v3.26.1
SEGMENT INFORMATION (Tables)
 3 Months Ended
Aug. 31, 2026
Segment Reporting [Abstract]  
Summary of Businesses Results

The following table presents summary results for each of our three businesses:

 

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Cloud and software:

 

 

 

 

 

 

Revenues

 

$

17,157

 

 

$

12,907

 

Cloud and software expenses

 

 

6,235

 

 

 

3,418

 

Sales and marketing expenses

 

 

1,564

 

 

 

1,798

 

Margin(1)

 

$

9,358

 

 

$

7,691

 

Hardware:

 

 

 

 

 

 

Revenues

 

$

774

 

 

$

670

 

Hardware expenses

 

 

272

 

 

 

169

 

Sales and marketing expenses

 

 

50

 

 

 

54

 

Margin(1)

 

$

452

 

 

$

447

 

Services:

 

 

 

 

 

 

Revenues

 

$

1,414

 

 

$

1,349

 

Services expenses

 

 

969

 

 

 

1,017

 

Margin(1)

 

$

445

 

 

$

332

 

Totals:

 

 

 

 

 

 

Revenues

 

$

19,345

 

 

$

14,926

 

Expenses

 

 

9,090

 

 

 

6,456

 

Margin(1)

 

$

10,255

 

 

$

8,470

 

 

(1)
The margins reported reflect only the direct controllable costs of each line of business and do not include allocations of research and development, general and administrative and certain other allocable expenses, net. Additionally, the margins reported above do not reflect amortization of intangible assets, restructuring and other expenses, stock-based compensation, interest expense or certain other non-operating income, net. Refer to the table below for a reconciliation of our total margin for operating segments to our income before income taxes as reported per our condensed consolidated statements of operations.
Reconciliation of Total Margin for Operating Segment to Income before Income Taxes

The following table reconciles total margin for operating segments to income before income taxes:

 

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Total margin for operating segments

 

$

10,255

 

 

$

8,470

 

Research and development

 

 

(2,401

)

 

 

(2,491

)

General and administrative

 

 

(376

)

 

 

(376

)

Amortization of intangible assets

 

 

(202

)

 

 

(420

)

Restructuring and other

 

 

(94

)

 

 

(415

)

Stock-based compensation for operating segments

 

 

(362

)

 

 

(389

)

Expense allocations and other, net

 

 

(92

)

 

 

(102

)

Interest expense

 

 

(1,428

)

 

 

(923

)

Non-operating income, net

 

 

307

 

 

 

73

 

Income before income taxes

 

$

5,607

 

 

$

3,427

 
Disaggregation of Revenue by Geography

The following table presents a summary of our total revenues by geographic region, which are generally based on the location of our customers:

 

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Americas

 

$

13,711

 

 

$

9,662

 

EMEA(1)

 

 

3,726

 

 

 

3,481

 

Asia Pacific

 

 

1,908

 

 

 

1,783

 

Total revenues

 

$

19,345

 

 

$

14,926

 

 

(1)
Comprises Europe, the Middle East and Africa

The following table presents our cloud revenues by offerings:

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Cloud applications

 

$

4,219

 

 

$

3,839

 

Cloud infrastructure

 

 

7,388

 

 

 

3,347

 

Total cloud revenues

 

$

11,607

 

 

$

7,186

 

 

The following table presents our software revenues by offerings:

 

 

 

Three Months Ended
August 31,

 

(in millions)

 

2026

 

 

2025

 

Software license

 

$

655

 

 

$

766

 

Software support

 

 

4,895

 

 

 

4,955

 

Total software revenues

 

$

5,550

 

 

$

5,721