ORACLE CORP Segments Disclosure
ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision makers (CODMs) are our . We are organized by line of business and geographically. While our CODMs evaluate results in a number of different ways, the line of business management structure is the primary basis for which the allocation of resources and financial results are assessed.
We have three businesses—cloud and software (formerly referred to as cloud and license), hardware and services— of which is comprised of a operating segment. The tabular information below presents financial information, including information on segment revenues, significant segment expenses categories and amounts on a segment basis and included within each reported measure of a segment’s profit or loss, that is regularly provided to our CODMs for their review and assists our CODMs with evaluating the company’s performance and allocating company resources.
Our cloud and software business engages in the sale, marketing and delivery of our enterprise applications and infrastructure technologies through cloud and on-premise deployment models, including our cloud offerings and our software offerings. Cloud revenues are generated from applications and infrastructure offerings that are typically contracted with customers directly, delivered to customers over time with our revenue recognition occurring over the contractual terms and renewed by customers upon completion of the contractual terms. Our cloud contracts provide customers with access to the latest technological updates as they become available and for which the customer contracted together with related technical support services over the contractual term. Software revenues represent:
Software support contracts provide customers with technical support services and unspecified license upgrades and enhancements during the term of the support period. In each fiscal year, our cloud and software business’ contractual activities, excluding the impact of timing of booking of large contracts, are typically highest in our fourth fiscal quarter, and the related cash flows are typically highest in the following quarter (i.e., in the first fiscal quarter of the next fiscal year) as we receive payments from these contracts. Costs associated with our cloud and software business are largely infrastructure- and personnel-related, including the cost of providing our cloud and software offerings, salaries and commissions earned by our sales force for the sale of our cloud and software offerings and marketing program costs.
Our hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Our hardware business also offers hardware support, which provides customers with software updates for the software components that are essential to the functionality of their hardware products and can also include product repairs, maintenance services and technical support services that are typically delivered and recognized ratably over the contractual term. Costs associated with our hardware business include the cost of hardware products, which consists of expenses for materials and labor used to produce these products by our internal manufacturing operations or by third-party manufacturers; the cost of materials used to repair customer products with eligible support contracts; the cost of labor and infrastructure to provide support services; and sales and marketing expenses, which are largely personnel-related and include variable compensation earned by our sales force for the sales of our hardware offerings.
Our services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies and include our consulting services and customer success services offerings. Costs associated with our services business consist primarily of personnel-related expenses, technology infrastructure expenditures, facilities expenses and external contractor expenses.
We do not track our assets for each business. Consequently, it is not practical to show assets by operating segment.
The following table presents summary results for each of our three businesses for each of fiscal 2026, 2025 and 2024:
|
|
Year Ended May 31, |
|
|||||||||
(in millions) |
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Cloud and software: |
|
|
|
|
|
|
|
|
|
|||
Revenues |
|
$ |
58,530 |
|
|
$ |
49,230 |
|
|
$ |
44,464 |
|
Cloud and software expenses |
|
|
16,850 |
|
|
|
10,827 |
|
|
|
8,783 |
|
Sales and marketing expenses |
|
|
7,212 |
|
|
|
7,473 |
|
|
|
7,167 |
|
Margin(1) |
|
$ |
34,468 |
|
|
$ |
30,930 |
|
|
$ |
28,514 |
|
Hardware: |
|
|
|
|
|
|
|
|
|
|||
Revenues |
|
$ |
3,084 |
|
|
$ |
2,936 |
|
|
$ |
3,066 |
|
Hardware expenses |
|
|
832 |
|
|
|
742 |
|
|
|
855 |
|
Sales and marketing expenses |
|
|
235 |
|
|
|
276 |
|
|
|
296 |
|
Margin(1) |
|
$ |
2,017 |
|
|
$ |
1,918 |
|
|
$ |
1,915 |
|
Services: |
|
|
|
|
|
|
|
|
|
|||
Revenues |
|
$ |
5,743 |
|
|
$ |
5,233 |
|
|
$ |
5,431 |
|
Expenses |
|
|
4,210 |
|
|
|
4,240 |
|
|
|
4,515 |
|
Margin(1) |
|
$ |
1,533 |
|
|
$ |
993 |
|
|
$ |
916 |
|
Totals: |
|
|
|
|
|
|
|
|
|
|||
Revenues |
|
$ |
67,357 |
|
|
$ |
57,399 |
|
|
$ |
52,961 |
|
Expenses |
|
|
29,339 |
|
|
|
23,558 |
|
|
|
21,616 |
|
Margin(1) |
|
$ |
38,018 |
|
|
$ |
33,841 |
|
|
$ |
31,345 |
|
The following table reconciles total margin for operating segments to income before income taxes:
|
|
Year Ended May 31, |
|
|||||||||
(in millions) |
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Total margin for operating segments |
|
$ |
38,018 |
|
|
$ |
33,841 |
|
|
$ |
31,345 |
|
Research and development |
|
|
(10,272 |
) |
|
|
(9,860 |
) |
|
|
(8,915 |
) |
General and administrative |
|
|
(1,618 |
) |
|
|
(1,602 |
) |
|
|
(1,548 |
) |
Amortization of intangible assets |
|
|
(1,671 |
) |
|
|
(2,307 |
) |
|
|
(3,010 |
) |
Restructuring and other |
|
|
(1,838 |
) |
|
|
(374 |
) |
|
|
(718 |
) |
Stock-based compensation for operating segments |
|
|
(1,618 |
) |
|
|
(1,597 |
) |
|
|
(1,382 |
) |
Expense allocations and other, net |
|
|
(395 |
) |
|
|
(423 |
) |
|
|
(419 |
) |
Interest expense |
|
|
(4,599 |
) |
|
|
(3,578 |
) |
|
|
(3,514 |
) |
Non-operating income (expenses), net |
|
|
3,547 |
|
|
|
60 |
|
|
|
(98 |
) |
Income before income taxes |
|
$ |
19,554 |
|
|
$ |
14,160 |
|
|
$ |
11,741 |
|
Disaggregation of Revenues
We have considered information that is regularly reviewed by our CODMs in evaluating financial performance and disclosures presented outside of our financial statements in our earnings releases and used in investor presentations to disaggregate revenues to depict how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. The principal category we use to disaggregate revenues is the nature of our products and services as presented in our consolidated statements of operations.
