Oracle Corp. (NYSE:ORCL)

Gross profit margin

The gross profit margin shows a generally decreasing trend over the analyzed periods. Starting from around 79.68% in the mid-2019 period, it peaked slightly above 80% during late 2019 and early 2021. However, from 2021 onwards, the margin steadily declined, reaching approximately 70.51% by mid-2025. This indicates a gradual increase in cost of goods sold relative to revenue over time.

Operating profit margin

The operating profit margin exhibits a fluctuating pattern with an initial strong performance around the 35%-38% range from late 2019 through early 2021. It then experienced a considerable decline to the low to mid-twenties in 2021 and early 2022. Subsequently, there is a recovery trend, with margins increasing progressively to about 30.8% by the mid-2025 period. This fluctuation suggests variability in operating expenses or revenue impacts during the period.

Net profit margin

The net profit margin follows a pattern similar to the operating profit margin, with an initial increase from approximately 25.94% in late 2019 to above 34% by early 2021. Thereafter, a marked decrease occurred, dropping below 14% in mid-2022. From that point, the margin gradually recovered, achieving slightly above 21% by mid-2025. These movements reflect shifts in overall profitability inclusive of non-operating items and taxes.

Return on equity (ROE)

Return on equity shows extreme volatility and irregular data availability. Between late 2019 and mid-2021, ROE increased substantially from about 84% to over 260%, indicating exceptional profitability relative to equity during these quarters. Following a gap in reported data, the later periods demonstrate very high but declining ROE values—from a peak nearing 792% to around 60.84% by mid-2025. The exceptionally high figures may indicate significant leverage or changes in equity base, warranting further detailed investigation.

Return on assets (ROA)

Return on assets presents a relatively stable but slightly declining pattern. Starting at approximately 8.78% in late 2019, it peaked near 11.35% in early 2021 before declining to near 4.46% by mid-2022. Post this low point, ROA shows modest recovery and stabilization slightly above 7% toward mid-2025. This suggests the company's asset profitability experienced some deterioration but has been improving in more recent periods.

The financial data reveals distinct trends in gross profit, revenues, and gross profit margin over the periods analyzed. Revenues and gross profit generally demonstrate a positive trajectory, while the gross profit margin indicates a gradual decline over time.

Revenues

Revenues display an overall upward trend throughout the timeline. Starting from 9,218 million US dollars in August 2019, revenues steadily increased with occasional periods of acceleration, notably reaching 15,903 million US dollars by May 2025. The growth is consistent across most quarters, suggesting sustained demand and expansion in business operations during the period.

Gross Profit

Gross profit follows a similar upward trend alongside revenues, increasing from 7,261 million US dollars in August 2019 to 11,162 million US dollars by May 2025. Fluctuations are observed in the short term, coinciding with some quarterly variations in revenues, yet the general pattern remains positive and aligned with revenue growth.

Gross Profit Margin

The gross profit margin, calculated as gross profit divided by revenues, reveals a clear declining trend. From approximately 79.68% in May 2020, the margin steadily decreases over the years to about 70.51% by May 2025. This decline suggests that while revenues and gross profits have increased, the cost of goods sold or associated expenses have grown at a faster rate, compressing profitability margins.

Overall, the data indicates that although the company has been successful in growing its top-line revenues and gross profits over the examined periods, the efficiency reflected by the gross profit margin has been diminishing. This might imply increasing cost pressures or changes in product mix impacting profitability. Continuous monitoring and analysis would be advisable to address or understand the factors behind the margin compression.

The operating income of the company has exhibited considerable fluctuations over the observed periods. Beginning at $2,877 million in August 2019, it reached a peak of $4,685 million in May 2024, showing periods of both growth and decline in between. Notable dips occurred in November 2021 with a loss of $824 million and lower values around August 2022, but recovery phases followed in subsequent quarters. The general trend suggests resilience with periodic setbacks.

Revenues have demonstrated a general upward trajectory from $9,218 million in August 2019 to $15,903 million in August 2025. Despite some quarters showing slower growth or minor declines, the overall pattern indicates steady revenue expansion. The increase in revenues aligns broadly with the pattern of operating income, though the income series shows more pronounced volatility.

The operating profit margin, available from May 2020 onwards, reflects a fluctuating yet generally stable performance. Starting at approximately 35.57%, it experienced a decline to the low twenties around 2022, then rebounded to levels near 30% in the later periods. This indicates variable efficiency in converting revenues into operating income, with occasional compressions of margin possibly due to cost pressures or other operational challenges.

Operating Income Trends

Marked by cyclical increases and decreases, with a significant loss in late 2021 followed by recovery; ending the period on an upward trend.

Revenue Trends

Consistent growth trend overall, suggesting increased sales or service delivery, with minor interruptions or slower growth intervals.

Operating Profit Margin Trends

High levels initially near or above 35%, then a decline in 2021-2022 down to around 23%, followed by a gradual improvement back toward 30%, indicating fluctuations in operational efficiency.

In summary, the financial data reveals that the company has successfully increased revenue over the timeframe while facing operational profit margin fluctuations and occasional earnings volatility. The recovery in operating income after significant dips points to adaptive management strategies or market conditions improving. The margin variability suggests ongoing attention may be needed to cost control or productivity initiatives to stabilize profitability further.

The financial data reveals several notable trends in the company's quarterly performance over the indicated periods. Revenues demonstrate a general upward trajectory with some fluctuations, showing steady growth from US$ 9,218 million in August 2019 to a peak of US$ 15,903 million in May 2025. This indicates an overall expansion in the business scale or market demand across these years.

