Oracle Corporation stock research
FY2026 Q4
Oracle (ORCL) Gross Margin — Quarter Ended May 31, 2026
Revenue and gross profit both increased versus the prior quarter, while cost of revenue rose at a slower pace, leading to an improved gross margin. Compared to the same quarter one year earlier, revenue was higher but gross profit was essentially flat, as cost of revenue grew substantially, causing gross margin to weaken.
Gross margin takeaway
Quarter ended May 31, 2026 · FY2026 Q4
Revenue and gross profit both increased versus the prior quarter, while cost of revenue rose at a slower pace, leading to an improved gross margin. Compared to the same quarter one year earlier, revenue was higher but gross profit was essentially flat, as cost of revenue grew substantially, causing gross margin to weaken.
- The strongest observable margin driver this quarter is the relationship between revenue and cost of revenue growth. Revenue grew more than cost of revenue versus the preceding quarter, which supported gross margin improvement.
- Gross margin improved sequentially but weakened compared to the same quarter last year. On a year-over-year basis, cost of revenue increased at a much faster rate than revenue, while gross profit remained nearly unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.2%
Gross profit
$12.5B
Revenue
$19.2B
Cost of revenue
$6.7B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
-5.0 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 |
|---|---|---|---|---|
| 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% |
| May 31, 2026 | $19.2B | $12.5B | $6.7B | 65.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 28, 2026
+0.6 pts
Year-over-year change
May 31, 2025
-5.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver this quarter is the relationship between revenue and cost of revenue growth. Revenue grew more than cost of revenue versus the preceding quarter, which supported gross margin improvement.
Gross margin improved sequentially but weakened compared to the same quarter last year. On a year-over-year basis, cost of revenue increased at a much faster rate than revenue, while gross profit remained nearly unchanged.
Monitor the trajectory of cost of revenue relative to revenue, as a sustained divergence could pressure gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Oracle Corporation (ORCL) | 65.2% |
| Microsoft Corporation (MSFT) | 67.6% |
| Salesforce, Inc. (CRM) | 76.9% |