Oracle Corporation (ORCL) FY2026 10-K Annual Report
Oracle Corporation (ORCL) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Jun 22, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Oracle Corporation FY2026 10-K Analysis
Business Overview
- • Core business model: Enterprise IT products and services encompassing cloud applications (OCA), cloud infrastructure (OCI), software licenses, hardware, and support services with embedded AI capabilities
- • New emphasis: Expanded AI integration including generative AI and agentic AI capabilities, advanced OCI AI infrastructure offerings, and introduction of OCI Sovereign Cloud for regulated industries
- • Strategic shift: Accelerated migration focus from on-premise products to Oracle Cloud; cloud revenues rose to 51% of total in FY 2026 from 43% in FY 2025
- • Quantitative highlight: R&D investment increased to $10.3 billion in FY 2026 from $9.9 billion in FY 2025; total employee count approx. 141,000 with 43,000 in R&D
- • Noteworthy fact: New dual CEO structure implemented in September 2025, with Clayton M. Magouyrk and Michael D. Sicilia appointed as co-Chief Executive Officers
Management Discussion & Analysis
- • Total revenue $67.4B, up 17% YoY; cloud and software revenue $58.5B, up 19% YoY (+$9.3B), driven by cloud growth
- • Operating margin 31% flat YoY; cloud and software segment margin 59% down from 63% due to higher infrastructure costs
- • Best performing segment: Cloud and software revenue $58.5B (+19%), margin 59%; worst: Services margin 27%, though services margin rose from 19%
- • Net cash from operations $32.0B (+54% YoY); capital expenditures $55.7B (up $34.4B) mainly for data center expansion; dividends $5.8B; common stock repurchase $95M
- • Management expects continued revenue growth in cloud and software; ongoing investments in cloud infrastructure; risks include inflation, tariffs, geopolitical conditions, and tax uncertainties
Risk Factors
- • AI regulatory compliance risk from evolving U.S. federal/state laws and EU AI Act phased through 2030, could restrict Oracle’s AI product offerings and increase costs
- • Geopolitical exposure: Middle East conflicts, Russia-Ukraine war, China-Taiwan tensions impact Europe and supply chain reliability
- • Data center capacity risk: $129.5B debt-financed expansion dependent on scarce power, permits, and GPUs, risk of overcommitment or downtime
- • Competitive pressure from Microsoft Azure, AWS, Google Cloud multicloud strategies may reduce Oracle Cloud revenues and customer retention
- • High leverage risk with $129.5B debt maturing 2026-2066, refinancing risks, variable interest rates, and potential credit rating downgrades
Oracle Corporation FY2026 Key Financial MetricsXBRL
Revenue
$67.4B
▲ +17.3% YoY
Net Income
$17.1B
▲ +37.3% YoY
Operating Margin
30.6%
▼ -21bp YoY
Net Margin
25.4%
▲ +369bp YoY
ROE
40.2%
▼ -2065bp YoY
Total Assets
$261.8B
▲ +55.5% YoY
EPS (Diluted)
$5.83
▲ +34.3% YoY
Operating Cash Flow
$32.0B
▲ +53.6% YoY
Source: XBRL data from Oracle Corporation FY2026 10-K filing on SEC EDGAR. All figures in USD.
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