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ORCL · ORACLE CORP

21 filings

10-K

ORCL 10-K Annual Reports

ORACLE CORP - 21 annual reports

Filing record · 2016–202610-K1110-Q328-K98

2026
ORACLE CORP Annual Report, Year Ended May 31, 2026
Oracle Corporation's (ORCL) fiscal year 2026 filing indicates a robust financial performance driven by significant growth in its cloud and software business, which now constitutes 87% of total revenues. The company has seen a substantial increase in cloud revenues, up 19% year-over-year, with cloud infrastructure showing particularly strong growth at 77%. This expansion is supported by heavy investment in data center capacity, with capital expenditures more than doubling to $55.7 billion, reflecting a strategic pivot towards cloud-based offerings. Despite increased operating expenses, largely attributed to cloud infrastructure investments and restructuring charges, Oracle maintained its operating margin at a healthy 31%. The company's strategic focus on integrating AI technologies across its product suite positions it for continued innovation and market competitiveness. Financially, Oracle has strengthened its balance sheet through substantial debt issuances totaling $43 billion in senior notes and $5 billion in mandatory convertible preferred stock. This has been managed alongside significant cash flow from operations, which increased by 54% to $32 billion. However, free cash flow turned negative at $(23.7) billion due to the heavy capital expenditures. The company's market performance, as indicated by the stock performance graph, shows a significant increase in total stockholder return over the past five years, outperforming the S&P 500 and the Dow Jones U.S. Technology Total Return Index. Investors should note the ongoing risks related to cybersecurity, global economic conditions, and the execution of its cloud strategy, alongside the potential dilution from its ATM program and mandatory convertible preferred stock.
Jun 22, 2026
2025
ORACLE CORP Annual Report, Year Ended May 31, 2025
Oracle Corporation (ORCL) has demonstrated robust growth in its cloud services, with cloud services revenues now representing a significant 43% of total revenues for fiscal year 2025, up from 37% in fiscal 2024 and 32% in fiscal 2023. This shift highlights a successful transition towards a cloud-centric business model. The company's cloud and license segment continues to be the primary revenue driver, experiencing an 11% increase in revenues year-over-year. This growth is largely attributed to strong performance in both applications and infrastructure cloud services. While the hardware and services segments saw slight revenue declines in fiscal year 2025, this is attributed to a strategic shift in focus towards higher-growth cloud infrastructure technologies. The company's overall operating expenses increased, but this was accompanied by a corresponding rise in operating margin, indicating efficient management of its expanding cloud operations. Oracle also continues to invest heavily in research and development, with expenses up 9% year-over-year, underscoring its commitment to innovation, particularly in areas like AI. The company also maintains a strong financial position with substantial cash reserves and manageable debt levels, supported by a continued share repurchase program and dividend payments.
Jun 18, 2025
2024
ORACLE CORP Annual Report, Year Ended May 31, 2024
Oracle Corporation's 10-K filing for the fiscal year ending May 31, 2024, highlights a period of continued growth driven primarily by its cloud services and license support business. Total revenues saw an increase of 6% year-over-year, reaching $52.96 billion, with the cloud and license segment contributing 84% of this total and demonstrating an 8% revenue increase. The company continues to emphasize its strategic shift towards cloud offerings, with cloud services revenues growing by 25% to $19.77 billion. This growth reflects strong customer adoption of Oracle's SaaS and OCI services. Despite this cloud momentum, the hardware and services segments experienced revenue declines, though their overall contribution to total revenue remains smaller. Oracle also maintained a strong financial position, with significant operating cash flow and a substantial cash reserve, enabling continued investment in research and development and share repurchases.
Jun 20, 2024
2023
ORACLE CORP Annual Report, Year Ended May 31, 2023
Oracle Corporation (ORCL) reported robust growth in its fiscal year ending May 31, 2023, driven significantly by its Cloud and License business, which represents the largest portion of its revenue. The acquisition of Cerner Corporation in June 2022 played a pivotal role, contributing substantial revenue and expanding Oracle's footprint, particularly in the healthcare sector. Despite currency headwinds, the company demonstrated strong top-line growth, with a notable increase in cloud services revenue as a percentage of total revenue. Key financial highlights include the strong performance of cloud services and license support, which grew significantly, alongside continued demand for on-premise licenses. The company also saw substantial increases in its Services business, largely due to the Cerner acquisition. Oracle maintained its commitment to research and development, investing heavily to enhance its product portfolio. While the hardware segment experienced some supply chain challenges, it also showed growth. The company's strong cash flow generation and ample liquidity position it well for future investments, debt management, and shareholder returns through dividends and stock repurchases.
