ORCL · 10-K · 2026A · Full report
Free cash flow / cash conversion
ORACLE CORP · 2026-06-22 · Importance 82 · Surprise 82 · Matches filing data
Oracle calculates non‑GAAP free cash flow as net cash provided by operating activities less capital expenditures and reported free cash flow of $(23,686) million for the year ended May 31, 2026. The company’s free cash flow decreased materially year-over-year primarily due to a $34.4 billion increase in capital expenditures to support data center expansion. Oracle discloses net cash provided by operating activities of $31,977 million and capital expenditures of $55,663 million in fiscal 2026, resulting in free cash flow that is negative and materially below prior-year levels. The company states the free cash flow metric is used to compare performance with competitors but is not a substitute for GAAP measures.
Key facts
- Free cash flow for the year ended May 31, 2026 was $(23,686) million, compared to $(394) million in the prior year. source
- Free cash flow as percent of net income was -139% in fiscal 2026 and -3% in fiscal 2025. source
- Free cash flow is calculated as Net cash provided by operating activities of $31,977 million less Capital expenditures of $55,663 million for the year ended May 31, 2026. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -8.9% | Free cash flow for the year ended May 31, 2026 was $(23,686) million, compared to $(394) million in the prior year. |