|
|
|
|
|||||
|
|
|
AUSTIN, Texas, June 10, 2026 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced another record quarter with strong revenue growth across its Cloud Infrastructure and Cloud Applications businesses. Total quarterly revenues increased 21% to $19.2 billion, reflecting broad-based demand for Oracle's industry-leading cloud technology and applications suites. 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). Software revenues were down 2% to $6.8 billion, reflecting our customers' continuing migration from on-premise software to the Cloud. Services revenues were $1.5 billion, up 13%, and Hardware revenues were $0.9 billion, up 9%.
Oracle generated Q4 GAAP operating income of $6.1 billion, up 20%, while non-GAAP operating income rose to a record $8.6 billion, up 22%, driven by strong revenue growth and operating efficiency actions taken during the quarter. GAAP net income available to common shareholders reached $4.2 billion, up 23%, and non-GAAP net income available to common shareholders grew to $6.2 billion, up 26%. Q4 GAAP earnings per share increased to $1.45, up 21%, and non-GAAP earnings per share climbed to $2.111, up 24%.
Financial Results for FY 2026
Fiscal year 2026 total revenues were up 17% to a record $67.4 billion. Cloud revenues increased 39% to $34.0 billion. Software revenues were down 1% to $24.5 billion. Services revenues were $5.7 billion, up 10%, and Hardware revenues were $3.1 billion, up 5%.
Fiscal year 2026 GAAP operating income was $20.6 billion, up 17%, and non-GAAP operating income rose to a record $28.9 billion, up 16%. GAAP net income available to common shareholders reached $17.0 billion, up 36%, while non-GAAP net income available to common shareholders grew to $22.2 billion, up 29%. GAAP earnings per share increased to $5.83, up 34%, while non-GAAP earnings per share climbed to $7.631, up 27%.
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.
Remaining Performance Obligations
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.
Most of the RPO increase in both Q3 and Q4 were large scale AI contracts where the customer prepaid Oracle for the purchase of the GPUs, or the customer bought and supplied the GPUs to Oracle. 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.
Capital Investment Program and Capital Funding
Oracle's capital investment program supports the pursuit of unprecedented opportunities in AI Cloud Infrastructure as described at our most recent Financial Analyst Meeting. In fiscal year 2026, Oracle raised $43 billion in debt financing and $5 billion in equity financing. In fiscal year 2027, Oracle expects to raise approximately $40 billion through a combination of debt and equity financing including its previously announced $20 billion at-the-market equity issuance. Oracle does not expect to issue additional debt in calendar year 2026.
Guidance for Q1 FY 2027
Oracle is providing the following forward-looking guidance for Q1 FY 2027:
Guidance for Full FY 2027
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.
AI Market and Technology Evolution
The large increases in Oracle's RPO and revenue are driven by the growing demand for cloud infrastructure for AI training and inferencing. Oracle is building datacenters that are intended to use clean energy from natural gas fuel cells to generate electricity with minimal emissions. Other innovations in the areas of high-performance networking, advanced security and autonomous software have made Oracle the world's fastest growing provider of cloud datacenters.
Our database and applications businesses are both benefiting from Oracle's early adoption of AI. The Oracle Multicloud AI Database grew 404% in Q4—making it our fastest growing business ever. The Oracle Health application suite will soon include a completely new AI version of the Cerner hospital and clinic patient care management system. We expect this new AI patient care management system to push the growth rate of the overall Oracle Health business to double-digits in fiscal year 2027. And this is just the beginning of the expansion of the Oracle Health business.
We believe AI is about to completely revolutionize healthcare. Improvements in patient care are expected to yield much better patient outcomes, while dramatically lowering the cost of healthcare throughout the world. Oracle Health AI systems will allow doctors to spend less time with computers and more time with patients. AI molecular design models are expected to enable researchers to accelerate the development of life-saving drugs. Oracle's new AI clinical trial system is designed to enable regulators to rapidly review and approve clinical trial test results enabling patients to get access to new drugs sooner. AI will make healthcare better, more accessible, and less expensive.
Common Stock Quarterly Dividend
The board of directors declared a quarterly cash dividend of $0.50 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on July 10, 2026, with a payment date of July 24, 2026.
Footnotes
1 – Q4 and FY 2026 results include one-time net investment gains from certain transactions. Excluding these investment gains, Q4 non-GAAP EPS would be $2.03, up 20% in USD and up 18% in constant currency and FY 2026 non-GAAP EPS would be $6.83, up 13% in USD and up 11% in constant currency. Excluding these same investment gains, FY 2027 non-GAAP EPS growth would be 18%.
