Oracle Corporation (ORCL)

Gross profit margin

		May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Gross profit	US$ in thousands	55,092,000	37,818,000	36,390,000	33,563,000	32,624,000
Revenue	US$ in thousands	57,399,000	52,961,000	49,954,000	42,440,000	40,479,000
Gross profit margin		95.98%	71.41%	72.85%	79.08%	80.59%

May 31, 2025 calculation

Gross profit margin = Gross profit ÷ Revenue
= $55,092,000K ÷ $57,399,000K
= 95.98%

The gross profit margin of Oracle Corporation has demonstrated notable fluctuations over the analyzed period from May 31, 2021, to May 31, 2025. As of May 31, 2021, the gross profit margin stood at 80.59%, indicating a high level of efficiency in generating gross profit relative to revenue. This margin experienced a gradual decline to 79.08% by May 31, 2022, suggesting slight erosion in gross profitability or increased cost of goods sold relative to revenue during this period.

The decline continued more markedly by May 31, 2023, reaching 72.85%. This sharper decrease could be indicative of increasing costs, a change in sales mix, or pricing pressures impacting gross profit. The downward trend persisted into May 31, 2024, with the gross profit margin decreasing further to 71.41%, emphasizing ongoing challenges in maintaining previously high gross profitability levels.

However, an unexpected and significant change is observed in the data for May 31, 2025, where the gross profit margin dramatically increases to 95.98%. This substantial rise suggests a remarkable improvement in gross profitability, potentially due to one-time gains, adjustments in revenue recognition, reductions in cost of goods sold, or other extraordinary factors that temporarily inflated the gross profit margin.

Overall, the trend reflects initial stability followed by a period of decline and then a pronounced surge in gross profit margin at the end of the analyzed timeframe. This pattern warrants further investigation into the underlying causes for the decrease in gross profit margins during 2022-2024 and the subsequent spike in 2025 to fully understand the factors influencing Oracle's gross profitability over these periods.