ORCL · 10-K · 2026A · Full report

Total Operating Expense Trends

ORACLE CORP · 2026-06-22 · Importance 44 · Surprise 24 · Matches filing data

Total GAAP operating expenses increased by $7.0 billion in fiscal 2026 versus fiscal 2025, driven primarily by a $6.0 billion increase in cloud and software expenses (mainly infrastructure), a $1.5 billion increase in restructuring and other expenses, a $412 million increase in R&D expenses, and increases in hardware and general and administrative expenses. These expense increases were partially offset by a $636 million decrease in amortization of intangible assets, a $320 million decrease in sales and marketing expenses, and a $20 million decrease in services expenses. Management attributes cloud-related infrastructure spending as the primary short-term fixed-cost driver and expects those expense trends to continue as it expands capacity and footprint.

Key facts

• Cloud and software expenses increased by $6.0 billion in fiscal 2026 relative to fiscal 2025 primarily due to higher infrastructure expenses. source
• Cloud and software total expenses were $24,062 million for fiscal 2026 (excludes stock-based comp and certain allocations). source
• Total GAAP operating expenses increased by $7.0 billion in fiscal 2026 relative to fiscal 2025. source
• Total operating expenses were $46,751 million for the year ended May 31, 2026. source
• Total stock-based compensation was $5,250 million for fiscal 2026 (sum shown in supplemental table). source
• Stock-based compensation included in operating segments was $1,618 million for fiscal 2026. source
• General and administrative expenses excluding stock-based compensation were $1,230 million for fiscal 2026. source

Impact estimates