Oracle Announces Fiscal Year 2026 First Quarter Financial Results

Q1 Remaining Performance Obligations $455 billion, up 359% in both USD and constant currency Q1 GAAP Earnings per Share down 2% to $1.01, Non-GAAP Earnings per Share up 6% to $1.47 Q1 Total Revenue $14.9 billion, up 12% in USD and up 11% in constant currency Q1 Cloud Revenue (IaaS plus SaaS) $7.2 billion, up 28% in USD and up 27% in constant currency Q1 Cloud Infrastructure (IaaS) Revenue $3.3 billion, up 55% in USD and up 54% in constant currency Q1 Cloud Application (SaaS) Revenue $3.8 billion, up 11% in USD and up 10% in constant currency Q1 Fusion Cloud ERP (SaaS) Revenue $1.0 billion, up 17% in USD and up 16% in constant currency Q1 NetSuite Cloud ERP (SaaS) Revenue $1.0 billion, up 16% in USD and up 15% in constant currency , /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2026 Q1 results. Total Remaining Performance Obligations were up 359% year-over-year in both USD and constant currency to $455 billion. Total quarterly revenues were up 12% in USD, and up 11% in constant currency to $14.9 billion. Cloud revenues were up 28% in USD, and up 27% in constant currency to $7.2 billion. Software revenues were down 1% in USD, and down 2% in constant currency to $5.7 billion. Q1 GAAP operating income was $4.3 billion. Non-GAAP operating income was $6.2 billion, up 9% year-over-year in USD and up 7% in constant currency. GAAP net income was $2.9 billion. Non-GAAP net income was $4.3 billion, up 8% in USD and up 6% in constant currency. Q1 GAAP earnings per share was $1.01, down 2% in USD and down 5% in constant currency. Non-GAAP earnings per share was $1.47, up 6% in USD and up 4% in constant currency. Short-term deferred revenues were $12.1 billion. Over the last twelve months, operating cash flow was $21.5 billion, up 13% in USD. "We signed four multi-billion-dollar contracts with three different customers in Q1," said Oracle CEO, Safra Catz. "This resulted in RPO contract backlog increasing 359% to $455 billion. It was an astonishing quarter—and demand for Oracle Cloud Infrastructure continues to build. Over the next few months, we expect to sign-up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars. The scale of our recent RPO growth enables us to make a large upward revision to the Cloud Infrastructure portion of Oracle's overall financial plan which we will be presenting in detail next month at the Financial Analyst Meeting. As a bit of a preview, we expect Oracle Cloud Infrastructure revenue to grow 77% to $18 billion this fiscal year—and then increase to $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years. Most of the revenue in this 5-year forecast is already booked in our reported RPO. Oracle is off to a brilliant start to FY26." "MultiCloud database revenue from Amazon, Google and Microsoft grew at the incredible rate of 1,529% in Q1," said Oracle Chairman and CTO, Larry Ellison. "We expect MultiCloud revenue to grow substantially every quarter for several years as we deliver another 37 datacenters to our three Hyperscaler partners, for a total of 71. And next month at Oracle AI World, we will introduce a new Cloud Infrastructure service called the 'Oracle AI Database' that enables our customers to use the Large Language Model of their choice—including Google's Gemini, OpenAI's ChatGPT, xAI's Grok, etc.