Financial Analysis

6. NOTES PAYABLE AND OTHER BORROWINGS Notes payable and other borrowings consisted of the following: May 31, 2026 2025 (Amounts in millions) Date of Issuance Amount Effective Interest Rate Amount Effective Interest Rate Fixed-rate senior notes: 750 , 3.125 %, due July 2025 (1) July 2013 $ N.A $ 841 3.17 % $ 1,000 , 5.80 %, due November 2025 November 2022 N.A 1,000 5.93 % $ 2,750 , 1.65 %, due March 2026 March 2021 N.A 2,750 1.67 % $ 3,000 , 2.65 %, due July 2026 July 2016 3,000 2.73 % 3,000 2.73 % $ 2,250 , 2.80 %, due April 2027 April 2020 2,250 2.87 % 2,250 2.87 % $ 2,750 , 3.25 %, due November 2027 November 2017 2,750 3.29 % 2,750 3.29 % $ 2,000 , 2.30 %, due March 2028 March 2021 2,000 2.36 % 2,000 2.36 % $ 750 , 4.50 %, due May 2028 February 2023 750 4.60 % 750 4.60 % $ 1,500 , 4.80 %, due August 2028 February 2025 1,500 4.94 % 1,500 4.94 % $ 3,000 , 4.55 %, due February 2029 (3) February 2026 3,000 4.74 % N.A $ 1,500 , 4.20 %, due September 2029 September 2024 1,500 4.27 % 1,500 4.27 % $ 1,250 , 6.15 %, due November 2029 November 2022 1,250 6.21 % 1,250 6.21 % $ 3,250 , 2.95 %, due April 2030 April 2020 3,250 3.00 % 3,250 3.00 % $ 750 , 4.65 %, due May 2030 February 2023 750 4.75 % 750 4.75 % $ 500 , 3.25 %, due May 2030 May 2015 500 3.35 % 500 3.35 % $ 3,000 , 4.45 %, due September 2030 (3) September 2025 3,000 4.55 % N.A $ 3,500 , 4.95 %, due February 2031 (3) February 2026 3,500 5.08 % N.A $ 3,250 , 2.875 %, due March 2031 March 2021 3,250 2.92 % 3,250 2.92 % $ 1,250 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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 (1) Comprises Europe, the Middle East and Africa 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

DisaggregationOfRevenueTableTextBlock

3. FAIR VALUE MEASUREMENTS We perform fair value measurements in accordance with ASC 820. ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at their fair values, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the assets or liabilities, such as inherent risk, transfer restrictions and risk of nonperformance. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An assets or a liabilitys categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value: Level 1: quoted prices in active markets for identical assets or liabilities; Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market dat …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

5. INTANGIBLE ASSETS AND GOODWILL The changes in intangible assets for fiscal 2026 and the net book value of intangible assets as of May 31, 2026 and 2025 were as follows: Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net (in millions) May 31, 2025 Additions Retirements May 31, 2026 May 31, 2025 Expense Retirements May 31, 2026 May 31, 2025 May 31, 2026 Cloud and software agreements and related relationships $ 9,670 $ $ ( 1,794 ) $ 7,876 $ ( 6,471 ) $ ( 558 ) $ 1,794 $ ( 5,235 ) $ 3,199 $ 2,641 Developed technology 4,143 287 ( 425 ) 4,005 ( 3,509 ) ( 627 ) 425 ( 3,711 ) 634 294 Other 2,827 26 ( 173 ) 2,680 ( 2,073 ) ( 486 ) 173 ( 2,386 ) 754 294 Total intangible assets, net $ 16,640 $ 313 $ ( 2,392 ) $ 14,561 $ ( 12,053 ) $ ( 1,671 ) $ 2,392 $ ( 11,332 ) $ 4,587 $ 3,229 As of May 31, 2026, estimated future amortization expenses related to intangible assets were as follows (in millions): Fiscal 2027 $ 731 Fiscal 2028 694 Fiscal 2029 620 Fiscal 2030 582 Fiscal 2031 377 Thereafter 225 Total intangible assets, net $ 3,229 The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, for our operating segments for fiscal 2026 and 2025 were as follows: (in millions) Cloud and Software Hardware Services Total Goodwill Balances as of May 31, 2024 $ 57,072 $ 2,732 $ 2,426 $ 62,230 Goodwill adjustments, net (1) ( 23 ) ( 23 ) Balances as of May 31, 2025 57,049 2,732 2,426 62,207 Goodwill adjustments, net (1) 65 ( 11 ) 54 Bala …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

