Oracle — 2026Q3 財報

“Total quarterly revenues increased 30% to $19.3 billion, reflecting strong execution in our infrastructure business, with the delivery of 850MW additional datacenter capacity. Cloud revenues (IaaS + SaaS) increased 62% to $11.6 billion, driven by 121% growth in Cloud Infrastructure (IaaS), and 10% growth in Cloud Applications (SaaS).”

Revenue of $19.3 billion grew 30%, and the release locates the growth in infrastructure: cloud revenue of $11.6 billion rose 62%, with Cloud Infrastructure (IaaS) up 121% and Cloud Applications (SaaS) up 10%.

“Q1 GAAP earnings per share increased to $1.56, up 55%, and non-GAAP earnings per share climbed to $1.92, up 30%.”

A units note for the figures shown above: the $1.92 earnings per share is Oracle's non-GAAP number. GAAP diluted EPS for the same quarter was $1.56 — and the GAAP line grew faster, up 55% against 30%.

“Software revenues were down 3% to $5.5 billion, reflecting our customers’ continuing migration from on-premises software to the Cloud. Services revenues were $1.4 billion, up 5%, and Hardware revenues were $0.8 billion, up 15%.”

The growth is not universal inside the business: software revenue fell 3% to $5.5 billion, which the release attributes to customers continuing to migrate from on-premises software to the cloud.

“Customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply. Oracle booked more than $30 billion of additional AI cloud contracts in Q1 increasing its RPO to $664 billion. Based on the structuring of those new contracts, the Company confirms there is no incremental impact on its plans to raise capital. Since the end of Q4, Oracle also delivered more than 300,000 GPUs to its AI Cloud customers and almost triple the capacity delivered in Q4 FY26.”

Backlog is the quarter's largest number: more than $30 billion of additional AI cloud contracts took remaining performance obligations to $664 billion, and the release states that, given how those contracts are structured, there is no incremental impact on Oracle's plans to raise capital.

“Oracle’s strong operating income translated to a record Q1 operating cash flow of $23 billion, up 184%. Free cash flow was negative $5 billion for Q1 as Oracle continued to execute on investments to support the growth of its Cloud Infrastructure business.”

The cost of the build shows up in the cash statement: operating cash flow was a Q1 record $23 billion, up 184%, and free cash flow was still negative $5 billion, which the release ties to continued investment behind the Cloud Infrastructure business.

“During Q1 FY 2027, Oracle successfully completed the sale of $20 billion of common stock (before commissions) through an At-the-Market (ATM) equity program, as part of its previously disclosed capital investment program.”

Part of that spending was funded with newly issued stock: Oracle completed the sale of $20 billion of common stock through an at-the-market equity program during the quarter, which the release frames as part of its previously disclosed capital investment program.

“For fiscal year 2027, we now expect total revenue to be at least $90 billion, and non-GAAP EPS to be at $8.10.”

Full-year guidance moved up with the quarter: Oracle now expects at least $90 billion of fiscal 2027 revenue and $8.10 of non-GAAP EPS.

“Non-GAAP earnings per share is expected to be between $1.83 and $1.91 in constant currency and between $1.85 and $1.93 in USD, which represents growth of 19% to 23% in constant currency and 21% to 25% in USD excluding a one-time gain from Q2 FY2026”

The next quarter's headline growth rate is a conditional one. Q2 non-GAAP EPS is guided to $1.85 to $1.93 in US dollars, presented as 21% to 25% growth — but only excluding a one-time gain booked in the year-ago quarter.

“Q2 FY26 results included a one-time net investment gain from the sale of Oracle's interest in Ampere. Including the investment gain, Q2 FY27 non-GAAP earnings per share is expected to decline between -19% and -15% in constant currency and decline between -18% and -14% in USD.”

The release's own footnote states the other side of it: including the Ampere gain booked a year earlier, Q2 non-GAAP EPS is guided to decline between 14% and 18% in US dollars.

