Restructuring and other expenses line item on our consolidated statement of operations consist of restructuring expenses for employee severance costs, contract termination costs and certain other exit costs to improve our cost structure prospectively. The restructuring expenses resulted from the execution of management-approved restructuring plans that were developed for certain strategic initiatives and/or to improve operational efficiencies, as further described below; and other operating expenses, net.

During fiscal 2026, our management approved, committed to, initiated and further supplemented plans to restructure to implement certain strategic measures and further improve operational efficiencies, including through the adoption and integration of AI technologies across certain functions and other operational activities (2026 Restructuring Plan). The total estimated restructuring costs associated with the 2026 Restructuring Plan are up to $2.1 billion and will be recorded to the restructuring and other expense line item within our consolidated statements of operations through the end of the plan. We recorded $1.8 billion of restructuring expenses in connection with the 2026 Restructuring Plan in fiscal 2026. Any changes to the estimates of executing the 2026 Restructuring Plan will be reflected in our future results of operations.

During fiscal 2024, our management approved, committed to and initiated plans to restructure and further improve efficiencies in our operations due to our acquisitions and certain other operational activities (2024 Restructuring Plan). In fiscal 2025, our management supplemented the 2024 Restructuring Plan to reflect additional actions that we expected to take. Restructuring costs associated with the 2024 Restructuring Plan were recorded to the restructuring and other expense line item within our consolidated statements of operations. We recorded $314 million and $432 million of restructuring expenses in connection with the 2024 Restructuring Plan in fiscal 2025 and 2024, respectively. Actions pursuant to the 2024 Restructuring Plan were substantially complete as of May 31, 2025.

Fiscal 2026 Activity


	Accrued		Year Ended May 31, 2026											Accrued		Total Costs		Total Expected
(in millions)	May 31, 2025(2)		Initial Costs(3)		Adj. to Cost(4)			Cash Payments			Others(5)			May 31, 2026(2)		Accrued to Date		Program Costs
Fiscal 2026 Oracle Restructuring Plan(1)
Cloud and software	$	—	$	601	$	58		$	(439	)	$	(1	)	$	219	$	659	$	786
Hardware		—		75		3			(49	)		—			29		78		83
Services		—		290		17			(157	)		(1	)		149		307		399
Other		—		674		86			(591	)		1			170		760		835
Total Fiscal 2026 Oracle Restructuring Plan	$	—	$	1,640	$	164		$	(1,236	)	$	(1	)	$	567	$	1,804	$	2,103
Total other restructuring plans(6)	$	212	$	—	$	(25	)	$	(105	)	$	4		$	86
Total restructuring plans	$	212	$	1,640	$	139		$	(1,341	)	$	3		$	653

Fiscal 2025 Activity


	Accrued		Year Ended May 31, 2025										Accrued
(in millions)	May 31, 2024		Initial Costs(3)		Adj. to Cost(4)			Cash Payments			Others(5)		May 31, 2025(2)
Fiscal 2024 Oracle Restructuring Plan(1)
Cloud and software	$	87	$	115	$	(6	)	$	(118	)	$	1	$	79
Hardware		4		17		—			(11	)		—		10
Services		12		37		—			(28	)		1		22
Other		49		153		(2	)		(142	)		2		60
Total Fiscal 2024 Oracle Restructuring Plan	$	152	$	322	$	(8	)	$	(299	)	$	4	$	171
Total other restructuring plans(6)	$	84	$	—	$	(15	)	$	(29	)	$	1	$	41
Total restructuring plans	$	236	$	322	$	(23	)	$	(328	)	$	5	$	212

Fiscal 2024 Activity


	Accrued		Year Ended May 31, 2024										Accrued
(in millions)	May 31, 2023		Initial Costs(3)		Adj. to Cost(4)			Cash Payments			Others(5)		May 31, 2024
Fiscal 2024 Oracle Restructuring Plan(1)
Cloud and software	$	—	$	204	$	(9	)	$	(108	)	$	—	$	87
Hardware		—		9		—			(5	)		—		4
Services		—		46		(1	)		(33	)		—		12
Other		—		188		(5	)		(134	)		—		49
Total Fiscal 2024 Oracle Restructuring Plan	$	—	$	447	$	(15	)	$	(280	)	$	—	$	152
Total other restructuring plans(6)	$	199	$	—	$	(28	)	$	(89	)	$	2	$	84
Total restructuring plans	$	199	$	447	$	(43	)	$	(369	)	$	2	$	236

(1)

Restructuring costs recorded to each of the operating segments presented primarily related to employee severance costs. Other restructuring costs represented employee severance costs not related to our operating segments and certain other restructuring plan costs.