Company Announcements

ORACLE  CORPORATION

Q2 FISCAL 2026 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

Three Months Ended November 30,

% Increase

% Increase

(Decrease)

2025

% of 

2024

% of 

(Decrease)

in Constant

Revenues

Revenues

in US $

Currency (1)

REVENUES

Cloud

$           7,977

50 %

$           5,937

42 %

34 %

33 %

Software

5,877

36 %

6,064

44 %

(3 %)

(5 %)

Hardware

776

5 %

728

5 %

7 %

5 %

Services

1,428

9 %

1,330

9 %

7 %

6 %

      Total revenues

16,058

100 %

14,059

100 %

14 %

13 %

OPERATING EXPENSES

Cloud and software

3,990

25 %

2,746

19 %

45 %

45 %

Hardware

215

1 %

172

1 %

25 %

23 %

Services

1,169

7 %

1,167

8 %

0 %

(1 %)

Sales and marketing

2,149

13 %

2,190

16 %

(2 %)

(3 %)

Research and development 

2,561

16 %

2,471

18 %

4 %

4 %

General and administrative

409

3 %

387

3 %

6 %

5 %

Amortization of intangible assets

407

3 %

591

4 %

(31 %)

(31 %)

Acquisition related and other

21

0 %

31

0 %

(33 %)

(35 %)

Restructuring

406

3 %

84

1 %

387 %

378 %

      Total operating expenses 

11,327

71 %

9,839

70 %

15 %

14 %

OPERATING INCOME

4,731

29 %

4,220

30 %

12 %

9 %

Interest expense

(1,057)

(7 %)

(866)

(6 %)

22 %

22 %

Non-operating income, net

2,668

17 %

36

0 %

*

*

INCOME BEFORE INCOME TAXES

6,342

39 %

3,390

24 %

87 %

82 %

Provision for income taxes

207

1 %

239

2 %

(14 %)

(16 %)

NET INCOME

$           6,135

38 %

$           3,151

22 %

95 %

89 %

EARNINGS PER SHARE:

Basic

$              2.14

$              1.13

Diluted

$              2.10

$              1.10

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

2,864

2,790

Diluted

2,922

2,869

(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for

assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for

entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior

fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months

ended November 30, 2025 compared with the corresponding prior year period increased our total revenues by 1 percentage point, total operating expenses by 1 percentage point and

operating income by 3 percentage points.

*

Not meaningful

ORACLE  CORPORATION

Q2 FISCAL 2026 FINANCIAL RESULTS

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) 

($ in millions, except per share data)

Three Months Ended November 30,

% Increase
(Decrease)
in US $

% Increase (Decrease) in
Constant Currency (2) 

2025

2025

2024

2024

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

TOTAL REVENUES

$       16,058

$           -

$       16,058

$       14,059

$           -

$       14,059

14 %

14 %

13 %

13 %

TOTAL OPERATING EXPENSES

$       11,327

$   (1,990)

$         9,337

$         9,839

$   (1,876)

$         7,963

15 %

17 %

14 %

16 %

     Stock-based compensation (3)

1,156

(1,156)

-

1,170

(1,170)

-

(1 %)

*

(1 %)

*

     Amortization of intangible assets (4)

407

(407)

-

591

(591)

-

(31 %)

*

(31 %)

*

     Acquisition related and other

21

(21)

-

31

(31)

-

(33 %)

*

(35 %)

*

     Restructuring

406

(406)

-

84

(84)

-

387 %

*

378 %

*

OPERATING INCOME

$         4,731

$     1,990

$         6,721

$         4,220

$     1,876

$         6,096

12 %

10 %

9 %

8 %

OPERATING MARGIN %

29 %

42 %

30 %

43 %

(56) bp.

(150) bp.

(92) bp.

(171) bp.