The following table presents a summary of our total revenues by geographic region, which are generally based on the location of our customers:
|
|
Year Ended May 31, |
|
|||||||||
(in millions) |
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Americas |
|
$ |
44,478 |
|
|
$ |
36,339 |
|
|
$ |
33,122 |
|
EMEA(1) |
|
|
15,297 |
|
|
|
14,025 |
|
|
|
13,030 |
|
Asia Pacific |
|
|
7,582 |
|
|
|
7,035 |
|
|
|
6,809 |
|
Total revenues |
|
$ |
67,357 |
|
|
$ |
57,399 |
|
|
$ |
52,961 |
|
The following table presents our software revenues by offerings:
|
|
Year Ended May 31, |
|
|||||||||
(in millions) |
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Software license |
|
$ |
4,737 |
|
|
$ |
5,201 |
|
|
$ |
5,081 |
|
Software support |
|
|
19,804 |
|
|
|
19,523 |
|
|
|
19,609 |
|
Total software revenues |
|
$ |
24,541 |
|
|
$ |
24,724 |
|
|
$ |
24,690 |
|
The following table presents our cloud revenues by offerings:
|
|
Year Ended May 31, |
|
|||||||||
(in millions) |
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Cloud applications |
|
$ |
15,888 |
|
|
$ |
14,272 |
|
|
$ |
12,934 |
|
Cloud infrastructure |
|
|
18,101 |
|
|
|
10,234 |
|
|
|
6,840 |
|
Total cloud revenues |
|
$ |
33,989 |
|
|
$ |
24,506 |
|
|
$ |
19,774 |
|
Geographic Information
Disclosed in the table below is geographic information for each country that comprised greater than three percent of our total revenues for any of fiscal 2026, 2025 or 2024:
|
|
As of and for the Year Ended May 31, |
|
|||||||||||||||||||||
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||||||||||||||
(in millions) |
|
Revenues |
|
|
Long-Lived |
|
|
Revenues |
|
|
Long-Lived |
|
|
Revenues |
|
|
Long-Lived |
|
||||||
U.S. |
|
$ |
39,835 |
|
|
$ |
102,717 |
|
|
$ |
32,075 |
|
|
$ |
45,439 |
|
|
$ |
29,055 |
|
|
$ |
24,798 |
|
United Kingdom |
|
|
2,816 |
|
|
|
3,903 |
|
|
|
2,594 |
|
|
|
2,530 |
|
|
|
2,423 |
|
|
|
1,164 |
|
Germany |
|
|
1,993 |
|
|
|
2,432 |
|
|
|
1,817 |
|
|
|
2,013 |
|
|
|
1,794 |
|
|
|
1,192 |
|
Japan |
|
|
1,870 |
|
|
|
3,183 |
|
|
|
1,759 |
|
|
|
2,320 |
|
|
|
1,662 |
|
|
|
1,144 |
|
Other countries |
|
|
20,843 |
|
|
|
21,029 |
|
|
|
19,154 |
|
|
|
7,841 |
|
|
|
18,027 |
|
|
|
3,962 |
|
Total |
|
$ |
67,357 |
|
|
$ |
133,264 |
|
|
$ |
57,399 |
|
|
$ |
60,143 |
|
|
$ |
52,961 |
|
|
$ |
32,260 |
|
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Jun 22, 2026 | Showing above |
| 2025 | Jun 18, 2025 | |
| 2024 | Jun 20, 2024 | |
| 2023 | Jun 20, 2023 | |
| 2022 | Jun 21, 2022 | |
| 2021 | Jun 21, 2021 | |
| 2020 | Jun 22, 2020 | |
| 2019 | Jun 21, 2019 | |
| 2018 | Jun 22, 2018 | |
| 2017 | Jun 27, 2017 | |
| 2016 | Jun 22, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.