—directly on top of the Oracle Database to easily access and analyze all their existing database data. This revolutionary new cloud service enables the tens of thousands of our database customers to instantly unlock the value in their data by making it easily accessible to the most advanced AI reasoning models. Oracle AI Cloud Infrastructure and the Oracle MultiCloud AI Database will both contribute to dramatically increasing cloud demand and consumption over the next several years. AI Changes Everything." The board of directors declared a quarterly cash dividend of $0.50 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on October 9, 2025, with a payment date of October 23, 2025. A sample list of customers which purchased Oracle Cloud services during the quarter will be available at www.oracle.com/customers/earnings/. A list of recent technical innovations and announcements is available at www.oracle.com/news/. To learn what industry analysts have been saying about Oracle's products and services see www.oracle.com/corporate/analyst-reports/. Earnings Conference Call and Webcast Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor/. About Oracle Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com. Trademarks Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing. "Safe Harbor" Statement: Statements in this press release relating to future plans, expectations, beliefs, intentions and prospects, including future demand for our products, the functionality and benefits of new products and our expectations regarding growth in RPO, Oracle Cloud Infrastructure and MultiCloud revenue are "forward-looking statements" and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services, including our AI products; our management of complex cloud and hardware offerings, including the sourcing of technologies and technology components such as graphic processing units; our ability to anticipate, plan for, secure and manage datacenter capacity; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions; business volatility and risks associated with government contracting; economic, political and market conditions, including tariffs and trade wars; information technology system failures, privacy and data security concerns; cybersecurity breaches; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of September 9, 2025. Oracle undertakes no duty to update any statement in light of new information or future events. ORACLE CORPORATION Q1 FISCAL 2026 FINANCIAL RESULTS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in millions, except per share data) Three Months Ended August 31, % Increase % Increase (Decrease) 2025 % of 2024 % of (Decrease) in Constant Revenues Revenues in US $ Currency (1) REVENUES Cloud $ 7,186 48 % $ 5,623 42 % 28 % 27 % Software 5,721 38 % 5,766 44 % (1 %) (2 %) Hardware 670 5 % 655 5 % 2 % 1 % Services 1,349 9 % 1,263 9 % 7 % 5 % Total revenues 14,926 100 % 13,307 100 % 12 % 11 % OPERATING EXPENSES Cloud and software 3,607 24 % 2,597 19 % 39 % 38 % Hardware 178 1 % 162 1 % 10 % 9 % Services 1,099 7 % 1,147 9 % (4 %) (5 %) Sales and marketing 2,063 14 % 2,036 15 % 1 % 0 % Research and development 2,491 17 % 2,306 17 % 8 % 8 % General and administrative 376 2 % 358 3 % 5 % 4 % Amortization of intangible assets 420 3 % 624 5 % (33 %) (33 %) Acquisition related and other 13 0 % 13 0 % 10 % 8 % Restructuring 402 3 % 73 1 % 448 % 439 % Total operating expenses 10,649 71 % 9,316 70 % 14 % 14 % OPERATING INCOME 4,277 29 % 3,991 30 % 7 % 4 % Interest expense (923) (6 %) (842) (6 %) 10 % 10 % Non-operating income, net 73 0 % 20 0 % 250 % 286 % INCOME BEFORE INCOME TAXES 3,427 23 % 3,169 24 % 8 % 4 % Provision for income taxes (2) 500 3 % 240 2 % 108 % 101 % NET INCOME $ 2,927 20 % $ 2,929 22 % 0 % (4 %) EARNINGS PER SHARE: Basic $ 1.04 $ 1.06 Diluted $ 1.01 $ 1.03 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 2,826 2,761 Diluted 2,909 2,851 (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 August 31, 2025 compared with the corresponding prior year period increased our total revenues by 1 percentage point and operating income by 3 percentage points. (2) Provision for income taxes for the first quarter of fiscal 2026 includes the impact of the One, Big, Beautiful Bill Act, which was signed into law on July 4, 