ORACLE CORP

Oracle Corporation provides products and services that build, run and support enterprise information technology frameworks, including enterprise applications and infrastructure offerings that incorporate artificial intelligence technologies such as embedded AI-driven automation and analytics and generative AI capabilities. These offerings are delivered worldwide through cloud-based, on-premise and hybrid deployment models, including Oracle Exadata Cloud@Customer and multicloud options that enable customers to use Oracle cloud offerings in conjunction with other public clouds. The company operates in the highly competitive enterprise IT industry, which is characterized by rapid technological advances, evolving standards, changing customer needs and frequent new product introductions. Oracle's global customer base includes businesses of various sizes and industries, government agencies, educational institutions and resellers.

Oracle faces intense competition from some of the largest and most competitive companies in the world, including Adobe Systems Incorporated, Alphabet Inc., Amazon.com, Inc., Cisco Systems, Inc., Intel Corporation, International Business Machines Corporation, Microsoft Corporation, Salesforce, Inc. and SAP SE, as well as Hewlett-Packard Enterprise and Workday, Inc. Following the acquisition of Cerner Corporation, Oracle also faces competition from large healthcare IT providers such as Allscripts Healthcare Solutions, Inc., Arcadia Solutions, athenahealth, Inc., Epic Systems Corporation and InterSystems Corporation. Key competitive factors include total cost of ownership, performance, scalability, reliability, security, functionality, efficiency, ease of use, speed to production and quality of technical support. The company believes that offering customers broad, comprehensive, flexible and interoperable deployment models is important to its growth strategy and better addresses customer needs relative to competitors.

Oracle generates revenue through three businesses: cloud and software, hardware, and services. The cloud and software business includes cloud subscriptions (Oracle Cloud Applications and Oracle Cloud Infrastructure), software licenses and software support contracts, with substantially all customers opting to purchase software support contracts when they purchase software licenses. The hardware business includes Oracle Engineered Systems, servers, storage and industry-specific products, with customers generally opting to purchase hardware support contracts. The services business provides consulting and customer success services to help customers and partners maximize the performance of their investments in Oracle products and services. Cloud revenues represented 51% ¹, 43% ² and 37% ³ of total revenues during fiscal 2026, 2025 and 2024, respectively.

Oracle Cloud Applications (OCA) offerings include Oracle Fusion Cloud Enterprise Resource Planning (ERP), which includes Oracle Fusion Cloud Enterprise Performance Management (EPM) and Oracle Fusion Cloud Supply Chain and Manufacturing Management (SCM); Oracle Fusion Cloud Human Capital Management (HCM); Oracle Fusion Cloud Customer Experience (CX); NetSuite Applications Suite, generally marketed to small to medium-sized organizations; and Oracle Health applications designed to enable medical professionals to deliver better healthcare. Cloud applications revenues represented 47% ⁴, 58% ⁵ and 65% ⁶ of total cloud revenues during fiscal 2026, 2025 and 2024, respectively. Oracle Cloud Infrastructure (OCI) offerings include compute, storage, networking, cloud-native services, AI Infrastructure, generative AI and agentic AI, as well as Oracle Autonomous AI Database offerings. Cloud infrastructure revenues represented 53% ⁷, 42% ⁸ and 35% ⁹ of total cloud revenues during fiscal 2026, 2025 and 2024, respectively. Oracle also offers software licenses for Oracle AI Database, Oracle Middleware and Java, and hardware products including Oracle Engineered Systems such as Oracle Exadata Database Machine.

Oracle's services offerings include consulting services designed to help customers and global system integrator partners architect and deploy cloud and software offerings, and customer success services which are support services provided to enable increased performance and higher availability of a customer's Oracle products and services. The company also offers learning subscriptions through Oracle University, where learners generally have unlimited access to course content delivered during the subscription period.

In fiscal 2026, 2025 and 2024, Oracle invested $10.3 billion ¹⁰, $9.9 billion ¹¹ and $8.9 billion ¹², respectively, in research and development. During the past three fiscal years, customers with annual software support contracts that migrated to the Oracle Cloud contributed to the increase in annualized cloud revenue by $5.4 billion ¹³. As of May 31, 2026, Oracle employed approximately 141,000 ¹⁴ full-time employees, of which approximately 49,000 ¹⁵ were employed in the U.S. and approximately 92,000 ¹⁶ were employed internationally. The average tenure of employees is approximately eight years ¹⁷ and 31% ¹⁸ of employees have been employed with Oracle for ten or more years. 20% ¹⁹ of open non-entry level positions were filled internally in fiscal 2026. Oracle employees received more than 4.2 million ²⁰ hours of training in fiscal 2026 and accessed online learning content at an average rate of approximately 2.6 million ²¹ views per month. More than 105,000 ²² employees participated in the annual employee engagement survey in fiscal 2026.