Jun 20, 2023
2022
ORACLE CORP Annual Report, Year Ended May 31, 2022
Oracle Corporation's 2022 10-K filing highlights a year of continued growth in its cloud and license business, which now constitutes 85% of total revenues. This segment saw a 7% increase in constant currency, driven by strong demand for both cloud services (SaaS and OCI) and license support. Despite overall revenue growth, operating income experienced a significant decline of 28% due to a substantial litigation-related charge of $4.7 billion, which significantly impacted the "Acquisition related and other" expenses. The company successfully closed the significant acquisition of Cerner Corporation in June 2022, expanding its footprint in the healthcare technology sector. This strategic move, however, also increased the company's debt burden. Oracle continues to invest heavily in research and development, dedicating $7.2 billion to innovation, particularly in its cloud infrastructure (OCI) and SaaS offerings, aiming to strengthen its competitive position in the rapidly evolving technology landscape.
Jun 21, 2022
2021
ORACLE CORP Annual Report, Year Ended May 31, 2021
Oracle Corporation's 2021 10-K filing highlights a company strategically focused on expanding its cloud offerings, which now represent a significant portion of its revenue. The company demonstrated revenue growth driven by its cloud services and license support, with a continued shift from traditional on-premise licenses to cloud-based subscriptions. Despite a decrease in hardware revenue due to a strategic de-emphasis, Oracle's overall revenue saw a modest increase, supported by its diversified business segments and global reach. The company's financial performance in fiscal year 2021 was marked by increased operating income and a strong free cash flow generation. Oracle also continued its shareholder return programs, including significant stock repurchases and dividend payments, signaling confidence in its financial stability and future prospects. The company remains committed to innovation, with substantial investments in research and development to enhance its cloud infrastructure and applications, aiming to maintain its competitive edge in the rapidly evolving IT landscape.
Jun 21, 2021
2020
ORACLE CORP Annual Report, Year Ended May 31, 2020
Oracle Corporation's (ORCL) 2020 10-K filing reveals a company navigating a transitional period, with its core cloud and license business remaining the primary revenue driver, accounting for 83% of total revenues. While overall revenues saw a slight decline year-over-year on a constant currency basis, the cloud services and license support segment showed growth, indicating a continued shift towards subscription-based cloud offerings. This shift is further supported by strategic investments in research and development, which totaled $6.1 billion in fiscal 2020. The company also demonstrated strong financial health through robust free cash flow generation and active capital allocation, including significant share repurchases and dividend payments. The filing also highlights the company's efforts to adapt to the evolving IT landscape by emphasizing flexible deployment models for its applications and infrastructure technologies. Oracle's strategic acquisitions continue to play a role in enhancing its product portfolio and expanding market reach. However, the company acknowledges the potential impacts of the COVID-19 pandemic, noting revenue impacts in the fourth quarter of fiscal 2020 and acknowledging uncertainty regarding future effects, while also emphasizing its role in providing critical technologies during the pandemic.
Jun 22, 2020
2019
ORACLE CORP Annual Report, Year Ended May 31, 2019
Oracle Corporation's (ORCL) 10-K filing for the fiscal year ending May 31, 2019, showcases a company with a dominant position in cloud and license business, which constituted 83% of its total revenues. The report highlights the company's strategic shift towards cloud-based services, with significant investment in research and development to enhance its cloud offerings and infrastructure technologies. While the hardware business saw a decline in revenues, Oracle continued to focus on its more profitable Engineered Systems. The company demonstrated a strong commitment to returning capital to shareholders through substantial stock repurchases and dividends, underscoring its financial health. The filing also addresses risks associated with the rapidly evolving IT landscape, including competition and the integration of acquired companies, while reiterating Oracle's strategy of providing customers with flexible deployment models for its comprehensive suite of applications and infrastructure technologies.
