5.
INTANGIBLE ASSETS AND GOODWILL

The changes in intangible assets for fiscal 2026 and the net book value of intangible assets as of May 31, 2026 and 2025 were as follows:

 

 

Intangible Assets, Gross

 

 

Accumulated Amortization

 

 

Intangible Assets, Net

 

(in millions)

 

May 31,
2025

 

 

Additions

 

 

Retirements

 

 

May 31,
2026

 

 

May 31,
2025

 

 

Expense

 

 

Retirements

 

 

May 31,
2026

 

 

May 31,
2025

 

 

May 31,
2026

 

Cloud and software agreements and related relationships

 

$

9,670

 

 

$

 

 

$

(1,794

)

 

$

7,876

 

 

$

(6,471

)

 

$

(558

)

 

$

1,794

 

 

$

(5,235

)

 

$

3,199

 

 

$

2,641

 

Developed technology

 

 

4,143

 

 

 

287

 

 

 

(425

)

 

 

4,005

 

 

 

(3,509

)

 

 

(627

)

 

 

425

 

 

 

(3,711

)

 

 

634

 

 

 

294

 

Other

 

 

2,827

 

 

 

26

 

 

 

(173

)

 

 

2,680

 

 

 

(2,073

)

 

 

(486

)

 

 

173

 

 

 

(2,386

)

 

 

754

 

 

 

294

 

Total intangible assets, net

 

$

16,640

 

 

$

313

 

 

$

(2,392

)

 

$

14,561

 

 

$

(12,053

)

 

$

(1,671

)

 

$

2,392

 

 

$

(11,332

)

 

$

4,587

 

 

$

3,229

 

As of May 31, 2026, estimated future amortization expenses related to intangible assets were as follows (in millions):

Fiscal 2027

 

$

731

 

Fiscal 2028

 

 

694

 

Fiscal 2029

 

 

620

 

Fiscal 2030

 

 

582

 

Fiscal 2031

 

 

377

 

Thereafter

 

 

225

 

Total intangible assets, net

 

$

3,229

 

 

The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, for our operating segments for fiscal 2026 and 2025 were as follows:

(in millions)

 

Cloud and Software

 

 

Hardware

 

 

Services

 

 

Total Goodwill

 

Balances as of May 31, 2024

 

$

57,072

 

 

$

2,732

 

 

$

2,426

 

 

$

62,230

 

Goodwill adjustments, net(1)

 

 

(23

)

 

 

 

 

 

 

 

 

(23

)

Balances as of May 31, 2025

 

 

57,049

 

 

 

2,732

 

 

 

2,426

 

 

 

62,207

 

Goodwill adjustments, net(1)

 

 

65

 

 

 

 

 

 

(11

)

 

 

54

 

Balances as of May 31, 2026

 

$

57,114

 

 

$

2,732

 

 

$

2,415

 

 

$

62,261

 

 

Amounts include any changes in goodwill balances for the period presented that resulted from foreign currency translations.
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Historical Timeline

Fiscal YearFiled
2026Jun 22, 2026Showing above
2025Jun 18, 2025
2024Jun 20, 2024
2023Jun 20, 2023
2022Jun 21, 2022
2021Jun 21, 2021
2020Jun 22, 2020
2019Jun 21, 2019
2018Jun 22, 2018
2017Jun 27, 2017
2016Jun 22, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.