INCOME TAX EFFECTS (5)

$            207

$     1,527

$         1,734

$            239

$        820

$         1,059

(14 %)

64 %

(16 %)

61 %

NET INCOME

$         6,135

$        463

$         6,598

$         3,151

$     1,056

$         4,207

95 %

57 %

89 %

54 %

DILUTED EARNINGS PER SHARE

$           2.10

$           2.26

$           1.10

$           1.47

91 %

54 %

86 %

51 %

DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING

2,922

-

2,922

2,869

-

2,869

2 %

2 %

2 %

2 %

(1)

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated

financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures

and the material limitations on the usefulness of these measures, please see Appendix A. 

(2)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses

performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into

United States dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. 

(3)

Stock-based compensation was included in the following GAAP operating expense categories:

Three Months Ended

Three Months Ended

November 30, 2025

November 30, 2024

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

     Cloud and software

$            151

$      (151)

$               -

$            158

$      (158)

$               -

     Hardware

7

(7)

-

8

(8)

-

     Services

51

(51)

-

53

(53)

-

     Sales and marketing

185

(185)

-

195

(195)

-

     Research and development

668

(668)

-

657

(657)

-

     General and administrative

94

(94)

-

99

(99)

-

           Total stock-based compensation

$         1,156

$   (1,156)

$               -

$         1,170

$   (1,170)

$               -

(4)

Estimated future annual amortization expense related to intangible assets as of November 30, 2025 was as follows:

     Remainder of fiscal 2026

$            812

     Fiscal 2027

672

     Fiscal 2028

635

     Fiscal 2029

561

     Fiscal 2030

522

     Fiscal 2031

332

     Thereafter

226

           Total intangible assets, net

$         3,760

(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 3.3% and 7.1% in the second quarter of fiscal 2026 and 2025, respectively, and an effective non-GAAP tax rate of 20.8% and 20.1% in the second quarter of

fiscal 2026 and 2025, respectively. The difference in our GAAP and non-GAAP tax rates in each of the second quarters of fiscal 2026 and 2025 was primarily due to the net tax effects related to stock-based compensation expense;

acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded

due to the partial realignment of our legal entity structure.

Not meaningful

ORACLE  CORPORATION

Q2 FISCAL 2026 YEAR TO DATE FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

Six Months Ended November 30,

% Increase

% Increase

(Decrease)

2025

% of 

2024

% of 

(Decrease)

in Constant

Revenues

Revenues

in US $

Currency (1)

REVENUES

Cloud

$         15,162

49 %

$         11,559

42 %

31 %

30 %

Software

11,598

37 %

11,830

44 %

(2 %)

(4 %)

Hardware

1,446

5 %

1,383

5 %

5 %

3 %

Services

2,777

9 %

2,594

9 %

7 %

6 %

      Total revenues

30,983

100 %

27,366

100 %

13 %

12 %

OPERATING EXPENSES

Cloud and software

7,597

24 %

5,344

20 %

42 %

42 %

Hardware

393

1 %

333

1 %

18 %

16 %

Services

2,268

7 %

2,314

8 %

(2 %)

(3 %)

Sales and marketing

4,211

14 %

4,226

15 %

0 %

(2 %)

Research and development 

5,051

16 %

4,777

18 %

6 %

6 %

General and administrative

786

3 %

745

3 %

5 %

5 %

Amortization of intangible assets

826

3 %

1,215

4 %

(32 %)

(32 %)

Acquisition related and other

35

0 %

44

0 %

(21 %)

(24 %)

Restructuring

808

3 %

157

1 %

415 %

406 %

      Total operating expenses 

21,975

71 %

19,155

70 %

15 %

14 %

OPERATING INCOME 

9,008

29 %

8,211

30 %

10 %

7 %

Interest expense

(1,980)

(7 %)

(1,708)

(6 %)

16 %

16 %

Non-operating income, net

2,741

9 %

57

0 %

*

*

INCOME BEFORE INCOME TAXES

9,769

31 %

6,560

24 %

49 %

44 %

Provision for income taxes (2)

707

2 %

480

2 %

47 %

43 %

NET INCOME 

$           9,062

29 %

$           6,080

22 %

49 %

45 %

EARNINGS PER SHARE:

Basic

$              3.19

$              2.19

Diluted

$              3.11

$              2.13

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

2,845

2,775

Diluted

2,916

2,860

(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information

to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this

information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States

dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during

the respective periods. Movements in international currencies relative to the United States dollar during the six months ended November 30, 2025 compared

with the corresponding prior year period increased our total revenues by 1 percentage point, total operating expenses by 1 percentage point and operating

income by 3 percentage points.

