Oracle Corporation stock research
FY2026 Q2
Oracle (ORCL) Gross Margin — Quarter Ended Nov 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened relative to both periods, as cost of revenue grew faster than revenue.
Gross margin takeaway
Quarter ended Nov 30, 2025 · FY2026 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened relative to both periods, as cost of revenue grew faster than revenue.
- The strongest observable margin driver is the increase in cost of revenue, which outpaced revenue growth, leading to a lower gross margin.
- Compared to the immediately 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
66.5%
Gross profit
$10.7B
Revenue
$16.1B
Cost of revenue
$5.4B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-4.4 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 |
|---|---|---|---|---|
| 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% |
| Nov 30, 2025 | $16.1B | $10.7B | $5.4B | 66.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 31, 2025
-0.7 pts
Year-over-year change
Nov 30, 2024
-4.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in cost of revenue, which outpaced revenue growth, leading to a lower gross margin.
Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was also lower.
Monitor the trend in cost of revenue relative to revenue in upcoming quarters.