EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

May 31, 2026

Employee Benefit and Share-Based Payment Arrangement, Noncash Expense [Abstract]

Summary of Restricted Stock Based Award Activity

The following table summarizes restricted stock-based award activity granted pursuant to Oracle-based stock plans for our last three fiscal years ended May 31, 2026:


	Restricted Stock-Based Awards Outstanding
(in millions, except fair value)	Number of Shares			Weighted-Average Grant Date Fair Value
Balance, May 31, 2023		152		$	69.09
Granted		47		$	110.26
Vested and issued		(53	)	$	66.97
Canceled		(8	)	$	77.52
Balance, May 31, 2024		138		$	83.43
Granted		38		$	159.11
Vested and issued		(52	)	$	78.30
Canceled		(7	)	$	99.44
Balance, May 31, 2025		117		$	108.91
Granted		23		$	243.23
Vested and issued		(47	)	$	98.06
Canceled		(12	)	$	132.82
Balance, May 31, 2026		81		$	149.88

Summary of Stock Option Activity

The following table summarizes stock option activity, including SOs and PSOs, and includes awards granted pursuant to the 2020 Plan and stock plans assumed from our acquisitions for our last three fiscal years ended May 31, 2026:


	Options Outstanding
(in millions, except exercise price)	Shares Under Stock Option			Weighted-Average Exercise Price
Balance, May 31, 2023		64		$	45.42
Granted and assumed		2		$	113.91
Exercised		(15	)	$	34.84
Balance, May 31, 2024		51		$	51.05
Granted		—		$	—
Exercised		(10	)	$	44.84
Balance, May 31, 2025		41		$	52.58
Granted		15		$	279.53
Exercised		(25	)	$	50.04
Canceled		(10	)	$	60.51
Balance, May 31, 2026		21		$	217.63

Stock options outstanding that have vested and that are expected to vest as of May 31, 2026 were as follows:


	Outstanding Stock Options (in millions)		Weighted-Average Exercise Price		Weighted-Average Remaining Contract Term (in years)		Aggregate Intrinsic Value(1) (in millions)
Vested		5	$	49.37		1.64	$	789
Expected to vest(2)		15	$	275.90		9.35		95
Total		20	$	223.97		7.58	$	884

(1)

The aggregate intrinsic value was calculated based on the gross difference between our closing stock price on the last trading day of fiscal 2026 of $225.78 and the exercise prices for all “in-the-money” options outstanding, excluding tax effects.

(2)

The unrecognized compensation expense calculated under the fair value method for shares expected to vest as of May 31, 2026 was $1.8 billion and is expected to be recognized over a weighted-average period of 3.30 years. Approximately 1 million shares outstanding as of May 31, 2026 were not expected to vest.

Weighted-average Input Assumptions Used and Resulting Fair Values of Stock Options

The weighted-average input assumptions used and resulting fair values of our SOs and PSOs were as follows for fiscal 2026:


Expected life (in years)		6.7
Risk-free interest rate	3.8%
Volatility	51%
Dividend yield	0.7%
Weighted-average fair value per share	$	142.64

Stock-Based Compensation Expense

Stock-based compensation expense was included in the following operating expense line items in our consolidated statements of operations:


	Year Ended May 31,
(in millions)	2026			2025			2024
Cloud and software	$	622		$	609		$	525
Hardware		27			29			23
Services		210			202			167
Sales and marketing		759			757			667
Research and development		2,805			2,638			2,225
General and administrative		388			439			367
Total stock-based compensation	$	4,811		$	4,674		$	3,974
Estimated income tax benefit included in provision for income taxes		(1,100	)		(1,050	)		(913	)
Total stock-based compensation, net of estimated income tax benefit	$	3,711		$	3,624		$	3,061