ORACLE  CORPORATION                            
 
Q3 FISCAL 2026 FINANCIAL RESULTS                            
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                            
($ in millions, except per share data)    

Three Months Ended February 28,

% Increase

% Increase

(Decrease)

2026

% of 

2025

% of 

(Decrease)

in Constant

Revenues

Revenues

in US $

Currency (1)

REVENUES

Cloud

$              8,914

52 %

$              6,210

44 %

44 %

41 %

Software

6,119

36 %

5,926

42 %

3 %

(1 %)

Hardware

714

4 %

703

5 %

2 %

(2 %)

Services

1,443

8 %

1,291

9 %

12 %

8 %

      Total revenues

17,190

100 %

14,130

100 %

22 %

18 %

OPERATING EXPENSES

Cloud and software

4,776

28 %

2,882

20 %

66 %

63 %

Hardware

183

1 %

197

1 %

(7 %)

(11 %)

Services

1,133

7 %

1,116

8 %

2 %

(2 %)

Sales and marketing

2,052

12 %

2,119

15 %

(3 %)

(6 %)

Research and development 

2,607

15 %

2,429

17 %

7 %

7 %

General and administrative

389

2 %

390

3 %

0 %

(2 %)

Amortization of intangible assets

413

2 %

548

4 %

(25 %)

(25 %)

Acquisition related and other

20

0 %

28

0 %

(28 %)

(27 %)

Restructuring

153

1 %

63

1 %

142 %

126 %

      Total operating expenses 

11,726

68 %

9,772

69 %

20 %

18 %

OPERATING INCOME

5,464

32 %

4,358

31 %

25 %

19 %

Interest expense

(1,180)

(7 %)

(892)

(6 %)

32 %

32 %

Non-operating income (expenses), net

132

1 %

(18)

0 %

*

*

INCOME BEFORE INCOME TAXES

4,416

26 %

3,448

25 %

28 %

20 %

Provision for income taxes

695

4 %

512

4 %

36 %

27 %

NET INCOME

$              3,721

22 %

$              2,936

21 %

27 %

18 %

Preferred stock dividends

22

-

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$              3,699

$              2,936

EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS:

Basic

$                1.29

$                1.05

Diluted

$                1.27

$                1.02

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

2,874

2,799

Diluted

2,912

2,874

(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 February 28, 2026 compared with the corresponding prior year period increased our total revenues by 4 percentage points, total operating expenses by 2 percentage points and

operating income by 6 percentage points.

*

Three Months Ended February 28,

% Increase

 (Decrease)
in US $

% Increase (Decrease)

in Constant Currency (2) 

2026

2026

2025

2025

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

TOTAL REVENUES

$         17,190

$             -

$         17,190

$         14,130

$             -

$         14,130

22 %

22 %

18 %

18 %

TOTAL OPERATING EXPENSES

$         11,726

$     (1,914)

$           9,812

$           9,772

$     (1,837)

$           7,935

20 %

24 %

18 %

21 %

Stock-based compensation (3)

1,328

(1,328)

-

1,198

(1,198)

-

11 %

*

11 %

*

 Amortization of intangible assets (4)

413

(413)

-

548

(548)

-

(25 %)

*

(25 %)

*

Acquisition related and other

20

(20)

-

28

(28)

-

(28 %)

*

(27 %)

*

Restructuring

153

(153)

-

63

(63)

-

142 %

*

126 %

*

OPERATING INCOME

$           5,464

$       1,914

$           7,378

$           4,358

$       1,837

$           6,195

25 %

19 %

19 %

14 %

OPERATING MARGIN %

32 %

43 %

31 %

44 %

94 bp.

(92) bp.

16 bp.

(135) bp.

