v3.25.4
LEASES AND OTHER COMMITMENTS
9 Months Ended
Feb. 28, 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
February 28,

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Operating lease cost

 

$

725

 

 

$

440

 

 

$

1,932

 

 

$

1,209

 

Finance lease cost:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of ROU assets

 

$

98

 

 

$

8

 

 

$

232

 

 

$

8

 

Interest on lease liabilities

 

 

77

 

 

 

6

 

 

 

184

 

 

 

6

 

Total finance lease cost

 

$

175

 

 

$

14

 

 

$

416

 

 

$

14

 

 

Supplemental balance sheet information related to leases was as follows:

 

(in millions)

 

February 28,
2026

 

 

May 31,
2025

 

Operating leases:

 

 

 

 

 

 

Operating lease ROU assets

 

$

20,817

 

 

$

13,145

 

Operating lease liabilities:

 

 

 

 

 

 

Operating lease liabilities, current

 

$

2,798

 

 

$

1,914

 

Operating lease liabilities, non-current

 

 

18,512

 

 

 

11,536

 

Total operating lease liabilities

 

$

21,310

 

 

$

13,450

 

Finance leases:

 

 

 

 

 

 

Finance lease ROU assets

 

$

6,060

 

 

$

2,874

 

Finance lease liabilities:

 

 

 

 

 

 

Finance lease liabilities, current

 

$

539

 

 

$

257

 

Finance lease liabilities, non-current

 

 

5,711

 

 

 

2,677

 

Total finance lease liabilities

 

$

6,250

 

 

$

2,934

 

Supplemental cash flow information related to leases was as follows:

 

 

 

Nine Months Ended
February 28,

 

(in millions)

 

2026

 

 

2025

 

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

 

 

 

 

 

 

Operating leases

 

$

1,741

 

 

$

1,151

 

Finance leases

 

$

286

 

 

$

8

 

ROU assets obtained in exchange for lease obligations:

 

 

 

 

 

 

Operating leases

 

$

8,837

 

 

$

5,404

 

Finance leases

 

$

3,419

 

 

$

902

 

Maturities of lease liabilities were as follows as of February 28, 2026 (in millions):

 

 

Operating
Leases

 

 

Finance
Leases

 

Remainder of fiscal 2026

 

$

807

 

 

$

154

 

Fiscal 2027

 

 

2,712

 

 

 

535

 

Fiscal 2028

 

 

2,665

 

 

 

551

 

Fiscal 2029

 

 

2,589

 

 

 

567

 

Fiscal 2030

 

 

2,562

 

 

 

584

 

Fiscal 2031

 

 

2,507

 

 

 

601

 

Thereafter

 

 

14,884

 

 

 

6,199

 

Total lease payments

 

 

28,726

 

 

 

9,191

 

Less: imputed interest

 

 

(7,416

)

 

 

(2,941

)

Total lease liability

 

$

21,310

 

 

$

6,250

 

As of February 28, 2026, we had $261 billion of additional lease commitments, substantially all related to data center arrangements, that are generally expected to commence between the fourth quarter of fiscal 2026 and fiscal 2028 and for terms of fifteen to nineteen years that were not reflected on our condensed consolidated balance sheets as

of February 28, 2026. These additional lease commitments include a lease for which we have guaranteed up to $2.2 billion of the lessors borrowing, which matures in September 2026.

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 February 28, 2026, our unconditional purchase and certain other obligations, which were primarily related to data center power arrangements, were $11 billion.