12. INCOME TAXES Our effective tax rates for each of the periods presented are the result of the mix of income earned and losses incurred in various tax jurisdictions that apply a broad range of income tax rates. Our provision for income taxes varied from the tax computed at the U.S. federal statutory income tax rate for fiscal 2026, 2025 and 2024 primarily due to earnings in foreign operations, state taxes, the U.S. research and development tax credit, settlements with tax authorities, the tax effects of stock-based compensation, the Foreign Derived Intangible Income deduction and the tax effect of Global Intangible Low-Taxed Income (GILTI). The following is a geographical breakdown of income before income taxes: Year Ended May 31, (in millions) 2026 2025 2024 Domestic $ 8,693 $ 4,376 $ 3,023 Foreign 10,861 9,784 8,718 Income before income taxes $ 19,554 $ 14,160 $ 11,741 The provision for income taxes consisted of the following: Year Ended May 31, (Dollars in millions) 2026 2025 2024 Current provision: Federal $ 1,072 $ 1,172 $ 999 State 307 196 420 Foreign 2,005 1,986 1,994 Total current provision $ 3,384 $ 3,354 $ 3,413 Deferred benefit: Federal $ ( 1,783 ) $ ( 2,208 ) $ ( 2,020 ) State ( 152 ) ( 202 ) ( 280 ) Foreign 1,018 773 161 Total deferred benefit $ ( 917 ) $ ( 1,637 ) $ ( 2,139 ) Total provision for income taxes $ 2,467 $ 1,717 $ 1,274 Effective income tax rate 12.6 % 12.1 % 10.9 % In fiscal year ended May 31, 2026, we adopted ASU 2023-09 prospectively. The follow …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

15. LEGAL PROCEEDINGS Netherlands Privacy Class Action On August 14, 2020, The Privacy Collective (TPC), a foundation having its registered office in Amsterdam, filed a purported class action lawsuit against Oracle Nederland B.V, Oracle Corporation and Oracle America, Inc. (the Oracle Defendants), Salesforce.com, Inc. and SFDC Netherlands B.V. in the District Court of Amsterdam. TPC alleges that the Oracle Defendants Data Management Platform product violates certain articles of the European Union Charter of Fundamental Rights, the General Data Protection Regulation (GDPR) and the Dutch Telecommunications Act (Telecommunicatiewet). TPC claims damages under a number of categories, including: immaterial damages (at a fixed amount of 500 per Dutch internet user); material damages (in that the costs of loss of control over personal data should be equated to the market value of the personal data for parties like the Oracle Defendants); compensation for losses suffered due to an alleged data breach (at a fixed amount of 100 per Dutch internet user); and compensation for the costs of the litigation funder ( 10 % to 25 % of the compensation awarded); and the (actual) cost of the proceedings and extrajudicial costs. We filed our defense on March 3, 2021, and on December 29, 2021, the District Court issued a judgment, holding that all of TPCs claims were deemed inadmissible because of fundamental procedural flaws. TPC filed an appeal with the Court of Appeal in Amsterdam challenging the …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Income Statement : In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses and also issued subsequent guidance clarifying the effective date of the initial guidance (collectively, Subtopic 220-40), which enhances the disclosures required for expense disaggregation in our annual and interim consolidated financial statements. This guidance is effective for us for our annual reporting for fiscal 2028 and for interim period reporting beginning in fiscal 2029 on a prospective basis. Both early adoption and retrospective application are permitted. We are currently evaluating the impact of our pending adoption of Subtopic 220-40 on our consolidated financial statements. Software Development Costs : In September 2025, the FASB issued ASU 2025-06, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06), which clarifies and modernizes the accounting for internal-use software. ASU 2025-06 is effective for us in the first quarter of fiscal 2029, with early adoption permitted. The standard permits application of the guidance using a prospective, retrospective, or modified transition approach. We are currently evaluating the impact of our pending adoption of ASU 2025-06 on our consolidated financial statements. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

