before dropping significantly to 4.46% in August 2022. Thereafter, ROA gradually improves, stabilizing in the range of approximately 6.8% to 7.8% through 2023 and 2024. By May 2025, it slightly declines to 6.89%. This pattern suggests that the company initially managed assets efficiently, faced some challenges reducing asset profitability, but then restored moderate efficiency levels consistent with improved income stability.

Overall Insights

The data indicates a period of financial instability marked by negative net income and declining ROA in late 2021, which was followed by a recovery phase characterized by increased net income and gradual improvement in asset efficiency. Meanwhile, total assets steadily increased, suggesting ongoing capital investment or asset acquisition throughout the timeframe. The stabilization of net income and ROA in later periods points towards enhanced operational performance and asset utilization, despite earlier volatility.