SEGMENT INFORMATION (Tables)

3 Months Ended

Aug. 31, 2025

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


	Three Months Ended August 31,
(in millions)	2025		2024
Cloud and software:
Revenues	$	12,907	$	11,389
Cloud and software expenses		3,418		2,422
Sales and marketing expenses		1,798		1,771
Margin(1)	$	7,691	$	7,196
Hardware:
Revenues	$	670	$	655
Hardware products and support expenses		169		152
Sales and marketing expenses		54		65
Margin(1)	$	447	$	438
Services:
Revenues	$	1,349	$	1,263
Services expenses		1,017		1,066
Margin(1)	$	332	$	197
Totals:
Revenues	$	14,926	$	13,307
Expenses		6,456		5,476
Margin(1)	$	8,470	$	7,831

(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, acquisition related and other expenses, restructuring 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)	2025			2024
Total margin for operating segments	$	8,470		$	7,831
Research and development		(2,491	)		(2,306	)
General and administrative		(376	)		(358	)
Amortization of intangible assets		(420	)		(624	)
Acquisition related and other		(13	)		(13	)
Restructuring		(402	)		(73	)
Stock-based compensation for operating segments		(389	)		(352	)
Expense allocations and other, net		(102	)		(114	)
Interest expense		(923	)		(842	)
Non-operating income, net		73			20
Income before income taxes	$	3,427		$	3,169

Disaggregation of Revenue by Geography

The following table is a summary of our total revenues by geographic region:


	Three Months Ended August 31,
(in millions)	2025		2024
Americas	$	9,662	$	8,372
EMEA(1)		3,481		3,228
Asia Pacific		1,783		1,707
Total revenues	$	14,926	$	13,307

(1)

Comprised of Europe, the Middle East and Africa

The following table presents our software revenues by offerings:


	Three Months Ended August 31,
(in millions)	2025		2024
Software license	$	766	$	870
Software support		4,955		4,896
Total software revenues	$	5,721	$	5,766

The following table presents our cloud revenues by offerings:


	Three Months Ended August 31,
(in millions)	2025		2024
Cloud applications	$	3,839	$	3,469
Cloud infrastructure		3,347		2,154
Total cloud revenues	$	7,186	$	5,623