Oracle reported strong Q2 FY2026 results with significant growth in cloud revenues and remaining performance obligations, bolstered by a one-time gain from asset sale. The company is emphasizing its commitment to chip neutrality and embedding AI across its product suite.
Total Remaining Performance Obligations (RPO) reached $523 billion, up 438% year-over-year, with a sequential increase of 15%.
positiveTotal revenues increased 14% in USD to $16.1 billion, and 13% in constant currency.
positiveCloud revenue (IaaS plus SaaS) grew 34% in USD to $8.0 billion, and 33% in constant currency.
positiveCloud Infrastructure (IaaS) revenue surged 68% in USD to $4.1 billion, and 66% in constant currency.
positiveGAAP diluted EPS increased 91% to $2.10, and Non-GAAP diluted EPS increased 54% to $2.26.
positiveOperating cash flow was $22.3 billion over the last twelve months, up 10% in USD.
positiveSoftware revenues declined 3% in USD and 5% in constant currency to $5.9 billion.
negativeCloud Application (SaaS) revenue grew 11% in USD and constant currency, a slower growth rate compared to Cloud Infrastructure.
attentionRestructuring expenses increased significantly by 387% in USD and 378% in constant currency.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Cloud | $7977000.0B | $5937000.0B | +34.0% | 49.7% | +33.0% |
Software | $5877000.0B | $6064000.0B | -3.0% | 36.6% | -5.0% |
Services | $1428000.0B | $1330000.0B | +7.0% | 8.9% | +6.0% |
Hardware | $776000.0B | $728000.0B | +7.0% | 4.8% | +5.0% |
| Total Revenue | $16058000.0B | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Oracle is committed to a policy of chip neutrality, working with all CPU and GPU suppliers, including NVIDIA.
The company is focused on embedding AI across its Cloud Datacenter software, Autonomous Database, and Applications software.
Oracle's Multicloud database business is its fastest growing business, up 817% in Q2.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.