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SEGMENT INFORMATION (Tables)
 6 Months Ended
Nov. 30, 2024
Segment Reporting [Abstract]  
Summary of Businesses Results

 

 

Three Months Ended
November 30,

 

 

Six Months Ended
November 30,

 

(in millions)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Cloud and license:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

12,001

 

 

$

10,817

 

 

$

23,389

 

 

$

21,173

 

Cloud services and license support expenses

 

 

2,555

 

 

 

2,105

 

 

 

4,977

 

 

 

4,145

 

Sales and marketing expenses

 

 

1,888

 

 

 

1,797

 

 

 

3,659

 

 

 

3,582

 

Margin(1)

 

$

7,558

 

 

$

6,915

 

 

$

14,753

 

 

$

13,446

 

Hardware:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

728

 

 

$

756

 

 

$

1,383

 

 

$

1,470

 

Hardware products and support expenses

 

 

161

 

 

 

204

 

 

 

313

 

 

 

415

 

Sales and marketing expenses

 

 

69

 

 

 

78

 

 

 

135

 

 

 

148

 

Margin(1)

 

$

498

 

 

$

474

 

 

$

935

 

 

$

907

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,330

 

 

$

1,368

 

 

$

2,594

 

 

$

2,751

 

Services expenses

 

 

1,080

 

 

 

1,166

 

 

 

2,145

 

 

 

2,311

 

Margin(1)

 

$

250

 

 

$

202

 

 

$

449

 

 

$

440

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

14,059

 

 

$

12,941

 

 

$

27,366

 

 

$

25,394

 

Expenses

 

 

5,753

 

 

 

5,350

 

 

 

11,229

 

 

 

10,601

 

Margin(1)

 

$

8,306

 

 

$

7,591

 

 

$

16,137

 

 

$

14,793

 

 

(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 (expenses), 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 Operating Segment Margin to Income before Income Taxes

 

 

Three Months Ended
November 30,

 

 

Six Months Ended
November 30,

 

(in millions)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Total margin for operating segments

 

$

8,306

 

 

$

7,591

 

 

$

16,137

 

 

$

14,793

 

Research and development

 

 

(2,471

)

 

 

(2,226

)

 

 

(4,777

)

 

 

(4,442

)

General and administrative

 

 

(387

)

 

 

(375

)

 

 

(745

)

 

 

(769

)

Amortization of intangible assets

 

 

(591

)

 

 

(755

)

 

 

(1,215

)

 

 

(1,518

)

Acquisition related and other

 

 

(31

)

 

 

(47

)

 

 

(44

)

 

 

(58

)

Restructuring

 

 

(84

)

 

 

(83

)

 

 

(157

)

 

 

(222

)

Stock-based compensation for operating segments

 

 

(414

)

 

 

(362

)

 

 

(765

)

 

 

(646

)

Expense allocations and other, net

 

 

(108

)

 

 

(121

)

 

 

(223

)

 

 

(220

)

Interest expense

 

 

(866

)

 

 

(888

)

 

 

(1,708

)

 

 

(1,760

)

Non-operating income (expenses), net

 

 

36

 

 

 

(14

)

 

 

57

 

 

 

(63

)

Income before income taxes

 

$

3,390

 

 

$

2,720

 

 

$

6,560

 

 

$

5,095

 
Disaggregation of Revenue by Geography and Ecosystem

 

 

Three Months Ended
November 30,

 

 

Six Months Ended
November 30,

 

(in millions)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Americas

 

$

8,933

 

 

$

8,067

 

 

$

17,305

 

 

$

15,907

 

EMEA(1)

 

 

3,381

 

 

 

3,170

 

 

 

6,609

 

 

 

6,175

 

Asia Pacific

 

 

1,745

 

 

 

1,704

 

 

 

3,452

 

 

 

3,312

 

Total revenues

 

$

14,059

 

 

$

12,941

 

 

$

27,366

 

 

$

25,394

 

 

(1)
Comprised of Europe, the Middle East and Africa

 

 

Three Months Ended
November 30,

 

 

Six Months Ended
November 30,

 

(in millions)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Cloud services

 

$

5,937

 

 

$

4,775

 

 

$

11,559

 

 

$

9,410

 

License support

 

 

4,869

 

 

 

4,864

 

 

 

9,765

 

 

 

9,776

 

Total cloud services and license support revenues

 

$

10,806

 

 

$

9,639

 

 

$

21,324

 

 

$

19,186

 

 

The following table presents our cloud services and license support revenues by applications and infrastructure ecosystems

 

 

Three Months Ended
November 30,

 

 

Six Months Ended
November 30,

 

(in millions)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Applications cloud services and license support

 

$

4,784

 

 

$

4,474

 

 

$

9,552

 

 

$

8,945

 

Infrastructure cloud services and license support

 

 

6,022

 

 

 

5,165

 

 

 

11,772

 

 

 

10,241

 

Total cloud services and license support revenues

 

$

10,806

 

 

$

9,639

 

 

$

21,324

 

 

$

19,186