Oracle Corporation (ORCL) FY2026 10-K Annual Report

Filed: Jun 22, 2026
Information Technology
Services-Prepackaged SoftwareSEC EDGAR

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 Metrics
XBRL

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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