Oracle Corporation stock research
FY2026 Q3
Oracle (ORCL) Gross Margin — Quarter Ended Feb 28, 2026
Revenue and gross profit both increased compared to the preceding quarter and the year-ago quarter, while cost of revenue also rose. Gross margin weakened slightly versus the prior quarter and was lower than the year-ago period.
Gross margin takeaway
Quarter ended Feb 28, 2026 · FY2026 Q3
Revenue and gross profit both increased compared to the preceding quarter and the year-ago quarter, while cost of revenue also rose. Gross margin weakened slightly versus the prior quarter and was lower than the year-ago period.
- Gross profit in the current quarter improved relative to both the immediately preceding quarter and the same quarter one year earlier, reflecting an increase in revenue that outpaced the growth in cost of revenue on an absolute basis.
- Compared with the prior quarter, revenue and cost of revenue both increased, but the revenue increase was proportionally smaller than the cost increase, leading to a slightly weakened gross margin. Relative to the same quarter one year ago, revenue and cost of revenue both rose, but the cost increase was proportionally larger, resulting in a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.6%
Gross profit
$11.1B
Revenue
$17.2B
Cost of revenue
$6.1B
Quarter-over-quarter change
-2.0 pts
Year-over-year change
-5.8 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 |
|---|---|---|---|---|
| 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% |
| Feb 28, 2026 | $17.2B | $11.1B | $6.1B | 64.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2025
-2.0 pts
Year-over-year change
Feb 28, 2025
-5.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit in the current quarter improved relative to both the immediately preceding quarter and the same quarter one year earlier, reflecting an increase in revenue that outpaced the growth in cost of revenue on an absolute basis.
Compared with the prior quarter, revenue and cost of revenue both increased, but the revenue increase was proportionally smaller than the cost increase, leading to a slightly weakened gross margin. Relative to the same quarter one year ago, revenue and cost of revenue both rose, but the cost increase was proportionally larger, resulting in a lower gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its proportionally faster growth has pressured gross margin in the current quarter compared to both prior periods.