Oracle Corporation stock research
FY2026 Q1
Oracle (ORCL) Gross Margin — Quarter Ended Aug 31, 2025
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit followed a similar pattern, while cost of revenue rose both sequentially and year-over-year, causing gross margin to decline compared to both periods.
Gross margin takeaway
Quarter ended Aug 31, 2025 · FY2026 Q1
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit followed a similar pattern, while cost of revenue rose both sequentially and year-over-year, causing gross margin to decline compared to both periods.
- The relationship between cost of revenue and revenue shifted, with cost of revenue growing faster than revenue on a sequential basis and from the prior year.
- Compared to the preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.3%
Gross profit
$10.0B
Revenue
$14.9B
Cost of revenue
$4.9B
Quarter-over-quarter change
-2.9 pts
Year-over-year change
-3.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Nov 30, 2024 | $14.1B | $10.0B | $4.1B | 70.9% |
| Feb 28, 2025 | $14.1B | $9.9B | $4.2B | 70.3% |
| May 31, 2025 | $15.9B | $11.2B | $4.7B | 70.2% |
| Aug 31, 2025 | $14.9B | $10.0B | $4.9B | 67.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 31, 2025
-2.9 pts
Year-over-year change
Aug 31, 2024
-3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between cost of revenue and revenue shifted, with cost of revenue growing faster than revenue on a sequential basis and from the prior year.
Compared to the preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower.
Monitor the trajectory of capital expenditures as discussed in the filing's liquidity section, as they may influence future cost structures.