Other Information
Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor/.
About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.
Trademarks
Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.
"Safe Harbor" Statement: Statements in this press release relating to future plans, expectations, beliefs, intentions and prospects, including statements regarding expected future revenues, cloud revenue growth, earnings per share, remaining performance obligations, future customer demand for AI and cloud infrastructure services, future capital expenditures and financing requirements, planned debt and equity financing activities, planned datacenter expansion and technology deployment, future product offerings and enhancements, anticipated benefits of AI technologies and AI-enabled healthcare solutions, expected growth of Oracle Health, future market opportunities and future dividend payments are "forward-looking statements" and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services, including our AI products; our management of complex cloud and hardware offerings, including the sourcing of technologies and technology components such as graphic processing units; our ability to anticipate, plan for, secure and manage datacenter capacity; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions; business volatility and risks associated with government contracting; economic, political and market conditions, including tariffs and trade wars; information technology system failures, privacy and data security concerns; cybersecurity breaches; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of June 10, 2026. Oracle undertakes no duty to update any statement in light of new information or future events.
ORACLE CORPORATION | ||||||||
Q4 FISCAL 2026 FINANCIAL RESULTS | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
Three Months Ended May 31, | % Increase | |||||||
% Increase | (Decrease) | |||||||
2026 | % of | 2025 | % of | (Decrease) | in Constant | |||
Revenues | Revenues | in US $ | Currency (1) | |||||
REVENUES | ||||||||
Cloud | $ 9,913 | 52 % | $ 6,737 | 43 % | 47 % | 46 % | ||
Software | 6,824 | 35 % | 6,968 | 44 % | (2 %) | (3 %) | ||
Hardware | 924 | 5 % | 850 | 5 % | 9 % | 7 % | ||
Services | 1,523 | 8 % | 1,348 | 8 % | 13 % | 12 % | ||
Total revenues | 19,184 | 100 % | 15,903 | 100 % | 21 % | 20 % | ||
OPERATING EXPENSES | ||||||||
Cloud and software | 5,224 | 27 % | 3,343 | 21 % | 56 % | 56 % | ||
Hardware | 293 | 2 % | 252 | 2 % | 16 % | 13 % | ||
Services | 1,155 | 6 % | 1,145 | 7 % | 1 % | 0 % | ||
Sales and marketing | 2,068 | 11 % | 2,306 | 15 % | (10 %) | (12 %) | ||
Research and development | 2,613 | 14 % | 2,654 | 17 % | (2 %) | (1 %) | ||
General and administrative | 444 | 2 % | 467 | 3 % | (5 %) | (5 %) | ||
Amortization of intangible assets | 431 | 2 % | 544 | 3 % | (21 %) | (21 %) | ||
Restructuring and other | 823 | 4 % | 83 | 0 % | 899 % | 901 % | ||
Total operating expenses | 13,051 | 68 % | 10,794 | 68 % | 21 % | 20 % | ||
OPERATING INCOME | 6,133 | 32 % | 5,109 | 32 % | 20 % | 18 % | ||
Interest expense | (1,438) | (8 %) | (978) | (6 %) | 47 % | 47 % | ||
Non-operating income, net | 675 | 4 % | 20 | 0 % | * | * | ||
INCOME BEFORE INCOME TAXES | 5,370 | 28 % | 4,151 | 26 % | 29 % | 27 % | ||
Provision for income taxes | 1,066 | 6 % | 724 | 4 % | 47 % | 45 % | ||
NET INCOME | $ 4,304 | 22 % | $ 3,427 | 22 % | 26 % | 23 % | ||
Preferred stock dividends | 81 | - | ||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 4,223 | $ 3,427 | ||||||
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS: | ||||||||
Basic | $ 1.47 | $ 1.22 | ||||||
Diluted | $ 1.45 | $ 1.19 | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||
Basic | 2,878 | 2,805 | ||||||