2025. ORACLE CORPORATION Q1 FISCAL 2026 FINANCIAL RESULTS RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) ($ in millions, except per share data) Three Months Ended August 31, % 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 $ 14,926 $ - $ 14,926 $ 13,307 $ - $ 13,307 12 % 12 % 11 % 11 % TOTAL OPERATING EXPENSES $ 10,649 $ (1,959) $ 8,690 $ 9,316 $ (1,717) $ 7,599 14 % 14 % 14 % 14 % Stock-based compensation (3) 1,124 (1,124) - 1,007 (1,007) - 12 % * 12 % * Amortization of intangible assets (4) 420 (420) - 624 (624) - (33 %) * (33 %) * Acquisition related and other 13 (13) - 13 (13) - 10 % * 8 % * Restructuring 402 (402) - 73 (73) - 448 % * 439 % * OPERATING INCOME $ 4,277 $ 1,959 $ 6,236 $ 3,991 $ 1,717 $ 5,708 7 % 9 % 4 % 7 % OPERATING MARGIN % 29 % 42 % 30 % 43 % (133) bp. (111) bp. (183) bp. (144) bp. INCOME TAX EFFECTS (5) $ 500 $ 603 $ 1,103 $ 240 $ 682 $ 922 108 % 20 % 101 % 17 % NET INCOME $ 2,927 $ 1,356 $ 4,283 $ 2,929 $ 1,035 $ 3,964 0 % 8 % (4 %) 6 % DILUTED EARNINGS PER SHARE $ 1.01 $ 1.47 $ 1.03 $ 1.39 (2 %) 6 % (5 %) 4 % DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 2,909 - 2,909 2,851 - 2,851 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 August 31, 2025 August 31, 2024 GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP Cloud and software $ 156 $ (156) $ - $ 141 $ (141) $ - Hardware 7 (7) - 6 (6) - Services 49 (49) - 43 (43) - Sales and marketing 177 (177) - 162 (162) - Research and development 647 (647) - 569 (569) - General and administrative 88 (88) - 86 (86) - Total stock-based compensation $ 1,124 $ (1,124) $ - $ 1,007 $ (1,007) $ - (4) Estimated future annual amortization expense related to intangible assets as of August 31, 2025 was as follows: Remainder of fiscal 2026 $ 1,219 Fiscal 2027 672 Fiscal 2028 635 Fiscal 2029 561 Fiscal 2030 522 Fiscal 2031 332 Thereafter 226 Total intangible assets, net $ 4,167 (5) Income tax effects were calculated reflecting an effective GAAP tax rate of 14.6% and 7.6% in the first quarter of fiscal 2026 and 2025, respectively, and an effective non-GAAP tax rate of 20.5% and 18.9% in the first quarter of fiscal 2026 and 2025, respectively. The difference in our GAAP and non-GAAP tax rates in the first quarter of fiscal 2026 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 impact of the One, Big, Beautiful Bill Act (refer to Appendix A for additional information), and net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure. The difference in our GAAP and non-GAAP tax rates in the first quarter of fiscal 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 Q1 FISCAL 2026 FINANCIAL RESULTS CONDENSED CONSOLIDATED BALANCE SHEETS ($ in millions) August 31, May 31, 2025 2025 ASSETS Current Assets: Cash and cash equivalents $ 10,445 $ 10,786 Marketable securities 560 417 Trade receivables, net 8,843 8,558 Prepaid expenses and other current assets 4,786 4,818 Total Current Assets 24,634 24,579 Non-Current Assets: Property, plant and equipment, net 53,194 43,522 Intangible assets, net 4,167 4,587 Goodwill 62,211 62,207 Deferred tax assets 11,734 11,877 Other non-current assets 24,509 21,589 Total Non-Current Assets 155,815 143,782 TOTAL ASSETS $ 180,449 $ 168,361 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Notes payable and other borrowings, current $ 9,079 $ 7,271 Accounts payable 8,203 5,113 Accrued compensation and related benefits 1,794 2,243 Deferred revenues 12,098 9,387 Other current liabilities 8,700 8,629 Total Current Liabilities 39,874 32,643 Non-Current Liabilities: Notes payable and other borrowings, non-current 82,236 85,297 Income taxes payable 10,583 10,269 Operating lease liabilities 14,094 11,536 Other non-current liabilities 8,996 7,647 Total Non-Current Liabilities 115,909 114,749 Stockholders' Equity 24,666 20,969 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 