ORCL · 10-K · 2026A · Full report

Research and Development Expenses

ORACLE CORP · 2026-06-22 · Importance 42 · Surprise 14

Research and development expenses increased $412 million (3% reported and constant currency) to $7,467 million in fiscal 2026 from $7,222 million in fiscal 2025. The constant currency increase was primarily driven by a $234 million increase in employee-related expenses (including stock-based compensation) and a $132 million increase in computer equipment expenses. R&D represented 15% of total revenues in fiscal 2026 (down from 17% in fiscal 2025 when excluding stock-based compensation). The company states it intends to continue significant R&D investment to maintain competitive position.

Key facts

• Stock-based compensation included in research and development was $2,805 million for fiscal 2026. source
• Total research and development expense excluding stock-based compensation was $7,467 million for fiscal 2026. source
• Total research and development expenses (including stock-based compensation) were $10,272 million for fiscal 2026. source
• Research and development expenses increased by $412 million in fiscal 2026 relative to fiscal 2025. source
• Oracle's cumulative potential dilution from stock-based awards since June 1, 2023 has been an annualized rate of 1.0% per year. source
• As of May 31, 2026, the maximum potential dilution from all outstanding stock-based awards was 3.5%. source