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Oracle ORCL Services Business — Direct Expenses

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Other financials

Income statement

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Revenue$19.2B+20.6%
Gross profit$11.7B+4.7%
Operating income$6.1B+20.0%
Net income$4.3B+25.6%
EPS (diluted)$1.45+21.8%

Balance sheet

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Cash & equivalents$31.3B+190%
Total debt$160.23B+57.6%
Total equity$42.5B+108%
Total assets$261.76B+55.5%

Cash flow

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Operating cash flow$14.6B+137%
CapEx$16.5B+81.6%
Free cash flow-$1.9B+35.9%

Valuation

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Market cap$530.03B-10.0%
Enterprise value$658.97B-25.7%
P/E31×-14.9×
P/S7.9×-2.2×

Profitability

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Gross margin64.6%
Operating margin30.6%-0.4pp
Net margin25.3%+3.5pp
FCF margin-38.6%-49.0pp

Returns & leverage

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Return on equity58.7%-50.1pp
Debt / equity0.7×-5.3×
Current ratio1.3×+0.3×

Where this comes from

Reported directly by Oracle in its filing.

Tagged under the XBRL concept orcl:DirectExpenses.

The official record: Oracle’s 10-K, filed June 22, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Oracle's services business — direct expenses?
Oracle (ORCL) reported services business — direct expenses of $1.05B in Q1 2026.
How has Oracle's services business — direct expenses changed year-over-year?
Oracle's services business — direct expenses decreased by 0.7% year-over-year, from $1.06B to $1.05B.
What is the long-term trend for Oracle's services business — direct expenses?
Over 2 years (2024 to 2026), Oracle's services business — direct expenses has grown at a -3.4% compound annual growth rate (CAGR), from $4.52B to $4.21B.
What does services business — direct expenses mean?
This metric represents the total costs directly attributable to the delivery of services within the company's services business segment. It encompasses the labor, infrastructure, and operational costs required to support, maintain, and implement software solutions for enterprise customers. Tracking these expenses is essential for evaluating the profitability and operational efficiency of the services division independent of core product development costs.