180,449 $ 168,361 ORACLE CORPORATION Q1 FISCAL 2026 FINANCIAL RESULTS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in millions) Three Months Ended August 31, 2025 2024 Cash Flows From Operating Activities: Net income $ 2,927 $ 2,929 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 1,351 804 Amortization of intangible assets 420 624 Deferred income taxes 515 (151) Stock-based compensation 1,124 1,007 Other, net 164 130 Changes in operating assets and liabilities: Increase in trade receivables, net (245) (81) Decrease in prepaid expenses and other assets 59 367 Decrease in accounts payable and other liabilities (334) (531) (Decrease) increase in income taxes payable (391) 24 Increase in deferred revenues 2,550 2,305 Net cash provided by operating activities 8,140 7,427 Cash Flows From Investing Activities: Purchases of marketable securities and other investments (471) (477) Proceeds from sales and maturities of marketable securities and other investments 255 15 Capital expenditures (8,502) (2,303) Net cash used for investing activities (8,718) (2,765) Cash Flows From Financing Activities: Payments for repurchases of common stock (95) (150) Proceeds from issuances of common stock 1,170 179 Shares repurchased for tax withholdings upon vesting of restricted stock-based awards (17) (851) Payments of dividends to stockholders (1,413) (1,103) Repayments of commercial paper, net (238) (396) Proceeds from issuances of term loan credit agreements - 5,627 Repayments of senior notes and other borrowings (1,052) (7,630) Other financing activities, net 1,855 (261) Net cash provided by (used for) financing activities 210 (4,585) Effect of exchange rate changes on cash and cash equivalents 27 85 Net (decrease) increase in cash and cash equivalents (341) 162 Cash and cash equivalents at beginning of period 10,786 10,454 Cash and cash equivalents at end of period $ 10,445 $ 10,616 ORACLE CORPORATION Q1 FISCAL 2026 FINANCIAL RESULTS FREE CASH FLOW - TRAILING 4-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 Capital Expenditures (7,855) (10,745) (14,933) (21,215) (27,414) Free Cash Flow $ 11,271 $ 9,542 $ 5,812 $ (394) $ (5,880) Operating Cash Flow % Growth over prior year 8 % 19 % 14 % 12 % 13 % Free Cash Flow % Growth over prior year 19 % (6 %) (53 %) (103 %) (152 %) GAAP Net Income $ 10,976 $ 11,624 $ 12,160 $ 12,443 $ 12,441 Operating Cash Flow as a % of Net Income 174 % 175 % 171 % 167 % 173 % Free Cash Flow as a % of Net Income 103 % 82 % 48 % (3 %) (47) % (1) To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows on a trailing 4-quarter basis to analyze cash flow generated from operations. We believe free cash flow is also useful as one of the bases for comparing our performance with our competitors. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from operating activities as a measure of liquidity. ORACLE CORPORATION Q1 FISCAL 2026 FINANCIAL RESULTS SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1) ($ in millions) Fiscal 2025 Fiscal 2026 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL REVENUES BY OFFERINGS Cloud $ 5,623 $ 5,937 $ 6,210 $ 6,737 $ 24,506 $ 7,186 $ 7,186 Software license 870 1,195 1,129 2,007 5,201 766 766 Software support 4,896 4,869 4,797 4,961 19,523 4,955 4,955 Software 5,766 6,064 5,926 6,968 24,724 5,721 5,721 Hardware 655 728 703 850 2,936 670 670 Services 1,263 1,330 1,291 1,348 5,233 1,349 1,349 Total revenues $ 13,307 $ 14,059 $ 14,130 $ 15,903 $ 57,399 $ 14,926 $ 14,926 AS REPORTED REVENUE GROWTH RATES Cloud 21 % 24 % 23 % 27 % 24 % 28 % 28 % Software license 7 % 1 % (10 %) 9 % 2 % (12 %) (12 %) Software support 0 % 0 % (2 %) 1 % 0 % 1 % 1 % Software 1 % 0 % (4 %) 3 % 0 % (1 %) (1 %) Hardware (8 %) (4 %) (7 %) 1 % (4 %) 2 % 2 % Services (9 %) (3 %) (1 %) (2 %) (4 %) 7 % 7 % Total revenues 7 % 