Oracle — 2026Q2 earnings
reported 2026-06-10
EPS $2.11 vs $1.96 est — beat
next session -8.5% (close 2026-06-10 → 2026-06-11)
Source
Press release ↗Summary
A record fiscal Q4 built on AI infrastructure: revenue of $19.2 billion grew 21% with cloud up 47% on 93% IaaS growth, and RPO exploded 363% to $638 billion — up $85 billion in the quarter alone — while the cost of that demand showed in FY26 free cash flow of negative $23.7 billion despite record operating cash flow of $32.0 billion ($75 billion of the large AI contracts is prepaid or customer-supplied hardware, easing Oracle's own capital needs). On the call, the new leadership trio framed the story as capacity and returns: over 1.2 gigawatts delivered in FY26 with nearly another gigawatt coming in Q1, capacity essentially sold out at 97.5% GPU utilization, and roughly $70 billion of net cash capex outlay for FY27. FY27 guidance held at $90 billion of revenue with non-GAAP EPS raised to $8.05, and the Analyst Day outlook of +31% revenue and +28% EPS CAGR was fully reconfirmed.
Earnings call
Earnings call webcast ↗Review
From the report
Oracle's June 10 report (its fiscal Q4/FY 2026) was a record quarter built on AI infrastructure: revenue of $19.2 billion grew 21% with cloud up 47% on 93% IaaS growth, and RPO exploded to $638 billion. The cost of that demand is visible too — FY26 free cash flow was negative $23.7 billion despite $32.0 billion of operating cash flow — while FY27 guidance held at $90 billion of revenue with non-GAAP EPS raised to $8.05.
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Record quarterly revenue of $19.2 billion, up 21%, led by cloud demand. show quote
“Total quarterly revenues increased 21% to $19.2 billion, reflecting broad-based demand for Oracle's industry-leading cloud technology and applications suites.”
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Total cloud revenue reached $9.9 billion, up 47%, with Cloud Infrastructure (IaaS) growing 93% — the engine of the quarter. show quote
“Cloud revenues (IaaS + SaaS) increased 47% to $9.9 billion driven by 93% growth in Cloud Infrastructure (IaaS), and 10% growth in Cloud Applications (SaaS).”
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Remaining Performance Obligations hit $638 billion, up 363% year over year and up $85 billion in the quarter alone. show quote
“Remaining Performance Obligations, or RPO, ended the quarter at $638 billion, up 363% USD year-over-year and up $85 billion sequentially from the end of Q3.”
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$75 billion of the large AI contracts is prepaid or customer-supplied hardware, easing how much capital Oracle itself must raise for AI datacenters. show quote
“The prepaid and customer supplied hardware portions of our large AI contracts now total $75 billion. This substantially reduces the amount of capital Oracle must raise to build out our AI datacenters.”
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FY26 operating cash flow was a record $32.0 billion, up 54%, but free cash flow was negative $23.7 billion because of the AI infrastructure buildout. show quote
“Oracle’s strong operating income translated to record fiscal year operating cash flow of $32.0 billion, up 54%. Free cash flow was negative $23.7 billion for fiscal year 2026 as Oracle continued to execute on investments to support the growth of its Cloud Infrastructure business.”
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FY27 guidance: revenue outlook confirmed at $90 billion and non-GAAP EPS guidance raised to $8.05. show quote
“For fiscal year 2027, we confirm our prior revenue guidance of $90 billion total revenue and raise our non-GAAP EPS guidance to $8.05, which is growth of 18% 1 after adjusting for the one-time events of selling our Ampere chip business and Bloom Energy warrants in fiscal year 2026.”
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From the call
On the call the new leadership trio (co-CEOs Sicilia and Magouyrk plus new CFO Maxson) framed the story as capacity and returns: over 1.2 gigawatts delivered in FY26 with nearly 1 gigawatt more coming in Q1, GPUs running at 97.5% utilization, roughly $70 billion of net cash outlay for FY27 capital expenditures, and a full reconfirmation of the Analyst Day outlook of +31% revenue CAGR and +28% EPS CAGR.
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Co-CEO Clayton Magouyrk said datacenter delivery is accelerating sharply — over 1.2 gigawatts delivered in FY 2026 and Q1 FY 2027 alone approaching 1 gigawatt. show quote
“Q4 finalized an impressive FY 2026, where we delivered more than 1.2 gigawatts to customers. Our pace of delivery continues to accelerate, our FY 2027 Q1 delivery approaching 1 gigawatt, nearly the same capacity as we have delivered in the previous 4 quarters combined.”
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Magouyrk said capacity is essentially sold out, citing 97.5% global GPU utilization. show quote
“Our global GPU utilization rate is 97.5%.”
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CFO Hilary Maxson put FY 2027 net cash outlay for capital expenditures at around $70 billion (excluding $20-25 billion of customer prepayments/timing). show quote
“So indeed, for fiscal year 2027, we expect around 70 billion in net cash outlay for capital expenditures.”
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Maxson reaffirmed the Analyst Day long-term outlook of +31% revenue CAGR and +28% EPS CAGR, grounded in RPO visibility. show quote
“Customer demand and our growing visibility into future revenue is what underpins the long term financial outlook we shared at our most recent Analyst Day of +31% revenue CAGR and +28% EPS CAGR through our fiscal year 2020 30.”
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as of 2026-08-10