Jun 21, 2019
2018
ORACLE CORP Annual Report, Year Ended May 31, 2018
Oracle Corporation's fiscal year 2018 10-K filing indicates a period of continued growth, with total revenues reaching $39.8 billion, a 6% increase year-over-year, driven primarily by its cloud and license business which now represents 82% of total revenue. The company continues its strategic emphasis on cloud services, evident in the ongoing investments in research and development and a history of strategic acquisitions. The company's financial performance was impacted by the U.S. Tax Cuts and Jobs Act of 2017, which resulted in a significant one-time tax expense impacting net income. Oracle also continued its robust share repurchase program and dividend payments, signaling a commitment to returning capital to shareholders.
Jun 22, 2018
2017
ORACLE CORP Annual Report, Year Ended May 31, 2017
Oracle Corporation's 2017 Form 10-K highlights a year of significant strategic focus on cloud computing, marked by the substantial acquisition of NetSuite Inc. The company is transitioning its revenue mix towards Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS), which is impacting traditional software license revenues. Despite a slight decrease in overall revenue year-over-year on a reported basis, constant currency analysis indicates growth, primarily driven by the cloud segment. Oracle continues to invest heavily in research and development ($6.2 billion), underscoring its commitment to innovation in both its cloud and on-premise offerings. The company also maintained its quarterly cash dividend and continued its share repurchase program, demonstrating a commitment to returning capital to shareholders, though future repurchase activity may be moderated to fund strategic initiatives. The financial statements reveal a strong balance sheet, with increasing debt levels to support strategic growth and acquisitions.
Jun 27, 2017
2016
ORACLE CORP Annual Report, Year Ended May 31, 2016
Oracle Corporation's 2016 Form 10-K details a year of significant transformation, with a strategic shift towards cloud offerings impacting its financial performance. While total revenues saw a slight decrease year-over-year, primarily due to unfavorable currency movements and a decline in new software licenses, the company highlighted robust growth in its cloud Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) businesses on a constant currency basis. This strategic pivot is underscored by substantial investments in research and development, amounting to $5.8 billion, signaling a commitment to innovation and future growth in the cloud domain. The company's financial health remains strong, supported by substantial cash reserves and a consistent dividend payout. Oracle continued its active acquisition strategy, integrating new companies to bolster its cloud capabilities and expand its market reach. Management expressed confidence in its ability to navigate the evolving IT landscape, emphasizing the long-term potential of its integrated cloud strategy and its continued focus on enhancing customer value through its comprehensive suite of applications, platform, and infrastructure technologies.
Jun 22, 2016
2015
ORACLE CORP Annual Report, Year Ended May 31, 2015
Oracle's fiscal 2015 10-K (fiscal year ended May 31, 2015) shows total revenues essentially flat at $38.2 billion (down 0.1% as reported, up about 4% in constant currency), while currency headwinds cut revenue growth by 4 points, operating expenses rose 4% and operating income fell 6% to $13.9 billion, with operating margin declining to 36% from 39%. Net income fell 9% to $9.9 billion and diluted EPS declined to $2.21 from $2.38. The software and cloud business (77% of revenue) was the core driver, with license updates and product support growing to $18.8 billion and carrying a 90% margin, while new software licenses and cloud subscriptions fell 5% in reported terms and cloud SaaS/PaaS grew 32%. Hardware systems revenue declined 3%, and services fell 4%. Balance sheet and capital allocation changed materially. Oracle issued $20.0 billion of senior notes, pushing total borrowings to $42.0 billion from $24.1 billion. Cash, cash equivalents and marketable securities rose to $54.4 billion, but Oracle spent $6.2 billion on acquisitions (principally MICROS Systems), $8.1 billion on buybacks and $2.3 billion on dividends. Free cash flow was $12.9 billion, down 10%, and capital expenditures rose sharply to $1.4 billion. Management recorded a $186 million goodwill impairment in its hardware systems products unit and noted that the consulting unit's fair value exceeded its carrying amount by only 16%. For investors, the key tensions are slowing constant-currency license growth, margin compression from higher operating costs, a substantially higher debt load, and the transition toward cloud revenue, which is recognized ratably and therefore builds more slowly than up-front license sales. The company's quarterly dividend was set at $0.15 per share for the coming period.