Diluted | 2,915 | 2,871 | ||||||
(1) | We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months ended May 31, 2026 compared with the corresponding prior year period increased our total revenues by 1 percentage point, total operating expenses by 1 percentage point and operating income by 2 percentage points. | |||||||
* | Not meaningful | |||||||
ORACLE CORPORATION | ||||||||||||||||||||
Q4 FISCAL 2026 FINANCIAL RESULTS | ||||||||||||||||||||
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) | ||||||||||||||||||||
($ in millions, except per share data) | ||||||||||||||||||||
Three Months Ended May 31, | % Increase | % Increase | ||||||||||||||||||
2026 | 2026 | 2025 | 2025 | GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||||||
GAAP | Adj. | Non-GAAP | GAAP | Adj. | Non-GAAP | |||||||||||||||
TOTAL REVENUES | $ 19,184 | $ - | $ 19,184 | $ 15,903 | $ - | $ 15,903 | 21 % | 21 % | 20 % | 20 % | ||||||||||
TOTAL OPERATING EXPENSES | $ 13,051 | $ (2,457) | $ 10,594 | $ 10,794 | $ (1,926) | $ 8,868 | 21 % | 19 % | 20 % | 19 % | ||||||||||
Stock-based compensation (3) | 1,203 | (1,203) | - | 1,299 | (1,299) | - | (7 %) | * | (7 %) | * | ||||||||||
Amortization of intangible assets (4) | 431 | (431) | - | 544 | (544) | - | (21 %) | * | (21 %) | * | ||||||||||
Restructuring and other | 823 | (823) | - | 83 | (83) | - | 899 % | * | 901 % | * | ||||||||||
OPERATING INCOME | $ 6,133 | $ 2,457 | $ 8,590 | $ 5,109 | $ 1,926 | $ 7,035 | 20 % | 22 % | 18 % | 21 % | ||||||||||
OPERATING MARGIN % | 32 % | 45 % | 32 % | 44 % | (16) bp. | 54 bp. | (42) bp. | 44 bp. | ||||||||||||
INCOME TAX EFFECTS (5) | $ 1,066 | $ 527 | $ 1,593 | $ 724 | $ 472 | $ 1,196 | 47 % | 33 % | 45 % | 32 % | ||||||||||
NET INCOME | $ 4,304 | $ 1,930 | $ 6,234 | $ 3,427 | $ 1,454 | $ 4,881 | 26 % | 28 % | 23 % | 26 % | ||||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 4,223 | $ 1,930 | $ 6,153 | $ 3,427 | $ 1,454 | $ 4,881 | 23 % | 26 % | 21 % | 25 % | ||||||||||
DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 1.45 | $ 2.11 | $ 1.19 | $ 1.70 | 21 % | 24 % | 19 % | 23 % | ||||||||||||
DILUTED WEIGHTED AVERAGE COMMON | 2,915 | - | 2,915 | 2,871 | - | 2,871 | 2 % | 2 % | 2 % | 2 % | ||||||||||
(1) | This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A. | |||||||||||||||||||
(2) | We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. | |||||||||||||||||||
(3) | Stock-based compensation was included in the following GAAP operating expense categories: | |||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
May 31, 2026 | May 31, 2025 | |||||||||||||||||||
GAAP | Adj. | Non-GAAP | GAAP | Adj. | Non-GAAP | |||||||||||||||
Cloud and software | $ 144 | $ (144) | $ - | $ 150 | $ (150) | $ - | ||||||||||||||
Hardware | 6 | (6) | - | 7 | (7) | - | ||||||||||||||
Services | 52 | (52) | - | 52 | (52) | - | ||||||||||||||
Sales and marketing | 185 | (185) | - | 200 | (200) | - | ||||||||||||||
Research and development | 705 | (705) | - | 737 | (737) | - | ||||||||||||||
General and administrative | 111 | (111) | - | 153 | (153) | - | ||||||||||||||
Total stock-based compensation | $ 1,203 | $ (1,203) | $ - | $ 1,299 | $ (1,299) | $ - | ||||||||||||||
(4) | Estimated future annual amortization expense related to intangible assets as of May 31, 2026 was as follows: | |||||||||||||||||||
Fiscal 2027 | $ 731 | |||||||||||||||||||
Fiscal 2028 | 694 | |||||||||||||||||||
Fiscal 2029 | 620 | |||||||||||||||||||
Fiscal 2030 | 582 | |||||||||||||||||||
Fiscal 2031 | 377 | |||||||||||||||||||
Thereafter | 225 | |||||||||||||||||||
Total intangible assets, net | $ 3,229 | |||||||||||||||||||