(2)

Provision for income taxes for the six months ended November 30, 2025 includes the impact of the U.S. One, Big, Beautiful Bill Act, which was signed into

law on July 4, 2025.

*

Not meaningful

ORACLE  CORPORATION

Q2 FISCAL 2026 YEAR TO DATE FINANCIAL RESULTS

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) 

($ in millions, except per share data)

Six Months Ended November 30,

% Increase
(Decrease)
in US $

% Increase (Decrease)
in Constant Currency (2) 

2025

2025

2024

2024

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

TOTAL REVENUES

$       30,983

$           -

$       30,983

$       27,366

$           -

$       27,366

13 %

13 %

12 %

12 %

TOTAL OPERATING EXPENSES

$       21,975

$   (3,949)

$       18,026

$       19,155

$   (3,592)

$       15,563

15 %

16 %

14 %

15 %

     Stock-based compensation (3)

2,280

(2,280)

-

2,176

(2,176)

-

5 %

*

5 %

*

     Amortization of intangible assets (4)

826

(826)

-

1,215

(1,215)

-

(32 %)

*

(32 %)

*

     Acquisition related and other

35

(35)

-

44

(44)

-

(21 %)

*

(24 %)

*

     Restructuring

808

(808)

-

157

(157)

-

415 %

*

406 %

*

OPERATING INCOME

$         9,008

$     3,949

$       12,957

$         8,211

$     3,592

$       11,803

10 %

10 %

7 %

8 %

OPERATING MARGIN %

29 %

42 %

30 %

43 %

(93) bp.

(131) bp.

(136) bp.

(158) bp.

INCOME TAX EFFECTS (5)

$            707

$     2,131

$         2,838

$            480

$     1,500

$         1,980

47 %

43 %

43 %

40 %

NET INCOME 

$         9,062

$     1,818

$       10,880

$         6,080

$     2,092

$         8,172

49 %

33 %

45 %

31 %

DILUTED EARNINGS PER SHARE

$           3.11

$           3.73

$           2.13

$           2.86

46 %

31 %

42 %

28 %

DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING

2,916

-

2,916

2,860

-

2,860

2 %

2 %

2 %

2 %

(1)

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements

prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness

of these measures, please see Appendix A.

(2)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the

effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect

on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual exchange

rates in effect during the respective periods.

(3)

Stock-based compensation was included in the following GAAP operating expense categories:

Six Months Ended

Six Months Ended

November 30, 2025

November 30, 2024

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

     Cloud and software

$            307

$      (307)

$               -

$            299

$      (299)

$               -

     Hardware

14

(14)

-

14

(14)

-

     Services

100

(100)

-

96

(96)

-

     Sales and marketing

362

(362)

-

356

(356)

-

     Research and development

1,314

(1,314)

-

1,226

(1,226)

-

     General and administrative

183

(183)

-

185

(185)

-

           Total stock-based compensation

$         2,280

$   (2,280)

$               -

$         2,176

$   (2,176)

$               -

(4)

Estimated future annual amortization expense related to intangible assets as of November 30, 2025 was as follows:

     Remainder of fiscal 2026

$            812

     Fiscal 2027

672

     Fiscal 2028

635

     Fiscal 2029

561

     Fiscal 2030

522

     Fiscal 2031

332

     Thereafter

226

           Total intangible assets, net

$         3,760

(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 7.2% and 7.3% in the first half of fiscal 2026 and 2025, respectively, and an effective non-GAAP tax rate of 20.7% and 19.5% in the first half of fiscal 2026 and 2025, respectively. The

difference in our GAAP and non-GAAP tax rates in each of the first half of fiscal 2026 and 2025 was primarily due to the net tax effects related to stock-based compensation expense; acquisition related and other items, including the tax effects on amortization

of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure; and, for the first half of fiscal 2026, the impact

of the U.S. One, Big, Beautiful Bill Act (refer to Appendix A for additional information).

