8.
DEFERRED REVENUES

Deferred revenues consisted of the following:

 

 

May 31,

 

(in millions)

 

2026

 

 

2025

 

Cloud

 

$

3,228

 

 

$

2,959

 

Software

 

 

5,662

 

 

 

5,350

 

Hardware

 

 

521

 

 

 

614

 

Services

 

 

505

 

 

 

464

 

Deferred revenues, current

 

 

9,916

 

 

 

9,387

 

Deferred revenues, non-current (in other non-current liabilities)

 

 

5,479

 

 

 

1,346

 

Total deferred revenues

 

$

15,395

 

 

$

10,733

 

 

Deferred cloud revenues, deferred software revenues and deferred hardware revenues substantially represent customer payments made in advance for cloud or support contracts that are billed in advance with corresponding revenues generally being recognized ratably or based upon customer usage over the respective contractual periods. Deferred services revenues include prepayments for our services business and revenues for these services are generally recognized as the services are performed.

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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 Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.