Oracle Corporation (ORCL)
Pretax margin
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 14,158,000 | 13,845,000 | 13,262,000 | 12,592,000 | 11,798,000 | 11,069,000 | 10,422,000 | 9,846,000 | 9,127,000 | 9,642,000 | 10,264,000 | 6,624,000 | 7,649,000 | 8,181,000 | 8,617,000 | 13,085,000 | 12,999,000 | 12,539,000 | 12,339,000 | 12,177,000 |
| Revenue (ttm) | US$ in thousands | 57,399,000 | 55,783,000 | 54,933,000 | 53,815,000 | 52,961,000 | 52,510,000 | 51,628,000 | 50,962,000 | 49,954,000 | 47,958,000 | 46,073,000 | 44,158,000 | 42,441,000 | 41,828,000 | 41,400,000 | 40,840,000 | 40,479,000 | 39,691,000 | 39,402,000 | 39,216,000 |
| Pretax margin | 24.67% | 24.82% | 24.14% | 23.40% | 22.28% | 21.08% | 20.19% | 19.32% | 18.27% | 20.11% | 22.28% | 15.00% | 18.02% | 19.56% | 20.81% | 32.04% | 32.11% | 31.59% | 31.32% | 31.05% |
May 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $14,158,000K ÷ $57,399,000K
= 24.67%
The pretax margin of Oracle Corporation demonstrates notable fluctuations over the observed period from August 2020 through May 2025. Initially, the pretax margin remained relatively stable and robust, consistently exceeding 31% during the fiscal periods ending in August 2020 through May 2021, with values ranging from 31.05% to 32.11%. This sustained level indicates that the company maintained a healthy profitability before taxes during this period.
Subsequently, a significant decline emerged in late 2021, with the pretax margin dropping sharply from approximately 32% to around 20.81% by November 2021, and further decreasing through early 2022 to a low of approximately 15.00% in August 2022. This downward trend suggests increased costs, competitive pressures, or a shift in revenue mix affecting profitability margins during these periods.
From late 2022 onward, the pretax margin exhibits signs of recovery and gradual improvement, rising from a low of 15.00% in August 2022 to approximately 24.14% by November 2024. The margins show a generally upward trajectory, reaching around 24.82% in February 2025. This positive trend indicates that Oracle has managed to improve its pre-tax profitability, perhaps through operational efficiencies, cost management, or revenue growth.
Overall, the pretax margin analysis reflects periods of strong profitability stability followed by a substantial decline, as well as subsequent recovery. The recent trajectory suggests that Oracle is regaining profitability strength, with the pretax margin moving toward pre-2022 levels.
Peer comparison
May 31, 2025