How does Oracle (ORCL) make money?

Oracle (ORCL) generates revenue primarily from Cloud And License Business, which accounted for 87% of total revenue in TTM through Q2 2026. The company reported $67.36B in revenue and converted 25.4% of it into net profit, equivalent to roughly $17.09B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Oracle (ORCL)?

Oracle (ORCL) reported a gross profit margin of 65.8% in TTM through Q2 2026, equivalent to $44.33B in gross profit on $67.36B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Oracle (ORCL)?

Oracle (ORCL) reported an operating profit margin of 30.8% in TTM through Q2 2026, equivalent to $20.78B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Oracle (ORCL)?

Oracle (ORCL) reported a net profit margin of 25.4% in TTM through Q2 2026, equivalent to $17.09B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Oracle (ORCL) profitable?

Yes. Oracle (ORCL) reported $17.09B in net income for TTM through Q2 2026, with a net profit margin of 25.4%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Oracle (ORCL) invest in research and development?

Oracle (ORCL) invested $10.27B in research and development during TTM through Q2 2026, roughly 15.2% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

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

Oracle (ORCL) spent $55.66B on capital expenditures (CapEx) during TTM through Q2 2026, roughly 82.6% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Oracle (ORCL) generate?

Oracle (ORCL) generated −$23.69B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of -35.2%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Oracle (ORCL)?

Oracle (ORCL) had an effective tax rate of 12.6% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Oracle (ORCL)?

Oracle (ORCL) reports revenue across 3 reportable product segments, led by Cloud And License Business at 87% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Oracle Makes Money: 2026 Visual Revenue Map

Oracle (ORCL) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending May 31, 2026 (reported June 10, 2026).

Oracle discloses geographic revenue only in annual filings. to view the full breakdown.

Oracle (ORCL) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Oracle (ORCL) in TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Cloud And License Business	$58.60B	87%
Services Business	$5.86B	8.7%
Hardware Business	$2.90B	4.3%
Total	$67.36B	100%

Cloud And License Business$58.60B
Services Business$5.86B
Hardware Business$2.90B
Total$67.36B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Oracle (ORCL) reports revenue across 3 operating segments; the largest segment was Cloud And License Business at 87%, followed by Services Business (8.7%) and Hardware Business (4.3%).

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