Total revenues for fiscal 2026 were $53.970 billion ²³, compared to $52.961 billion ²⁴ in fiscal 2025 and $49.954 billion ²⁵ in fiscal 2024. Net income for fiscal 2026 was $10.174 billion ²⁶, compared to $10.467 billion ²⁷ in fiscal 2025 and $8.709 billion ²⁸ in fiscal 2024. Diluted earnings per share for fiscal 2026 was $3.60 ²⁹, compared to $3.72 ³⁰ in fiscal 2025 and $3.15 ³¹ in fiscal 2024. Operating income for fiscal 2026 was $15.147 billion ³², compared to $15.293 billion ³³ in fiscal 2025 and $13.069 billion ³⁴ in fiscal 2024.

Oracle believes it is in the early stages of what it expects will be a material migration of its existing Oracle customer base from on-premise applications and infrastructure products and services to the Oracle Cloud. The proportion of cloud revenues relative to total revenues has increased, with cloud revenues representing 51% ³⁵ of total revenues during fiscal 2026, and the company expects these trends to continue. Oracle has invested in the rapid expansion of the Oracle Cloud by increasing existing data center capacity and adding data centers in new geographic locations to meet current and expected customer demand, and expects this trend will continue. The company continues to invest in OCI to improve features and performance, expand the catalog of cloud-based infrastructure tools and services, increase capacity and geographic footprint, simplify workload migration processes, and provide customers with the ability to run workloads across different IT environments including multicloud and hybrid deployment models.

Oracle's growth strategy also includes marketing Oracle Cloud offerings to a broader ecosystem of small and medium-sized businesses, non-IT lines of business purchasers, developers and partners due to the highly performant and available, intuitive design, ease-of-access, low touch and cost-effective characteristics of the Oracle Cloud. The company has introduced certain programs for customers to pivot their applications and infrastructure software licenses and software support contracts to the Oracle Cloud for new deployments and to migrate to and expand with the Oracle Cloud for their existing workloads. Oracle also offers multicloud database offerings designed to enable organizations to deploy and run Oracle AI Database services, Oracle Autonomous AI Database and Oracle Zero Data Loss Autonomous Recovery Service within other hyperscale cloud IT environments.

Oracle does not provide explicit margin or cost outlook in the filing.

Oracle relies on third-party manufacturing partners to produce most of its hardware products and distributes most hardware products from these partners' facilities. For most hardware products, Oracle has existing alternative sources of supply or such sources are readily available, but the company does rely on sole and/or single sources for certain hardware components. Oracle monitors and evaluates potential risks of disruption within its supply chain operations. The company plans to continue to dedicate a significant amount of resources to research and development efforts to develop new products and services offerings, as well as maintain and improve current offerings.

In fiscal 2026, 2025 and 2024, Oracle invested $10.3 billion ³⁶, $9.9 billion ³⁷ and $8.9 billion ³⁸, respectively, in research and development. The filing does not provide specific capital expenditure plans, share repurchase authorization amounts, or dividend policy figures beyond what is stated in the financial statements.

Oracle's international operations subject it to certain risks, including geography-specific economic trends. The company's quarterly revenues have historically been affected by seasonal factors, including the structure of sales force incentive compensation plans, with total revenues and operating margins typically highest in the fourth fiscal quarter and lowest in the first fiscal quarter. The company faces intense competition in all aspects of its business, and new technologies and new and growing competitors frequently emerge to challenge its offerings.

Oracle may not receive significant revenues from its current research and development efforts for several years, if at all. The company also faces risks related to sole and/or single sources for certain hardware components, which could cause supply chain disruptions.

Oracle faces intense competition from large competitors including Amazon.com, Microsoft, Salesforce, SAP SE and others, and new competitors frequently emerge due to low barriers to entry in many market segments. The company relies on sole and/or single sources for certain hardware components, creating supply chain disruption risk. Oracle's international operations subject it to geography-specific economic trends and other risks. The company may not receive significant revenues from current research and development efforts for several years, if at all. Additionally, the company's quarterly revenues are affected by seasonal factors, with total revenues and operating margins typically highest in the fourth fiscal quarter and lowest in the first fiscal quarter.

Management's message emphasizes the company's focus on providing flexible and interoperable IT deployment models, including cloud-based, on-premise and hybrid deployments, as a key element of corporate strategy. The filing states that management believes the company is in the early stages of what it expects will be a material migration of the existing Oracle customer base from on-premise applications and infrastructure products and services to the Oracle Cloud. Strategic priorities include continuing to invest in research and development, with $10.3 billion ³⁹ invested in fiscal 2026, to enhance the existing portfolio and develop new technologies and services; expanding the Oracle Cloud by increasing data center capacity and adding data centers in new geographic locations; and incorporating emerging technologies such as AI within offerings to enable leaner business processes, automation and innovation.