How does Oracle (ORCL) make money?

Oracle (ORCL) primarily makes money through Cloud And License Business, which accounts for 86.7% of total revenue. For TTM through Q1 2026, Oracle generated $64.08B in total revenue with a net profit margin of 25.3%.

What is Oracle (ORCL) gross profit margin?

Oracle (ORCL) reported a gross profit margin of 66.4% for TTM through Q1 2026, equivalent to $42.57B in gross profit. This means Oracle retains 66.4% of each revenue unit after direct costs of production.

What is Oracle (ORCL) operating profit margin?

Oracle (ORCL) reported an operating profit margin of 30.8% for TTM through Q1 2026, equivalent to $19.75B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Oracle (ORCL) net profit margin?

Oracle (ORCL) reported a net profit margin of 25.3% for TTM through Q1 2026, equivalent to $16.21B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Oracle (ORCL) invest in R&D?

Oracle (ORCL) invested $10.31B in research and development in TTM through Q1 2026 (16.1% of total revenue). R&D spending reflects investment in future products, services, and technologies.

How much does Oracle (ORCL) spend on capital expenditures?

Oracle (ORCL) spent $48.25B on capital expenditures in TTM through Q1 2026 (75.3% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Oracle (ORCL) free cash flow?

Oracle (ORCL) generated −$24.74B in free cash flow for TTM through Q1 2026 (-38.6% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is Oracle (ORCL) effective tax rate?

Oracle (ORCL) had an effective tax rate of 11.6% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

How Oracle (ORCL) Makes Money: A Visual Guide

Oracle (ORCL) generated $64.08B in revenue, earning $16.21B in net profit (25.3% margin). Its largest revenue source is Cloud And License Business (86.7% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Oracle (ORCL) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending February 28, 2026 (reported March 11, 2026).

Frequently asked questions

How does Oracle (ORCL) make money?: Oracle (ORCL) primarily makes money through Cloud And License Business, which accounts for 86.7% of total revenue. For TTM through Q1 2026, Oracle generated $64.08B in total revenue with a net profit margin of 25.3%.
What is Oracle (ORCL) gross profit margin?: Oracle (ORCL) reported a gross profit margin of 66.4% for TTM through Q1 2026, equivalent to $42.57B in gross profit. This means Oracle retains 66.4% of each revenue unit after direct costs of production.
What is Oracle (ORCL) operating profit margin?: Oracle (ORCL) reported an operating profit margin of 30.8% for TTM through Q1 2026, equivalent to $19.75B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Oracle (ORCL) net profit margin?: Oracle (ORCL) reported a net profit margin of 25.3% for TTM through Q1 2026, equivalent to $16.21B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Oracle (ORCL) invest in R&D?: Oracle (ORCL) invested $10.31B in research and development in TTM through Q1 2026 (16.1% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Oracle (ORCL) spend on capital expenditures?: Oracle (ORCL) spent $48.25B on capital expenditures in TTM through Q1 2026 (75.3% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Oracle (ORCL) free cash flow?: Oracle (ORCL) generated −$24.74B in free cash flow for TTM through Q1 2026 (-38.6% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Oracle (ORCL) effective tax rate?: Oracle (ORCL) had an effective tax rate of 11.6% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q1 2026.