Oracle Stock Earnings Reports

Oracle reported a strong Q2 FY2026 with accelerating revenue and cloud momentum. Total revenue was $16.1B, up 13% (constant currency). Total cloud revenue reached $8.0B, up 33%, now representing roughly half of overall revenue. Remaining Performance Obligations (RPO) rose to $523.3B, up 433% YoY, driven by large AI infrastructure contracts (e.g., Meta, NVIDIA) and adding $68B since August; RPO expected-to-be-recognized in 12 months grew 40% YoY. OCI (cloud infrastructure) revenue was $4.1B, up 66% (GPU-related revenue +177%); cloud database services +30% (Autonomous DB +43%); cloud applications $3.9B, +11% with industry/back-office apps showing synergy and acceleration. Non-GAAP EPS was $2.26 (+51%); operating income $6.7B (+8%). Operating cash flow was $2.1B; free cash flow was negative ~$10B due to $12B CapEx for data-center equipment. Management expects to monetize added RPO quickly: they now expect $4B of additional revenue in FY2027. FY2026 revenue guide remains $67B, but fiscal 2026 CapEx is now expected to be ~ $15B higher than post-Q1 guidance due to capacity build-out. Q3 guidance: cloud revenue growth ~37–41% cc, total revenue growth ~16–18% cc, and non-GAAP EPS growth ~12–14% cc (EPS $1.64–$1.68 cc). Key strategic messages: rapid, capital-intensive OCI expansion to meet AI demand (147 live regions, many planned), multiple financing and customer-supplied hardware models to limit capital needs while maintaining investment-grade debt, and Oracle’s differentiated AI position via its AI database and AI data platform that unify private enterprise data for reasoning with leading models. Management emphasizes disciplined, margin-aware capacity deployment and expects continued acceleration in cloud and applications driven by AI and cross-selling.