Jun 25, 2015
2014
ORACLE CORP Annual Report, Year Ended May 31, 2014
Oracle Corporation's fiscal year 2014 filing (ending May 31, 2014) demonstrates continued revenue growth, primarily driven by its software and cloud segment, which represented 76% of total revenues. The company highlighted significant investments in research and development, totaling $5.2 billion, to enhance its existing product portfolio and develop new offerings, particularly in cloud computing. Oracle's strategy emphasizes acquiring companies and technologies to expand its market reach and product capabilities, with ongoing efforts to integrate acquired businesses. The hardware systems segment showed flat revenue growth, while the services segment experienced a slight decline. The company's financial position remains strong, supported by substantial cash reserves and a robust operating margin. Oracle continued its share repurchase program and dividend payments, signaling confidence in its financial health and commitment to returning value to shareholders. However, the report also notes significant ongoing amortization expenses related to past acquisitions and potential risks associated with global economic conditions, competition, and the evolving cloud computing landscape.
Jun 26, 2014
2013
ORACLE CORP Annual Report, Year Ended May 31, 2013
Oracle Corporation's 2013 10-K filing showcases a company deeply invested in its integrated software and hardware strategy, emphasizing its leadership in cloud computing technologies. The report highlights significant investments in research and development, aiming to enhance existing products and create new ones, particularly in areas like cloud services and engineered systems. Oracle's business model is diversified across software, hardware, and services, with software revenue being the largest contributor. The company's strategy includes aggressive acquisitions to expand its offerings and market reach, a key driver of its growth and competitive positioning. Financially, Oracle demonstrated resilience with stable total revenues year-over-year, driven by strong performance in its software business, particularly software license updates and product support, which also represent its highest margin segment. While the hardware business experienced revenue declines, the company continued to focus on its higher-margin engineered systems. Oracle also maintained a strong commitment to returning capital to shareholders through dividends and significant share repurchases, signaling confidence in its financial health and future prospects.
Jun 26, 2013
2012
ORACLE CORP Annual Report, Year Ended May 31, 2012
Oracle Corporation's (ORCL) 2012 Form 10-K details a strong fiscal year driven by robust software performance, with significant contributions from its expanding hardware and services segments. The company highlighted continued investment in research and development, with $4.5 billion allocated to innovation, underscoring its commitment to enhancing its comprehensive suite of enterprise software, hardware systems, and cloud computing offerings. Oracle's strategic focus on acquiring complementary technologies and companies continues to bolster its competitive position and revenue growth. The report emphasizes the company's robust financial position, characterized by substantial cash reserves and effective management of operating expenses, enabling continued shareholder returns through dividends and stock repurchases. Key financial highlights include total revenues reaching $37.1 billion and operating income of $13.7 billion, reflecting the company's strong market presence. Oracle's strategic shift towards cloud computing is evident in its product development and service offerings, positioning the company for future growth in this expanding market. Despite facing intense competition and global economic uncertainties, Oracle demonstrates resilience through its diversified business model and commitment to innovation and strategic acquisitions.
Jun 26, 2012
2011
ORACLE CORP Annual Report, Year Ended May 31, 2011
Oracle's fiscal 2011 10-K (year ended May 31, 2011) shows a company in transition after its January 2010 acquisition of Sun Microsystems. Total revenues rose 33% to $35.6 billion (30% in constant currency), and operating income grew 33% to $12.0 billion, with operating margin holding at 34%. Net income reached $8.5 billion, up 39%, and diluted EPS rose to $1.67 from $1.21. Sun drove most of the growth: the hardware systems business contributed $6.9 billion of revenue (19% of the total) versus $2.3 billion the prior year, though management notes hardware carries lower margins than software. Software remains the core profit engine, generating 68% of revenue and an 86% margin on software license updates and product support, which alone accounted for roughly 70% of total segment margin. Cash generation and balance sheet strength are notable. Operating cash flow rose 29% to $11.2 billion and free cash flow reached $10.8 billion, or 126% of net income. Cash, cash equivalents and marketable securities totaled $28.8 billion against $15.9 billion of fixed-rate-dominated borrowings, leaving Oracle in a net cash position. The company repurchased $1.2 billion of stock, paid $1.1 billion in dividends ($0.21 per share), and raised the quarterly dividend to $0.06. Restructuring charges of $487 million, mostly tied to the Sun Restructuring Plan, fell from $622 million, and roughly $250 million of Sun-related restructuring costs remain to be recognized through fiscal 2012. Key risks for investors include the unproven profitability of the hardware business, pending litigation (a $1.3 billion jury award against SAP that is subject to post-trial motions and appeal, plus a U.S. government False Claims Act complaint with no estimable loss range), ongoing IRS transfer-pricing scrutiny, and dependence on sole-source suppliers such as Fujitsu. Management also flags that acquisition-driven amortization of intangibles ($2.4 billion) weighs on reported GAAP earnings.
