v3.26.1
LEASES AND OTHER COMMITMENTS
3 Months Ended
Aug. 31, 2026
Leases [Abstract]  
LEASES AND OTHER COMMITMENTS
6.
LEASES AND OTHER COMMITMENTS

Leases

We have operating and finance leases that primarily relate to our data centers and real estate facilities.

The components of lease expense were as follows:

 

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Operating lease expense

 

$

1,101

 

 

$

575

 

Finance lease expense:

 

 

 

 

 

 

Amortization of ROU assets

 

$

149

 

 

$

59

 

Interest on lease liabilities

 

 

126

 

 

 

48

 

Total finance lease expense

 

$

275

 

 

$

107

 

Supplemental balance sheet information related to leases was as follows:

 

(in millions)

 

August 31,
2026

 

 

May 31,
2026

 

Operating leases:

 

 

 

 

 

 

Operating lease ROU assets

 

$

33,967

 

 

$

29,690

 

Operating lease liabilities:

 

 

 

 

 

 

Operating lease liabilities, current

 

$

4,027

 

 

$

3,542

 

Operating lease liabilities, non-current

 

 

30,594

 

 

 

26,648

 

Total operating lease liabilities

 

$

34,621

 

 

$

30,190

 

Finance leases:

 

 

 

 

 

 

Finance lease ROU assets

 

$

8,856

 

 

$

7,464

 

Finance lease liabilities:

 

 

 

 

 

 

Finance lease liabilities, current

 

$

749

 

 

$

620

 

Finance lease liabilities, non-current

 

 

8,436

 

 

 

7,081

 

Total finance lease liabilities

 

$

9,185

 

 

$

7,701

 

Supplemental cash flow information related to leases was as follows:

 

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Operating leases

 

$

950

 

 

$

567

 

Finance leases

 

$

186

 

 

$

86

 

ROU assets obtained in exchange for lease obligations:

 

 

 

 

 

 

Operating leases

 

$

4,903

 

 

$

3,181

 

Finance leases

 

$

1,539

 

 

$

1,122

 

 

Maturities of lease liabilities were as follows as of August 31, 2026 (in millions):

 

 

Operating
Leases

 

 

Finance
Leases

 

Remainder of fiscal 2027

 

$

3,219

 

 

$

620

 

Fiscal 2028

 

 

4,135

 

 

 

852

 

Fiscal 2029

 

 

4,097

 

 

 

923

 

Fiscal 2030

 

 

4,109

 

 

 

947

 

Fiscal 2031

 

 

4,089

 

 

 

971

 

Fiscal 2032

 

 

4,030

 

 

 

996

 

Thereafter

 

 

24,371

 

 

 

9,886

 

Total lease payments

 

 

48,050

 

 

 

15,195

 

Less: imputed interest

 

 

(13,429

)

 

 

(6,010

)

Total lease liability

 

$

34,621

 

 

$

9,185

 

As of August 31, 2026, we had $288 billion of additional lease commitments, substantially all related to data center arrangements, that are generally expected to commence between the second quarter of fiscal 2027 and fiscal 2029 and for terms of fifteen to nineteen years that were not reflected on our condensed consolidated balance sheets as of August 31, 2026 or in the maturities table above.

Unconditional Obligations

In the ordinary course of business, we enter into certain unconditional purchase obligations with our suppliers. These are agreements that are enforceable and legally binding and specify terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the payment. As of August 31, 2026, our unconditional purchase and certain other obligations with terms of one year or greater, which were primarily related to long-term supply arrangements for purchasing components for cloud infrastructure assets and power supply arrangements for data centers, were as follows (in millions):

Remainder of fiscal 2027

 

$

5,449

 

Fiscal 2028

 

 

6,176

 

Fiscal 2029

 

 

3,863

 

Fiscal 2030

 

 

4,318

 

Fiscal 2031

 

 

6,768

 

Fiscal 2032

 

 

954

 

Thereafter

 

 

6,622

 

Total

 

$

34,150