7. RESTRUCTURING AND OTHER EXPENSES Restructuring and other expenses line item on our consolidated statement of operations consist of restructuring expenses for employee severance costs, contract termination costs and certain other exit costs to improve our cost structure prospectively. The restructuring expenses resulted from the execution of management-approved restructuring plans that were developed for certain strategic initiatives and/or to improve operational efficiencies, as further described below; and other operating expenses, net. Year Ended May 31, (in millions) 2026 2025 2024 Restructuring $ 1,779 $ 299 $ 404 Other, net 59 75 314 Total restructuring and other expenses $ 1,838 $ 374 $ 718 Fiscal 2026 Oracle Restructuring Plan During fiscal 2026, our management approved, committed to, initiated and further supplemented plans to restructure to implement certain strategic measures and further improve operational efficiencies, including through the adoption and integration of AI technologies across certain functions and other operational activities (2026 Restructuring Plan). The total estimated restructuring costs associated with the 2026 Restructuring Plan are up to $ 2.1 billion and will be recorded to the restructuring and other expense line item within our consolidated statements of operations through the end of the plan. We recorded $ 1.8 billion of restructuring expenses in connection with the 2026 Restructuring Plan in fiscal 2026. Any changes to the estimates o …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

8. DEFERRED REVENUES Deferred revenues consisted of the following: May 31, (in millions) 2026 2025 Cloud $ 3,228 $ 2,959 Software 5,662 5,350 Hardware 521 614 Services 505 464 Deferred revenues, current 9,916 9,387 Deferred revenues, non-current (in other non-current liabilities) 5,479 1,346 Total deferred revenues $ 15,395 $ 10,733 Deferred cloud revenues, deferred software revenues and deferred hardware revenues substantially represent customer payments made in advance for cloud or support contracts that are billed in advance with corresponding revenues generally being recognized ratably or based upon customer usage over the respective contractual periods. Deferred services revenues include prepayments for our services business a nd revenues for these services are generally recognized as the services are performed.

RevenueFromContractWithCustomerTextBlock

13. SEGMENT INFORMATION 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 Chief Executive Officers and Chief Technology Officer . 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 businessescloud and software (formerly referred to as cloud and license), hardware and services each of which is comprised of a single 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 segments profit or loss, that is regularly provided to our CODMs for their review and assists our CODMs with evaluating the companys 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 o …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

10. STOCKHOLDERS EQUITY Mandatory Convertible Preferred Stock On February 5, 2026, we issued 100,000,000 depositary shares, representing 50,000 shares of our 6.50 % Series D Mandatory Convertible Preferred Stock (Mandatory Convertible Preferred Stock). The Mandatory Convertible Preferred Stock has a $ 100,000 per share liquidation preference and $ 0.01 per share par value. The proceeds from the issuance of Mandatory Convertible Preferred Stock will be used for general corporate purposes, which may include capital expenditures, repayment of indebtedness, future investments or acquisitions and payment of cash dividends on or repurchases of our common stock. Dividends are cumulative at an annual rate of 6.50 % on the liquidation preference of $ 100,000 per share of Mandatory Convertible Preferred Stock and may be paid in cash, shares of our common stock or a combination of cash and shares of our common stock. Dividends that are declared will be payable on January 15, April 15, July 15 and October 15 to holders of record on January 1, April 1, July 1 and October 1 immediately preceding the relevant dividend payment date. Unless earlier converted, each outstanding share of Mandatory Convertible Preferred Stock will automatically convert on the mandatory conversion date, which is January 15, 2029, into between 499.8126 and 624.7657 shares of our common stock, depending on the applicable market value of our common stock upon conversion and subject to certain anti-dilution adjustment …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

3. NOTES PAYABLE AND OTHER BORROWINGS Senior Notes In September 2025, we issued $ 18.0 billion par value of fixed-rate senior notes comprising the following: November 30, 2025 (Dollars in millions) Amount Effective Interest Rate $ 3,000 , 4.45 %, due September 2030 $ 3,000 4.55 % $ 3,000 , 4.80 %, due September 2032 3,000 4.87 % $ 4,000 , 5.20 %, due September 2035 4,000 5.25 % $ 2,500 , 5.875 %, due September 2045 2,500 5.91 % $ 3,500, 5.95 %, due September 2055 3,500 6.05 % $ 2,000 , 6.10 %, due September 2065 2,000 6.17 % Total fixed-rate senior notes $ 18,000 Unamortized discount/issuance costs ( 118 ) Total fixed-rate senior notes, net $ 17,882 We issued the senior notes for general corporate purposes, which may include capital expenditures, repayment of indebtedness, future investments or acquisitions and payment of cash dividends on or repurchases of our common stock. The interest is payable semi-annually. We may redeem some or all of the senior notes of each series prior to their maturity, subject to certain restrictions and the payment of an applicable make-whole premium in certain instances. The senior notes rank pari passu with any other existing and future unsecured and unsubordinated indebtedness of Oracle. All existing and future indebtedness and liabilities of the subsidiaries of Oracle are or will be effectively senior to the senior notes. We were in compliance with all senior notes-related covenants as of November 30, 2025. The other terms and conditions of t …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table is a summary of our total revenues by geographic region: Three Months Ended November 30, Six Months Ended November 30, (in millions) 2025 2024 2025 2024 Americas $ 10,467 $ 8,933 $ 20,129 $ 17,305 EMEA (1) 3,760 3,381 7,240 6,609 Asia Pacific 1,831 1,745 3,614 3,452 Total revenues $ 16,058 $ 14,059 $ 30,983 $ 27,366 (1) Comprised of Europe, the Middle East and Africa The following table presents our software revenues by offerings: Three Months Ended November 30, Six Months Ended November 30, (in millions) 2025 2024 2025 2024 Software license $ 939 $ 1,195 $ 1,705 $ 2,065 Software support 4,938 4,869 9,893 9,765 Total software revenues $ 5,877 $ 6,064 $ 11,598 $ 11,830 The following table presents our cloud revenues by offerings: Three Months Ended November 30, Six Months Ended November 30, (in millions) 2025 2024 2025 2024 Cloud applications $ 3,898 $ 3,503 $ 7,736 $ 6,971 Cloud infrastructure 4,079 2,434 7,426 4,588 Total cloud revenues $ 7,977 $ 5,937 $ 15,162 $ 11,559