*

Not meaningful

ORACLE  CORPORATION

Q2 FISCAL 2026 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)

November 30,

2025

ASSETS

Current Assets:

Cash and cash equivalents

$               19,241

$               10,786

Marketable securities

525

417

Trade receivables, net

9,440

8,558

Prepaid expenses and other current assets

5,160

4,818

Total Current Assets

34,366

24,579

Non-Current Assets:

   Property, plant and equipment, net

67,875

43,522

   Intangible assets, net

3,760

4,587

   Goodwill

62,207

62,207

   Deferred tax assets

11,531

11,877

   Other non-current assets

25,245

21,589

Total Non-Current Assets

170,618

143,782

TOTAL ASSETS

$            204,984

$            168,361

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Notes payable and other borrowings, current 

$                 8,091

$                 7,271

Accounts payable

10,140

5,113

Accrued compensation and related benefits

1,947

2,243

Deferred revenues

9,940

9,387

Other current liabilities

7,677

8,629

Total Current Liabilities

37,795

32,643

Non-Current Liabilities:

Notes payable and other borrowings, non-current

99,984

85,297

Income taxes payable

10,885

10,269

Operating lease liabilities

16,311

11,536

Other non-current liabilities

9,552

7,647

Total Non-Current Liabilities

136,732

114,749

Stockholders' Equity

30,457

20,969

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$            204,984

$            168,361

Q2 FISCAL 2026 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

Six Months Ended November 30,

2024

Cash Flows From Operating Activities:

Net income 

$        9,062

$        6,080

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

3,055

1,712

Amortization of intangible assets

826

1,215

Deferred income taxes

332

(601)

Stock-based compensation

2,280

2,176

Gains from investments and other, net

(2,227)

298

Changes in operating assets and liabilities:

Increase in trade receivables, net

(900)

(451)

Decrease in prepaid expenses and other assets

1,285

676

Decrease in accounts payable and other liabilities

(1,366)

(1,143)

Decrease in income taxes payable

(2,608)

(1,685)

Increase in deferred revenues

467

454

   Net cash provided by operating activities

10,206

8,731

Cash Flows From Investing Activities:

Purchases of marketable securities and other investments

(634)

(636)

Proceeds from sales and maturities of marketable securities and other investments

4,737

356

Capital expenditures

(20,535)

(6,273)

  Net cash used for investing activities

(16,432)

(6,553)

Cash Flows From Financing Activities:

Payments for repurchases of common stock

(95)

(300)

Proceeds from issuances of common stock

1,308

307

Shares repurchased for tax withholdings upon vesting of restricted stock-based awards

(109)

(898)

Payments of dividends to stockholders

(2,848)

(2,221)

Proceeds from (repayments of) commercial paper and other short-term financing, net 

886

(396)

Proceeds from issuances of senior notes and term loan credit agreements, net of issuance costs

17,880

11,837

Repayments of senior notes, term loan credit agreements and other borrowings

(2,122)

(9,700)

Other financing activities, net

(203)

(276)

  Net cash provided by (used for) financing activities

14,697

(1,647)

Effect of exchange rate changes on cash and cash equivalents

(16)

(44)

Net increase in cash and cash equivalents

8,455

487

Cash and cash equivalents at beginning of period

10,786

10,454

Cash and cash equivalents at end of period

$      19,241

$      10,941

 ORACLE  CORPORATION 

 Q2 FISCAL 2026 FINANCIAL RESULTS 

 FREE CASH FLOW - TRAILING FOUR-QUARTERS (1) 

 ($ in millions) 

 Fiscal 2025 

 Fiscal 2026 

 Q1 

 Q2 

 Q3 

 Q4 

 Q1