Jun 28, 2011
2010
ORACLE CORP Annual Report, Year Ended May 31, 2010
Oracle's fiscal 2010 10-K (year ended May 31, 2010) reflects a transformational year defined by the January 2010 acquisition of Sun Microsystems for about $7.3 billion. Total revenues rose 15% to $26.8 billion (14% in constant currency), with Sun contributing an estimated $2.8 billion. Net income grew 10% to $6.1 billion and diluted EPS rose to $1.21 from $1.09. Software remained the core engine at 77% of revenue, with license updates and product support (49% of revenue, 85% margin) providing a highly recurring base. Free cash flow reached $8.45 billion, or 138% of net income. The headline growth masks meaningful margin pressure. Operating margin fell to 34% from 36%, driven by the lower-margin hardware business, $1.97 billion of intangible amortization, and restructuring charges that jumped to $622 million. Management estimates Sun reduced operating income by about $620 million on a reported basis, or contributed roughly $371 million on an adjusted basis that excludes acquisition-related charges. The hardware systems segment generated $2.29 billion in revenue at a thin margin, and Oracle expects it to carry lower margins than software going forward. Services revenue fell 11% as IT spending weakened. Balance sheet and capital allocation changed as well. Total assets grew to $61.6 billion, goodwill rose to $20.4 billion, and total borrowings reached about $14.7 billion after a $4.5 billion bond issuance. Cash and marketable securities rose to $18.5 billion. Oracle initiated its first-ever quarterly dividend in fiscal 2009, paid $0.20 per share in fiscal 2010, and continued repurchases with about $5.3 billion authorized remaining. Investors should weigh the strong cash generation and recurring support revenue against the execution risk of integrating Sun, the lower-margin hardware mix, and ongoing restructuring costs, with a further $755 million of Sun restructuring expense still expected.
Jul 1, 2010
2009
ORACLE CORP Annual Report, Year Ended May 31, 2009
Oracle's fiscal 2009 10-K (year ended May 31, 2009) shows a company that grew total revenue 4% in reported dollars (10% in constant currency) to $23.25 billion, with operating income up 6% to $8.32 billion and net income up 1% to $5.59 billion. Diluted EPS was $1.09 versus $1.06. Software revenue, which is roughly 81% of the total, grew 6% reported and 12% constant currency. Software license updates and product support, the highest-margin line at 84%, grew 14% reported and drove most of the recurring revenue base. New software license revenue fell 5% reported to $7.12 billion, and applications license revenue dropped 16%, while database and middleware held flat. Services revenue declined 5%, with consulting down 7% and education down 16%. The reported figures were hurt by a roughly 6-point currency drag from the strong U.S. dollar. Balance sheet and cash flow remain strong. Cash, cash equivalents and marketable securities totaled $12.6 billion, operating cash flow rose 12% to $8.26 billion, and free cash flow reached $7.73 billion. Total borrowings were $10.2 billion against $25.1 billion of stockholders' equity. Oracle repurchased $4.0 billion of stock and declared its first-ever quarterly dividend of $0.05 per share. Acquisition-related amortization of intangibles rose 41% to $1.71 billion, which weighs on reported margins. Operating margin was 36%, up from 35%. The dominant forward-looking item is the pending $7.4 billion cash acquisition of Sun Microsystems at $9.50 per share, announced April 19, 2009 and subject to Sun stockholder approval and regulatory clearance. Management also warned of continued macroeconomic pressure on license demand, and the company disclosed material ongoing litigation, including the SAP IP case and the Parallel Networks patent matter.