DisaggregationOfRevenueTableTextBlock

2. FAIR VALUE MEASUREMENTS We perform fair value measurements in accordance with FASB Accounting Standards Codification (ASC) 820, Fair Value Measurement (ASC 820). ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at their fair values, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the assets or liabilities, such as inherent risk, transfer restrictions and risk of nonperformance. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An assets or a liabilitys categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value: Level 1: quoted prices in active markets for identical assets or liabilities; Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

8. INCOME TAXES Our effective tax rates for each of the periods presented are the result of the mix of income earned and losses incurred in various tax jurisdictions that apply a broad range of income tax rates. Our provision for income taxes varied from the tax computed at the U.S. federal statutory income tax rate for the periods presented primarily due to earnings in foreign operations, state taxes, the U.S. research and development tax credit, settlements with tax authorities, the tax effects of stock-based compensation, the Foreign Derived Intangible Income deduction and the tax effect of Global Intangible Low-Taxed Income. Our effective tax rates were 3.3 % and 7.2 % for the three and six months ended November 30, 2025 , respectively, and 7.1 % and 7.3 % for the three and six months ended November 30, 2024, respectively. Our net deferred tax assets were $ 9.9 billion and $ 10.2 billion as of November 30, 2025 and May 31, 2025, respectively. We believe that it is more likely than not that the net deferred tax assets will be realized in the foreseeable future. Realization of our net deferred tax assets is dependent upon our generation of sufficient taxable income in future years in appropriate tax jurisdictions to obtain benefit from the reversal of temporary differences, net operating loss carryforwards and tax credit carryforwards. The amount of net deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

11. LEGAL PROCEEDINGS Netherlands Privacy Class Action On August 14, 2020, The Privacy Collective (TPC), a foundation having its registered office in Amsterdam, filed a purported class action lawsuit against Oracle Nederland B.V, Oracle Corporation and Oracle America, Inc. (the Oracle Defendants), Salesforce.com, Inc. and SFDC Netherlands B.V. in the District Court of Amsterdam. TPC alleges that the Oracle Defendants Data Management Platform product violates certain articles of the European Union Charter of Fundamental Rights, the General Data Protection Regulation (GDPR) and the Dutch Telecommunications Act (Telecommunicatiewet). TPC claims damages under a number of categories, including: immaterial damages (at a fixed amount of 500 per Dutch internet user); material damages (in that the costs of loss of control over personal data should be equated to the market value of the personal data for parties like the Oracle Defendants); compensation for losses suffered due to an alleged data breach (at a fixed amount of 100 per Dutch internet user); and compensation for the costs of the litigation funder ( 10 % to 25 % of the compensation awarded); and the (actual) cost of the proceedings and extrajudicial costs. We filed our defense on March 3, 2021, and on December 29, 2021, the District Court issued a judgment, holding that all of TPCs claims were deemed inadmissible because of fundamental procedural flaws. TPC filed an appeal with the Court of Appeal in Amsterdam challenging the …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Income Taxes : In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which enhances the disclosures required for income taxes in our annual consolidated financial statements. ASU 2023-09 is effective for us for our annual reporting for fiscal 2026 on a prospective basis. Both early adoption and retrospective application are permitted. We are currently evaluating the impact of our pending adoption of ASU 2023-09 on our consolidated financial statements. Income Statement : In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses and also issued subsequent guidance clarifying the effective date of the initial guidance (collectively, Subtopic 220-40), which enhances the disclosures required for expense disaggregation in our annual and interim consolidated financial statements. This guidance is effective for us for our annual reporting for fiscal 2028 and for interim period reporting beginning in fiscal 2029 on a prospective basis. Both early adoption and retrospective application are permitted. We are currently evaluating the impact of our pending adoption of Subtopic 220-40 on our consolidated financial statements. Software Development Costs : In September 2025, the FASB issu …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