INCOME TAX EFFECTS (5)

$               695

$          412

$           1,107

$               512

$          542

$           1,054

36 %

5 %

27 %

0 %

NET INCOME

$           3,721

$       1,502

$           5,223

$           2,936

$       1,295

$           4,231

27 %

23 %

18 %

18 %

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$           3,699

$       1,502

$           5,201

$           2,936

$       1,295

$           4,231

26 %

23 %

18 %

17 %

DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO

COMMON SHAREHOLDERS

$              1.27

$              1.79

$              1.02

$              1.47

24 %

21 %

16 %

16 %

2,912

-

2,912

2,874

-

2,874

1 %

1 %

1 %

1 %

(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

February 28, 2026

February 28, 2025

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

Cloud and software

$               171

$        (171)

$                  -

$               160

$        (160)

$                  -

Hardware

8

(8)

-

8

(8)

-

Services

58

(58)

-

54

(54)

-

Sales and marketing

212

(212)

-

200

(200)

-

Research and development

785

(785)

-

675

(675)

-

General and administrative

94

(94)

-

101

(101)

-

     Total stock-based compensation

$           1,328

$     (1,328)

$                  -

$           1,198

$     (1,198)

$                  -

(4)

Estimated future annual amortization expense related to intangible assets as of February 28, 2026 was as follows:

     Remainder of fiscal 2026

$               421

     Fiscal 2027

729

     Fiscal 2028

692

     Fiscal 2029

618

     Fiscal 2030

580

     Fiscal 2031

375

     Thereafter

226

          Total intangible assets, net

$           3,641

(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 15.7% and 14.9% in the third quarter of fiscal 2026 and 2025, respectively, and an effective non-GAAP tax rate of 17.5% and 19.9% in the third quarter of

fiscal 2026 and 2025, respectively. The difference in our GAAP and non-GAAP tax rates in each of the third 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.

ORACLE  CORPORATION
 
Q3 FISCAL 2026 YEAR TO DATE FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)

Nine Months Ended February 28,

% Increase

% Increase

(Decrease)

2026

% of 

2025

% of 

(Decrease)

in Constant

Revenues

Revenues

in US $

Currency (1)

REVENUES

Cloud

$           24,076

50 %

$           17,769

43 %

35 %

34 %

Software

17,717

37 %

17,756

43 %

0 %

(3 %)

Hardware

2,160

4 %

2,086

5 %

4 %

1 %

Services

4,220

9 %

3,885

9 %

9 %

7 %

      Total revenues

48,173

100 %

41,496

100 %

16 %

14 %

OPERATING EXPENSES

Cloud and software

12,373

26 %

8,226

20 %

50 %

49 %

Hardware

576

1 %

530

1 %

9 %

6 %

Services

3,401

7 %

3,430

8 %

(1 %)

(3 %)

Sales and marketing

6,263

13 %

6,345

15 %

(1 %)

(3 %)

Research and development 

7,658

16 %

7,206

18 %

6 %

6 %

General and administrative

1,174

2 %

1,135

3 %

3 %

2 %

Amortization of intangible assets

1,239

3 %

1,763

4 %

(30 %)

(30 %)

Acquisition related and other

55

0 %

72

0 %

(24 %)

(25 %)

Restructuring

961

2 %

220

1 %

337 %

325 %

      Total operating expenses 

33,700

70 %

28,927

70 %

17 %

15 %

OPERATING INCOME 

14,473

30 %

12,569

30 %

15 %

11 %

Interest expense

(3,160)

(6 %)

(2,600)

(6 %)

22 %

22 %

Non-operating income, net

2,872

6 %

39

0 %

*

*

INCOME BEFORE INCOME TAXES

14,185

30 %

10,008

24 %

42 %

36 %

Provision for income taxes (2)

1,402

3 %

992

2 %

41 %

35 %

NET INCOME 

$           12,783

27 %

$              9,016

22 %

42 %

36 %

Preferred stock dividends

22

-

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$           12,761

$              9,016

EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS:

Basic

$                4.47

$                3.24

Diluted

$                4.38

$                3.15

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

2,855

2,783

Diluted

2,914

2,865

(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 nine months ended February 28, 2026 compared

with the corresponding prior year period increased our total revenues by 2 percentage points, total operating expenses by 2 percentage points and operating

income by 4 percentage points.