(5) | Income tax effects were calculated reflecting an effective GAAP tax rate of 19.8% and 17.5% in the fourth quarter of fiscal 2026 and 2025, respectively, and an effective non-GAAP tax rate of 20.4% and 19.7% in the fourth quarter of fiscal 2026 and 2025, respectively. The difference in our GAAP and non-GAAP tax rates in each of the fourth quarters of fiscal 2026 and 2025 was primarily due to the net tax effects related to stock-based compensation expense, restructuring and other expense, including the tax effects on amortization of intangible assets, and, final remeasurement impact of the U.S. One, Big, Beautiful Bill Act primarily related to the remeasurement of a deferred tax liability previously recorded during 2021, as part of our legal entity structure, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure. | |||||||||||||||||||
* | Not meaningful | |||||||||||||||||||
| ORACLE CORPORATION | ||||||||
FISCAL 2026 YEAR TO DATE FINANCIAL RESULTS | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
($ in millions, except per share data) | ||||||||
Year Ended May 31, | % Increase | |||||||
% Increase | (Decrease) | |||||||
2026 | % of | 2025 | % of | (Decrease) | in Constant | |||
Revenues | Revenues | in US $ | Currency (1) | |||||
REVENUES | ||||||||
Cloud | $ 33,989 | 51 % | $ 24,506 | 43 % | 39 % | 37 % | ||
Software | 24,541 | 36 % | 24,724 | 43 % | (1 %) | (3 %) | ||
Hardware | 3,084 | 5 % | 2,936 | 5 % | 5 % | 3 % | ||
Services | 5,743 | 8 % | 5,233 | 9 % | 10 % | 8 % | ||
Total revenues | 67,357 | 100 % | 57,399 | 100 % | 17 % | 16 % | ||
OPERATING EXPENSES | ||||||||
Cloud and software | 17,597 | 26 % | 11,569 | 20 % | 52 % | 51 % | ||
Hardware | 868 | 1 % | 782 | 1 % | 11 % | 8 % | ||
Services | 4,556 | 7 % | 4,576 | 8 % | 0 % | (2 %) | ||
Sales and marketing | 8,331 | 12 % | 8,651 | 15 % | (4 %) | (5 %) | ||
Research and development | 10,272 | 15 % | 9,860 | 17 % | 4 % | 4 % | ||
General and administrative | 1,618 | 2 % | 1,602 | 3 % | 1 % | 0 % | ||
Amortization of intangible assets | 1,671 | 3 % | 2,307 | 4 % | (28 %) | (28 %) | ||
Restructuring and other | 1,838 | 3 % | 374 | 1 % | 391 % | 384 % | ||
Total operating expenses | 46,751 | 69 % | 39,721 | 69 % | 18 % | 17 % | ||
OPERATING INCOME | 20,606 | 31 % | 17,678 | 31 % | 17 % | 13 % | ||
Interest expense | (4,599) | (7 %) | (3,578) | (6 %) | 29 % | 29 % | ||
Non-operating income, net | 3,547 | 5 % | 60 | 0 % | * | * | ||
INCOME BEFORE INCOME TAXES | 19,554 | 29 % | 14,160 | 25 % | 38 % | 33 % | ||
Provision for income taxes (2) | 2,467 | 4 % | 1,717 | 3 % | 44 % | 39 % | ||
NET INCOME | $ 17,087 | 25 % | $ 12,443 | 22 % | 37 % | 32 % | ||
Preferred stock dividends | 103 | - | ||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 16,984 | $ 12,443 | ||||||
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS: | ||||||||
Basic | $ 5.94 | $ 4.46 | ||||||
Diluted | $ 5.83 | $ 4.34 | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||
Basic | 2,860 | 2,789 | ||||||
Diluted | 2,914 | 2,866 | ||||||
(1) | We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the year ended May 31, 2026 compared with the corresponding prior year period increased our total revenues by 1 percentage point, total operating expenses by 1 percentage point and operating income by 4 percentage points. | |||||||
(2) | Provision for income taxes for the year ended May 31, 2026 includes the impact of the U.S. One, Big, Beautiful Bill Act, which was signed into law on July 4, 2025. | |||||||
* | Not meaningful | |||||||
ORACLE CORPORATION | ||||||||||||||||||||
FISCAL 2026 YEAR TO DATE FINANCIAL RESULTS | ||||||||||||||||||||
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) | ||||||||||||||||||||
($ in millions, except per share data) | ||||||||||||||||||||
Year Ended May 31, | % Increase | % Increase | ||||||||||||||||||
2026 | 2026 | 2025 | 2025 | GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||||||