Net income exhibits greater variability compared to revenues. Initial quarters show a consistent increase, reaching a substantial high of US$ 5,021 million in February 2021. Subsequently, the net income declines sharply in November 2021, turning negative at US$ -1,247 million, which suggests a significant operational or one-time impairment event during that quarter. After this dip, net income recovers and stabilizes, maintaining positive values with some oscillations, culminating at US$ 3,427 million in May 2025. This pattern indicates resilience and recovery following the interim financial distress.

The net profit margin, available from May 2020 onwards, follows a mixed but mostly positive trend. Initially, it increases from 25.94% to a peak of 34.16% in August 2021, demonstrating improved profitability relative to revenues during this period. However, thereafter it experiences a decline to a low of 13.15% in February 2023, signaling possible margin pressures or increased costs affecting profitability. From this point forward, the margin gradually recovers, reaching approximately 21.68% by May 2025, indicating a partial restoration of profitability levels. The oscillations in margin relative to net income and revenues suggest changing cost structures or shifts in the business mix impacting earnings quality.

Overall, the financial results portray strong revenue growth supported by fluctuating but generally positive profitability, with a significant income volatility event occurring during late 2021. The subsequent recovery in both net income and profit margins points to effective management response and operational adjustments that restored financial health in the following quarters.

The analysis of the quarterly financial data indicates significant variability and notable trends in net income, shareholders' equity, and return on equity (ROE) over the observed periods.

Net Income (US$ in millions)

The net income exhibits considerable fluctuation throughout the quarters. Initial net income figures are positive, showing an upward trend from 2,137 million in August 2019 to a peak of 5,021 million by February 2021. However, a sharp decline to negative 1,247 million occurred in November 2021, representing a period of loss. Following this, net income recovers and remains generally positive, though with some variability, reaching approximately 3,427 million by May 2025. This pattern suggests cyclical performance with a notable recovery phase after a significant downturn.

Total Stockholders' Equity (US$ in millions)

Stockholders' equity shows a declining trend from August 2019 (18,433 million) to a negative value by August 2021 (-1,541 million), reflecting deteriorating equity positions during this period. The lowest equity level appears in November 2021 at negative 10,101 million. Subsequently, there is a steady recovery and consistent growth in equity values, surpassing positive territory by May 2023 and continuing upward to reach 20,451 million by May 2025. This trend suggests financial restructuring or improvements in asset and liability management contributing to equity restoration and growth.

Return on Equity (ROE, %)

ROE data, available for selected periods, shows extreme volatility with sharp increases noted between May 2020 and August 2021, peaking at 262.43%. After a gap with missing data, ROE spikes dramatically to 792.45% in May 2023, followed by a declining yet still elevated trend through May 2025, ending at 60.84%. These elevated ROE values, particularly during recovery phases, may reflect the impact of low or negative equity values inflating the ratio, indicating unusually high returns relative to shareholder equity during certain quarters.

Overall, the data reveal a company experiencing significant fluctuations in profitability and equity base, with a pronounced period of negative equity and loss followed by marked recovery in both net income and stockholders' equity. The ROE's sharp fluctuations corroborate these shifts and highlight the sensitivity of profitability ratios to equity base changes. Continuous monitoring of these metrics is advisable to assess sustainable financial health and performance stability going forward.

The analysis of the quarterly financial data reveals several key trends and insights regarding profitability, asset growth, and return on assets over the observed periods.

Net Income

The net income displays noticeable fluctuations across the quarters. Beginning with a generally positive trend from August 2019 through August 2020, reaching a peak of 5021 million US dollars in February 2021, the data then shows a significant dip in November 2021, where net income turned negative at -1247 million US dollars. Following this reversal, net income recovered and maintained positive values, fluctuating between approximately 1500 and 3400 million US dollars from early 2022 through mid-2025, with peaks observed in May 2023 (3318 million US dollars) and May 2025 (3427 million US dollars). This pattern indicates volatility possibly related to extraordinary events or operational changes affecting earnings.

Total Assets

Total assets demonstrate a general upward trajectory over the time span. Despite small decreases in certain quarters—such as between August 2019 and November 2019, and again in late 2022—the overall trend shows asset growth from 106,229 million US dollars in August 2019 to 168,361 million US dollars by May 2025. The growth is particularly notable after mid-2021, suggesting ongoing investments, acquisitions, or organic growth impacting asset accumulation.

Return on Assets (ROA)

ROA figures, available intermittently from May 2020 forward, reflect a varied but generally healthy profitability relative to assets. The ROA started at 8.78% in May 2020 and climbed to a high of 11.35% in August 2021, indicative of strong efficiency in asset utilization. Subsequently, the ratio declined to a low of 4.46% by August 2022 but showed signs of recovery towards values around 7.3% to 7.8% in the later periods examined, including early 2025. This volatility may correlate with the corresponding fluctuations in net income and the variability of asset growth during these periods.

In summary, the financial data portrays a company experiencing phases of significant earnings volatility, balanced by consistent asset growth. While net income showed sharp variations, including a negative quarter, it generally trended upwards in the medium term. Asset growth was steady and strong, contributing to a restoring and stabilizing ROA, which, despite its fluctuations, remained within a plausible range indicative of operational profitability. These patterns suggest active management of resources with changing external or internal factors influencing short-term profitability while maintaining asset base expansion.