(2)

Provision for income taxes for the nine months ended February 28, 2026 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
 
Q3 FISCAL 2026 YEAR TO DATE FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) 
($ in millions, except per share data)

Nine Months Ended February 28,

% Increase (Decrease)
in US $

% Increase (Decrease)

in Constant Currency (2) 

2026

2026

2025

2025

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

TOTAL REVENUES

$         48,173

$             -

$         48,173

$         41,496

$             -

$         41,496

16 %

16 %

14 %

14 %

TOTAL OPERATING EXPENSES

$         33,700

$     (5,863)

$         27,837

$         28,927

$     (5,429)

$         23,498

17 %

18 %

15 %

17 %

     Stock-based compensation (3)

3,608

(3,608)

-

3,374

(3,374)

-

7 %

*

7 %

*

     Amortization of intangible assets (4)

1,239

(1,239)

-

1,763

(1,763)

-

(30 %)

*

(30 %)

*

     Acquisition related and other

55

(55)

-

72

(72)

-

(24 %)

*

(25 %)

*

     Restructuring

961

(961)

-

220

(220)

-

337 %

*

325 %

*

OPERATING INCOME

$         14,473

$       5,863

$         20,336

$         12,569

$       5,429

$         17,998

15 %

13 %

11 %

10 %

OPERATING MARGIN %

30 %

42 %

30 %

43 %

(25) bp.

(116) bp.

(81) bp.

(149) bp.

INCOME TAX EFFECTS (5)

$           1,402

$       2,543

$           3,945

$               992

$       2,042

$           3,034

41 %

30 %

35 %

26 %

NET INCOME 

$         12,783

$       3,320

$         16,103

$            9,016

$       3,387

$         12,403

42 %

30 %

36 %

26 %

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$         12,761

$       3,320

$         16,081

$            9,016

$       3,387

$         12,403

42 %

30 %

36 %

26 %

DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO

COMMON SHAREHOLDERS

$             4.38

$             5.52

$              3.15

$              4.33

39 %

27 %

33 %

24 %

DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING

2,914

-

2,914

2,865

-

2,865

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:

Nine Months Ended

Nine Months Ended

February 28, 2026

February 28, 2025

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

Cloud and software

$               478

$        (478)

$                  -

$               459

$        (459)

$                  -

Hardware

21

(21)

-

21

(21)

-

Services

158

(158)

-

150

(150)

-

Sales and marketing

574

(574)

-

556

(556)

-

Research and development

2,100

(2,100)

-

1,902

(1,902)

-

General and administrative

277

(277)

-

286

(286)

-

           Total stock-based compensation

$           3,608

$     (3,608)

$                  -

$           3,374

$     (3,374)

$                  -

(4)

Estimated future annual amortization expense related to intangible assets as of February 28, 2026 was as follows:

     Remainder of fiscal 2026

$               421

     Fiscal 2027

729

     Fiscal 2028

692

     Fiscal 2029

618

     Fiscal 2030

580

     Fiscal 2031

375

     Thereafter

226

           Total intangible assets, net

$           3,641

(5)

Income tax effects were calculated reflecting an effective GAAP tax rate and non-GAAP tax rate of 9.9% and 19.7%, respectively, in each of the first nine months of fiscal 2026 and 2025. The difference in our GAAP and non-

GAAP tax rates in each of the first nine months 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 nine months 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
 
Q3 FISCAL 2026 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in millions)    

2025

 ASSETS

 Current Assets: 

Cash and cash equivalents

$               38,455

$               10,786

Marketable securities

677

417

Trade receivables, net

10,719

8,558

Prepaid expenses and other current assets

5,023

4,818

Total Current Assets 

54,874

24,579

 Non-Current Assets: 