“If I had to describe this quarter in 1 word, I think it would be acceleration as we are seeing an acceleration in execution across the company translating into our top and bottom line results.”

Opening the prepared remarks, CFO Hilary Maxson summarised the quarter in one word — acceleration — and attributed it to execution across the company reaching both the top and bottom line.

“And for the first time, Q1 total revenue grew sequentially, an important sign of our continued progress in building scaled infrastructure. Historically, a record Q4 was followed by a lighter Q1. But as we accelerate across the full technology stack, from infrastructure to database to software, that is no longer the case.”

The structural change she pointed to is a first for Oracle: Q1 total revenue grew sequentially, where historically a record Q4 was followed by a lighter Q1.

“Our gross margin did decline as expected driven by impacts from ramping up our data centers and the acceleration of infrastructure revenue. However, this was offset in the quarter by lower operating costs and strong operating leverage tied to simplification and efficiency actions. Net, our operating margin remained around flat for the quarter at 42%, on a non-GAAP basis.”

Management named the margin cost of the ramp in the prepared remarks rather than waiting to be asked: gross margin declined as expected on data-center ramp-up and the acceleration of infrastructure revenue, offset by lower operating costs, leaving non-GAAP operating margin around flat at 42%.

“First, we continued to grow our RPO during the quarter to support future revenues, and the vast majority of those new contracts were via prepay or bring your own hardware or a similar mechanic so will not require incremental capital from Oracle. Also, that new RPO will not impact our CapEx or revenues until fiscal 28 or beyond.”

The CFO described how the new backlog is structured and when it lands: the vast majority of the new contracts came via prepay or bring-your-own-hardware, and the new RPO will not affect capex or revenue until fiscal 28 or beyond.

“We now expect around half of our RPO to convert into sales over the next 36 months.”

She also put a conversion rate on the backlog: around half of RPO is now expected to convert into sales over the next 36 months.

“To note, our CapEx will not be linear throughout the year. We continue to anticipate $90 billion to $95 billion in CapEx for the full year with not more than $70 billion in net cash CapEx.”

Full-year capital expenditure was reaffirmed at $90 billion to $95 billion, with not more than $70 billion of that in net cash capex, and the CFO flagged that the spend will not be linear across the year.

“The other question I think you asked was about free cash flow. We have not given a particular time frame on that. Yet, and we do not expect to give that today.”

Asked directly when Oracle returns to generating positive free cash flow, the CFO declined to put a time frame on it.

“I did not say and I do not I do not think myself nor Hillary said that it does not require additional CapEx. We said it does not require additional cash from Oracle.”

Pressed on the bookings described as not requiring additional capital, co-CEO Clayton Magouyrk corrected the shorthand himself: the contracts do involve capital expenditure — what they do not require is additional cash from Oracle.

“Of all the GPUs that came up for renewal in Q1, that capacity was renewed or resold at a 20% premium to prior contracts. The majority of those GPUs are 4 years or older.”

The evidence Magouyrk offered on GPU useful life was a price rather than an accounting estimate: capacity coming up for renewal in Q1 was renewed or resold at a 20% premium to prior contracts, with the majority of those GPUs 4 years or older.

“We just delivered 850 megawatts in Q1. And what that means is that and as you can see, neither Shackleford nor New Mexico or Wisconsin or Michigan were delivered in Q1.”

Asked about speculation over data-center delays in New Mexico and Wisconsin, Magouyrk answered first with where the quarter's capacity actually came from: neither of those sites, nor Shackleford or Michigan, delivered in Q1.

“anyone that is been in the business of doing construction or large scale infrastructure development if they if their plan relies on 100% achievement of every 1 of their deliverables, We have a term for that. it is called a bad plan.”

In the same answer he described how the delivery plan is built, which is also the clearest statement of how much slack the guidance carries.

“Over the next couple of years, as we finish the ramp up, you can reasonably expect that gross margin would flatten, I would say. But we have not given any part particular guidance today.”

On where gross margin goes from here, the CFO would say only that it should flatten once the ramp-up finishes, and gave no guidance on it on the call.