4. RESTRUCTURING ACTIVITIES Fiscal 2026 Oracle Restructuring Plan During the first half of fiscal 2026, our management approved, committed to and initiated plans to restructure and further improve efficiencies in our operations due to our acquisitions and certain other operational activities (2026 Restructuring Plan). The total estimated restructuring costs associated with the 2026 Restructuring Plan are up to $ 1.6 billion and will be recorded to the restructuring expense line item within our condensed consolidated statements of operations as they are incurred through the end of the plan. We recorded $ 411 million and $ 826 million of restructuring expenses in connection with the 2026 Restructuring Plan for the three and six months ended November 30, 2025, respectively. Any changes to the estimates of executing the 2026 Restructuring Plan will be reflected in our future results of operations. Summary of All Plans Accrued Six Months Ended November 30, 2025 Accrued Total Costs Total Expected (in millions) May 31, 2025 (2) Initial Costs (3) Adj. to Cost (4) Cash Payments Others (5) November 30, 2025 (2) Accrued to Date Program Costs 2026 Restructuring Plan (1) Cloud and software $ $ 265 $ 22 $ ( 141 ) $ ( 1 ) $ 145 $ 287 $ 484 Hardware 33 1 ( 15 ) 19 34 67 Services 94 4 ( 40 ) 58 98 326 Other 372 35 ( 259 ) 148 407 737 Total 2026 Restructuring Plan $ $ 764 $ 62 $ ( 455 ) $ ( 1 ) $ 370 $ 826 $ 1,614 Total other restructuring plans (6) $ 212 $ $ ( 18 ) $ ( 83 ) $ 3 $ 114 Total re …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

5. DEFERRED REVENUES Deferred revenues consisted of the following: (in millions) November 30, 2025 May 31, 2025 Cloud $ 3,281 $ 2,959 Software 5,668 5,350 Hardware 529 614 Services 462 464 Deferred revenues, current 9,940 9,387 Deferred revenues, non-current (in other non-current liabilities) 1,235 1,346 Total deferred revenues $ 11,175 $ 10,733 Deferred cloud revenues, deferred software revenues and deferred hardware revenues substantially represent customer payments made in advance for cloud or support contracts that are billed in advance with corresponding revenues generally being recognized ratably or based upon customer usage over the respective contractual periods. Deferred services revenues include prepayments for our services business and revenues for these services are generally recognized as the services are performed.

RevenueFromContractWithCustomerTextBlock

9. SEGMENT INFORMATION 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 Chief Executive Officers and Chief Technology Officer . 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. 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 companys performance and allocating company resources. We have three businessescloud and software (formerly referred to as cloud and license), hardware and serviceseach of which is comprised of a single operating segment. All three of our businesses market and sell our offerings globally to businesses of many sizes, government agencies, educational institutions and resellers wit …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

7. STOCKHOLDERS EQUITY Common Stock Repurchases Our Board of Directors (the Board) has approved a program for us to repurchase shares of our common stock. As of November 30, 2025 , approximately $ 6.3 billion remained available for stock repurchases pursuant to our stock repurchase program. We repurchased 0.4 million shares for $ 93 million during the six months ended November 30, 2025 and 2.0 million shares for $ 300 million during the six months ended November 30, 2024 under the stock repurchase program. Our stock repurchase authorization does not have an expiration date and the pace of any future repurchase activity will depend on factors such as our working capital needs, our cash requirements for capital expenditures, acquisitions and dividend payments, our debt repayment obligations or repurchases of our debt, our stock price and economic and market conditions. Our stock repurchases may be effected from time to time through open market purchases or pursuant to a Rule 10b5-1 trading plan. Our stock repurchase program may be accelerated, suspended, delayed or discontinued at any time. Dividends on Common Stock In December 2025 , the Board declared a quarterly cash dividend of $ 0.50 per share of our outstanding common stock. The dividend is payable on January 23, 2026 to stockholders of record as of the close of business on January 9, 2026 . Future declarations of dividends and the establishment of future record and payment dates are subject to the final determination of …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing