Oracle Corporation

Worth knowing

• Profitable, but burning cash. Reports a profit, but free cash flow is negative.

  Oracle reports a profit but its free cash flow is negative: it spent more on investment and running the business than it brought in. That's common for companies building capacity, but it means the profit isn't yet turning into cash.

• Paying shareholders without free cash flow. Paid out $16.8B over the 3 fiscal years to FY May 2026 with -$12.3B of free cash flow.

  Oracle returned $16.8B in buybacks and dividends over three fiscal years while its free cash flow totalled -$12.3B. The money came from its cash pile or from borrowing.

• Shareholders being diluted. Shares outstanding up 11% from May 2023 to September 2026.

  Oracle had 11% more shares at September 2026 than at May 2023, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Oracle had 11% more shares at September 2026 than at May 2023, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

• Stock pay outran buybacks. Stock-based pay expense $13.5B vs $1.9B spent repurchasing shares over the 3 fiscal years to FY May 2026.

  Over three fiscal years Oracle recorded $13.5B of stock-based pay expense and spent $1.9B repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Oracle recorded $13.5B of stock-based pay expense and spent $1.9B repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.