Jun 29, 2009
2008
ORACLE CORP Annual Report, Year Ended May 31, 2008
Oracle's fiscal 2008 10-K (year ended May 31, 2008) shows a company in the midst of a transformative consolidation. Total revenues rose 25% to $22.4 billion (19% in constant currency), with software revenues of $17.8 billion (80% of total) and services of $4.6 billion. Operating income grew 31% to $7.8 billion, lifting operating margin to 35%, and net income reached $5.5 billion, or $1.06 diluted EPS, up from $0.81. Growth was driven by organic demand, acquisitions (notably Hyperion in fiscal 2007 and BEA Systems, closed April 29, 2008, for about $8.6 billion), and a roughly 6-point tailwind from a weaker U.S. dollar. The balance sheet expanded sharply. Total assets rose to $47.3 billion, goodwill to $18.0 billion, and total borrowings to $11.2 billion after $5.0 billion of senior notes were issued in April 2008 to fund BEA. Cash, cash equivalents and marketable securities were $11.0 billion, and free cash flow was $7.2 billion, or 130% of net income. Investors should weigh the heavier debt load and the large amortization burden: intangible amortization reached $1.2 billion and is forecast at $1.66 billion in fiscal 2009, which pressures GAAP earnings even as software support revenue (46% of total) provides a recurring, high-margin base. Key risks flagged in the filing include integration of BEA and prior acquisitions, a $1.9 billion aggregate potential exposure under the PeopleSoft Customer Assurance Program, $1.7 billion of unrecognized tax benefits with ongoing IRS transfer-pricing review, the pending SAP and EpicRealm litigation, and the securities class action that remains unresolved. Management reports effective internal control over financial reporting, audited by Ernst & Young, with an unqualified opinion.
Jul 2, 2008
2007
ORACLE CORP Annual Report, Year Ended May 31, 2007
Oracle's fiscal 2007 10-K (year ended May 31, 2007) shows a company growing revenue 25% to $17.996 billion (22% in constant currency) and net income 26% to $4.274 billion, with diluted EPS of $0.81. Growth was driven by acquisitions, most notably PeopleSoft (fiscal 2005), Siebel (fiscal 2006) and Hyperion (April 2007), with over $25 billion invested in acquisitions across the last three fiscal years. Software revenue rose 23% to $14.2 billion, while services rose 33% to $3.8 billion, though services margins are much thinner (about 12% for consulting and negative for On Demand). Software license updates and product support, the highest-margin line at 84% total margin, grew 25% to $8.3 billion and provides a recurring base. Cash generation remained strong, with operating cash flow of $5.5 billion and free cash flow of $5.2 billion (122% of net income). Management spent $4.0 billion on share repurchases and $4.97 billion on investing activities, mainly acquisitions. Total debt rose to $7.6 billion and cash and marketable securities fell to $7.0 billion. Working capital dropped to $3.5 billion from $5.0 billion, and goodwill rose to $13.5 billion, so acquisition integration and impairment risk are meaningful for investors. Key risks flagged in the filing include the PeopleSoft Customer Assurance Program, a contingent liability with an aggregate potential obligation of $3.2 billion that has not been recorded, pending litigation including securities class actions and the SAP IP suit, and ongoing reliance on acquisitions for growth. The filing also notes that Oracle's new software license revenues grew only 20% and that intangible amortization rose to $878 million, which pressures margins.
Jun 29, 2007
2006
ORACLE CORP Annual Report, Year Ended May 31, 2006
Oracle's fiscal 2006 10-K (year ended May 31, 2006) shows a company in the middle of a large acquisition-driven expansion. Total revenues rose 22% (actual) to $14.38 billion, with software revenues up 23% to $11.54 billion and services up 19% to $2.84 billion. Operating income grew 18% to $4.74 billion, though operating margin slipped to 33% from 34% as acquisition-related amortization of intangibles climbed to $583 million from $219 million. Net income reached $3.38 billion, up 17%, and diluted EPS was $0.64 versus $0.55. Growth was helped by the PeopleSoft (closed January 2005) and Siebel (closed January 2006) acquisitions, which together with other deals totaled about $19.5 billion of spending over two years. Cash generation remained strong. Operating cash flow rose 28% to $4.54 billion and free cash flow reached $4.31 billion, or 127% of net income. Oracle took on $5.75 billion of senior notes in January 2006 to fund Siebel, pushing total borrowings to about $5.9 billion, while cash, equivalents and marketable securities stood at $7.6 billion. The company repurchased $2.07 billion of stock during the year, including about $1.7 billion tied to offsetting Siebel share issuance, and the board later expanded the buyback authorization to $4.0 billion in July 2006. Investors should weigh several risks. The PeopleSoft Customer Assurance Program carries a contingent liability with an aggregate potential exposure of $3.5 billion, though management does not consider payment probable and has recorded no liability. Integration of Siebel and PeopleSoft is described as substantially complete, with remaining activities expected within three months. Revenue growth in the applications business, the sensitivity of quarterly new license revenue to a few large deals, and stock-based compensation expensing beginning in fiscal 2007 (estimated at $0.02 to $0.03 per diluted share) are also important considerations.
Jul 21, 2006