A maker of cloud applications and cloud infrastructure that power much of the world's business software—from NetSuite accounting and Fusion Cloud ERP to database and AI computing services used by hospitals, retailers, and governments. Founded in 1977 as Software Development Laboratories by Larry Ellison and two partners, the company took its name from "Oracle," the codename of a CIA database project the founders had worked on earlier. Its first database shipped as "Oracle v2," deliberately skipping version 1 to sound more established.
10-K · Fiscal year ended May 31, 2026 · SEC filing ↗
Oracle FY2026 free cash flow swung to -$23.7B as capex rose $34.4B for data centers
Cloud infrastructure rose 77% and pulled the company's growth story past its old software base. Revenue rose 17% to $67.4B and rose 34% to $5.83 as cloud infrastructure expansion drove the increase, while held at 31% and turned negative at -$23.7B on a $34.4B increase. Oracle is now a cloud-infrastructure-led business carrying $129.5B of debt and negative free cash flow to fund it.
Key takeaways
turned negative at -$23.7B for the year as rose $34.4B to expand data center capacity, funded by $42.7B in new senior note issuances.
Cloud infrastructure rose 77% to $18.1B and contributed 84% of constant-currency cloud growth, lifting cloud and software to 87% of total revenue and pushing cloud's share of the total to 51% from 37% in FY2024.
Total rose 17% to $67.4B and rose 37% to $17.1B, with at $5.83, while held at 31% as a $1.5B increase in and higher infrastructure expenses were offset by revenue scale.
Section summaries
Business
Oracle provides enterprise IT products and services—cloud applications, cloud infrastructure, software licenses, hardware, and support—delivered worldwide through flexible cloud, on-premise, and hybrid models.
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Oracle operates three businesses—cloud and software, hardware, and services—with cloud revenues reaching 51% of total revenues in fiscal 2026, up from 37% in fiscal 2024.
Cloud and software declined to 59% from 63% as a $5.7B increase in infrastructure expenses to support cloud growth outpaced gains.
rose to $638B from $138B, driven by new cloud contracts signed during the period.
The company ended the year with a $129.5B debt load and of $43.1B, up from $21.0B a year earlier.
What changed
Cloud services growth held above 24% for the year at 77% infrastructure-led growth, answering the FY2025 watch item; the mix shifted sharply to infrastructure from applications' 11% rise.
went from $11.8B in FY2024 to -$394M in FY2025 to -$23.7B in FY2026 as rose from $21.2B to $34.4B above the prior year, confirming the flagged negative trajectory as data center spending accelerated.
Cerner acquisition debt load rose from $90.5B at FY2023 end to $92.6B at FY2025 end to $129.5B at FY2026 end, with refinancing ongoing via $42.7B new this year against maturities.
Cloud and software fell to 59% from 63% after the FY2025 watch flagged the decline; the drop accelerated from prior years as infrastructure expense growth continued.
rose from $138B to $638B, a far steeper climb than the $455B–$552B trailing figures flagged in quarterly filings, signaling contracted cloud demand not yet in .
What to watch
Cloud infrastructure growth rate next year after rising 77% to $18.1B in FY2026
Trailing and annual as stays elevated above $34.4B for data center capacity
Cloud and software next year after declining to 59% from 63%
Debt load and refinancing against the $129.5B total as come due
Its cloud offerings include for ERP, HCM, CX, NetSuite, and healthcare, and for compute, storage, AI, and database services.
Oracle invests heavily in R&D ($10.3 billion in fiscal 2026) to embed AI across its portfolio and to improve performance, security, and cost-effectiveness relative to competitors.
The company offers flexible deployment options including multicloud, hybrid (e.g., ), and dedicated regions, aiming to migrate its large on-premise installed base to the cloud.
Oracle faces intense competition from major firms like Microsoft, Amazon, SAP, and Salesforce, as well as specialized healthcare IT providers following the Cerner acquisition.
As of May 31, 2026, Oracle employed approximately 141,000 people globally, with 43,000 in research and development and 34,000 in services.
Oracle faces material risks from AI product execution, cloud infrastructure scaling, supply chain constraints, and evolving global regulations.
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AI products may fail to operate as anticipated or meet evolving legal and ethical standards, potentially harming reputation and .
Failure to secure affordable data center capacity or accurately plan infrastructure could lead to lost business or locked-in costs without corresponding .
Supply chain dependencies on single-source vendors for components like GPUs create risks of shortages, cost increases, and excess obsolescence.
Intense competition, including from large cloud rivals and multicloud strategies, may pressure pricing and cause customer migration away from Oracle.
Evolving global regulations on AI, data privacy, and trade could increase compliance costs, limit product offerings, or restrict operations in key jurisdictions.
A substantial debt load of $129.5 billion and potential refinancing risks could increase fixed obligations and .
Our properties consist of owned and leased facilities for cloud operations, sales, support, research and development, services, manufacturing and administrative and other functions. Our headquarters facility consists of approximately 0.9 million square feet in Austin, Texas, all…
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Our properties consist of owned and leased facilities for cloud operations, sales, support, research and development, services, manufacturing and administrative and other functions. Our headquarters facility consists of approximately 0.9 million square feet in Austin, Texas, all of which we own. We also own or lease office facilities for current use consisting of approximately 25.4 million square feet in various other locations in the U.S. and abroad. Approximately 11.9 million square feet, or 45%, of our total owned and leased office facilities are sublet or are being actively marketed for sublease or disposition. We lease our principal internal manufacturing facility for our hardware products in Hillsboro, Oregon. Additionally, we have approximately 181 data center locations globally, substantially all of which are leased and used to deliver our Oracle Cloud offerings. We believe that our facilities are in good condition and suitable for the conduct of our business.
The material set forth in Note 12 (pertaining to information regarding contingencies related to our income taxes) and Note 15 (pertaining to information regarding legal contingencies) of Notes to Consolidated Financial Statements in Item 15 of this Annual Report is incorporated…
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The material set forth in Note 12 (pertaining to information regarding contingencies related to our income taxes) and Note 15 (pertaining to information regarding legal contingencies) of Notes to Consolidated Financial Statements in Item 15 of this Annual Report is incorporated herein by reference.
Quantitative and Qualitative Disclosures About Market Risk
The company faces material foreign-currency translation and transaction risk, partially hedged with short-term forward contracts.
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A 10% adverse move in foreign exchange rates would reduce annual by an estimated $2.8 billion and cash/ fair values by $2.4 billion.
Translation risk arises because a significant portion of consolidated revenues and expenses is generated in non-U.S. Dollar currencies.
Transaction risk stems mainly from intercompany exposures in currencies including the Australian Dollar, Euro, British Pound, Indian Rupee, and Japanese Yen.
The company uses short-duration to partially offset transaction exposures, not for trading.
Realized gains and losses on exposures and hedges are reported in .