Short answer
Oracle Corporation (ORCL) filed its fiscal 2026 10-K annual report with the SEC on Jun 22, 2026. It reported revenue of $67.4B (+17.3% year over year) and net income of $17.1B.
- Top risk flagged: 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
FY2026 key financial metrics · XBRL
- Revenue
- $67.4B
- +17.3% YoY
- Net income
- $17.1B
- +37.3% YoY
- Operating margin
- 30.6%
- −0.2 pp YoY
- EPS (diluted)
- $5.83
- +34.3% YoY
- ROE
- 40.2%
- −20.6 pp YoY
- Operating cash flow
- $32.0B
- +53.6% YoY
Source: XBRL data from the Oracle Corporation (ORCL) FY2026 10-K on SEC EDGAR. USD.
Oracle Corporation FY2026 10-K analysis
AI summary of each section, grounded in the filing text
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
Generated from the filing text; verify against the original. How to read a 10-K
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