9 % 6 % 11 % 8 % 12 % 12 % CONSTANT CURRENCY REVENUE GROWTH RATES (2) Cloud 22 % 24 % 25 % 27 % 24 % 27 % 27 % Software license 8 % 3 % (8 %) 8 % 3 % (13 %) (13 %) Software support 0 % 0 % 0 % 0 % 0 % (1 %) (1 %) Software 1 % 0 % (2 %) 2 % 1 % (2 %) (2 %) Hardware (8 %) (3 %) (5 %) 0 % (4 %) 1 % 1 % Services (8 %) (3 %) 1 % (2 %) (3 %) 5 % 5 % Total revenues 8 % 9 % 8 % 11 % 9 % 11 % 11 % CLOUD REVENUES BY OFFERINGS Cloud applications $ 3,469 $ 3,503 $ 3,558 $ 3,742 $ 14,272 $ 3,839 $ 3,839 Cloud infrastructure 2,154 2,434 2,652 2,995 10,234 3,347 3,347 Total cloud revenues $ 5,623 $ 5,937 $ 6,210 $ 6,737 $ 24,506 $ 7,186 $ 7,186 AS REPORTED REVENUE GROWTH RATES Cloud applications 10 % 10 % 9 % 12 % 10 % 11 % 11 % Cloud infrastructure 45 % 52 % 49 % 52 % 50 % 55 % 55 % Total cloud revenues 21 % 24 % 23 % 27 % 24 % 28 % 28 % CONSTANT CURRENCY REVENUE GROWTH RATES (2) Cloud applications 10 % 10 % 10 % 11 % 10 % 10 % 10 % Cloud infrastructure 46 % 52 % 51 % 52 % 51 % 54 % 54 % Total cloud revenues 22 % 24 % 25 % 27 % 24 % 27 % 27 % GEOGRAPHIC REVENUES Americas $ 8,372 $ 8,933 $ 9,000 $ 10,034 $ 36,339 $ 9,662 $ 9,662 Europe/Middle East/Africa 3,228 3,381 3,421 3,996 14,025 3,481 3,481 Asia Pacific 1,707 1,745 1,709 1,873 7,035 1,783 1,783 Total revenues $ 13,307 $ 14,059 $ 14,130 $ 15,903 $ 57,399 $ 14,926 $ 14,926 (1) The sum of the quarterly information presented may vary from the year-to-date information presented due to rounding. (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 and 2024 for the fiscal 2026 and fiscal 2025 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods. APPENDIX A ORACLE CORPORATIONQ1 FISCAL 2026 FINANCIAL RESULTSEXPLANATION OF NON-GAAP MEASURES To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial 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. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects related to each of the below items except for the impact of the One, Big, Beautiful Bill Act: Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses, income tax effects and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods. Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses, income tax effects and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods. Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses, income tax effects and net income measures. We incurred expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses consisted of personnel-related costs for transitional and certain other employees, certain business combination adjustments including certain adjustments after the measurement period has ended, and certain other operating items, net. Restructuring expenses consisted of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. Although acquisition related and other expenses and restructuring expenses may diminish over time with respect to past acquisitions and/or strategic initiatives, we generally will incur certain of these expenses in connection with any future acquisitions and/or strategic initiatives. Impact of the One, Big, Beautiful Bill Act (OBBBA): OBBBA was signed into law on July 4, 2025. We recorded a net tax expense of $958 million during the first quarter of fiscal 2026, primarily related to the remeasurement of a deferred tax liability previously recorded during fiscal 2021, as part of the partial realignment of our legal entity structure. We have excluded the impact of this charge from our non-GAAP income taxes and net income measures in the first quarter of fiscal 2026. We believe making these adjustments provides insight to our operating performance and comparability to past operating results. SOURCE Oracle WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Oracle Announces Fiscal Year 2026 First Quarter Financial Results

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