ORCL · 10-K · 2026A · Full report

Interest Expense and Indebtedness

ORACLE CORP · 2026-06-22 · Importance 86 · Surprise 84 · In source text

Interest expense increased to $4,599 million in fiscal 2026, a 29% increase versus fiscal 2025, primarily due to higher average borrowings driven by the issuance of $43.0 billion of senior notes in fiscal 2026 and an aggregate $14.0 billion of senior notes in fiscal 2025. The balance sheet impact included proceeds from senior notes of $42.7 billion (net of issuance costs) during fiscal 2026 and long-term borrowings of $5.7 billion that were reclassified to current liabilities. Higher debt issuance materially increased fiscal 2026 interest expense compared with fiscal 2025.

Key facts

• Interest expense increased in fiscal 2026 primarily due to higher average borrowings from the issuances of $43.0 billion of senior notes in fiscal 2026 and an aggregate of $14.0 billion of senior notes in fiscal 2025. source
• Long-term borrowings of $5.7 billion were reclassified to current liabilities during fiscal 2026. source
• Net cash provided by financing activities increased by $39.2 billion in fiscal 2026 relative to fiscal 2025 primarily due to lower scheduled repayments of debt of $5.2 billion. source
• Cash used for scheduled repayments of debt during fiscal 2026 was $5.0 billion. source
• Interest expense was $4,599 million for the year ended May 31, 2026. source
• In March 2026, Oracle's commercial paper program was increased to $10.0 billion. source
• There were $1.5 billion of outstanding Commercial Paper Notes as of May 31, 2026. source
• Cash used for repayment of commercial paper, net during fiscal 2026 was $851 million. source

Impact estimates