   Property, plant and equipment, net

83,617

43,522

   Intangible assets, net

3,641

4,587

   Goodwill

62,274

62,207

   Deferred tax assets

11,360

11,877

   Other non-current assets

29,474

21,589

Total Non-Current Assets 

190,366

143,782

 TOTAL ASSETS 

$             245,240

$             168,361

 LIABILITIES AND STOCKHOLDERS' EQUITY 

 Current Liabilities: 

Notes payable and other borrowings, current 

$                 9,887

$                 7,271

Accounts payable

9,474

5,113

Accrued compensation and related benefits

1,940

2,243

Deferred revenues

9,881

9,387

Other current liabilities

9,555

8,629

 Total Current Liabilities 

40,737

32,643

 Non-Current Liabilities: 

Notes payable and other borrowings, non-current

124,718

85,297

Income taxes payable

11,402

10,269

Operating lease liabilities

18,512

11,536

Other non-current liabilities

10,820

7,647

 Total Non-Current Liabilities 

165,452

114,749

 Stockholders' Equity 

39,051

20,969

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 

$             245,240

$             168,361

ORACLE  CORPORATION     
 
Q3 FISCAL 2026 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS    
($ in millions)    
    

Cash Flows From Operating Activities: 

Net income 

$       12,783

$         9,016

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

Depreciation

5,208

2,715

Amortization of intangible assets

1,239

1,763

Deferred income taxes

(295)

(1,097)

Stock-based compensation

3,608

3,374

Gains from investments and other, net

(2,149)

422

Changes in operating assets and liabilities:

Increase in trade receivables, net

(2,201)

(312)

Decrease in prepaid expenses and other assets

1,386

603

Decrease in accounts payable and other liabilities

(821)

(633)

Decrease in income taxes payable

(1,651)

(1,222)

Increase in deferred revenues

250

35

 Net cash provided by operating activities 

17,357

14,664

 Cash Flows From Investing Activities: 

Purchases of marketable securities and other investments

(1,663)

(838)

Proceeds from sales and maturities of marketable securities and other investments

4,857

444

Capital expenditures

(39,170)

(12,135)

 Net cash used for investing activities 

(35,976)

(12,529)

 Cash Flows From Financing Activities: 

Proceeds from issuances of common stock

1,317

520

Payments for repurchases of common stock

(95)

(450)

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

(111)

(900)

Proceeds from issuances of mandatory convertible preferred stock, net of issuance costs

4,954

-

Payments of dividends to stockholders

(4,285)

(3,340)

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

2,279

(396)

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

44,544

19,548

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

(2,193)

(9,771)

Other financing activities, net

(215)

(299)

 Net cash provided by financing activities 

46,195

4,912

Effect of exchange rate changes on cash and cash equivalents 

(95)

 Net increase in cash and cash equivalents 

27,669

6,952

 Cash and cash equivalents at beginning of period 

10,786

10,454

 Cash and cash equivalents at end of period 

$       38,455

$       17,406

ORACLE  CORPORATION
 Q3 FISCAL 2026 FINANCIAL RESULTS
 FREE CASH FLOW - TRAILING FOUR-QUARTERS (1)
 ($ in millions)            

 Fiscal 2025 

 Fiscal 2026 

 Q1 

 Q2 

 Q3 

 Q4 

 Q1 

 Q2 

 Q3 

 Q4 

GAAP Operating Cash Flow

$             19,126

$             20,287

$             20,745

$             20,821

$             21,534

$             22,296

$             23,514

‌   

Capital Expenditures

(7,855)

(10,745)

(14,933)

(21,215)

(27,414)

(35,477)

(48,250)

Free Cash Flow

$             11,271

$               9,542

$               5,812

$                (394)

$             (5,880)

$           (13,181)

$           (24,736)

Operating Cash Flow % Growth over prior year

8 %

19 %