GAAP | Adj. | Non-GAAP | GAAP | Adj. | Non-GAAP | |||||||||||||||
TOTAL REVENUES | $ 67,357 | $ - | $ 67,357 | $ 57,399 | $ - | $ 57,399 | 17 % | 17 % | 16 % | 16 % | ||||||||||
TOTAL OPERATING EXPENSES | $ 46,751 | $ (8,320) | $ 38,431 | $ 39,721 | $ (7,355) | $ 32,366 | 18 % | 19 % | 17 % | 17 % | ||||||||||
Stock-based compensation (3) | 4,811 | (4,811) | - | 4,674 | (4,674) | - | 3 % | * | 3 % | * | ||||||||||
Amortization of intangible assets (4) | 1,671 | (1,671) | - | 2,307 | (2,307) | - | (28 %) | * | (28 %) | * | ||||||||||
Restructuring and other | 1,838 | (1,838) | - | 374 | (374) | - | 391 % | * | 384 % | * | ||||||||||
OPERATING INCOME | $ 20,606 | $ 8,320 | $ 28,926 | $ 17,678 | $ 7,355 | $ 25,033 | 17 % | 16 % | 13 % | 13 % | ||||||||||
OPERATING MARGIN % | 31 % | 43 % | 31 % | 44 % | (21) bp. | (67) bp. | (68) bp. | (93) bp. | ||||||||||||
INCOME TAX EFFECTS (5) | $ 2,467 | $ 3,070 | $ 5,537 | $ 1,717 | $ 2,514 | $ 4,231 | 44 % | 31 % | 39 % | 28 % | ||||||||||
NET INCOME | $ 17,087 | $ 5,250 | $ 22,337 | $ 12,443 | $ 4,841 | $ 17,284 | 37 % | 29 % | 32 % | 26 % | ||||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 16,984 | $ 5,250 | $ 22,234 | $ 12,443 | $ 4,841 | $ 17,284 | 36 % | 29 % | 32 % | 26 % | ||||||||||
DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 5.83 | $ 7.63 | $ 4.34 | $ 6.03 | 34 % | 27 % | 30 % | 24 % | ||||||||||||
DILUTED WEIGHTED AVERAGE COMMON | 2,914 | - | 2,914 | 2,866 | - | 2,866 | 2 % | 2 % | 2 % | 2 % | ||||||||||
(1) | This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A. | |||||||||||||||||||
(2) | We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. | |||||||||||||||||||
(3) | Stock-based compensation was included in the following GAAP operating expense categories: | |||||||||||||||||||
Year Ended | Year Ended | |||||||||||||||||||
May 31, 2026 | May 31, 2025 | |||||||||||||||||||
GAAP | Adj. | Non-GAAP | GAAP | Adj. | Non-GAAP | |||||||||||||||
Cloud and software | $ 622 | $ (622) | $ - | $ 609 | $ (609) | $ - | ||||||||||||||
Hardware | 27 | (27) | - | 29 | (29) | - | ||||||||||||||
Services | 210 | (210) | - | 202 | (202) | - | ||||||||||||||
Sales and marketing | 759 | (759) | - | 757 | (757) | - | ||||||||||||||
Research and development | 2,805 | (2,805) | - | 2,638 | (2,638) | - | ||||||||||||||
General and administrative | 388 | (388) | - | 439 | (439) | - | ||||||||||||||
Total stock-based compensation | $ 4,811 | $ (4,811) | $ - | $ 4,674 | $ (4,674) | $ - | ||||||||||||||
(4) | Estimated future annual amortization expense related to intangible assets as of May 31, 2026 was as follows: | |||||||||||||||||||
Fiscal 2027 | $ 731 | |||||||||||||||||||
Fiscal 2028 | 694 | |||||||||||||||||||
Fiscal 2029 | 620 | |||||||||||||||||||
Fiscal 2030 | 582 | |||||||||||||||||||
Fiscal 2031 | 377 | |||||||||||||||||||
Thereafter | 225 | |||||||||||||||||||
Total intangible assets, net | $ 3,229 | |||||||||||||||||||
(5) | Income tax effects were calculated reflecting an effective GAAP tax rate of 12.6% and 12.1% in fiscal 2026 and 2025, respectively, and an effective non-GAAP tax rate of 19.9% and 19.7% in fiscal 2026 and 2025, respectively. The difference in our GAAP and non-GAAP tax rates in each of fiscal 2026 and 2025 was primarily due to the net tax effects related to stock-based compensation expense; and restructuring and other expense, including the tax effects on amortization of intangible assets, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure; and, for fiscal 2026, the impact of the U.S. One, Big, Beautiful Bill Act (refer to Appendix A for additional information). | |||||||||||||||||||
* | Not meaningful | |||||||||||||||||||
ORACLE CORPORATION | ||||||
FISCAL 2026 FINANCIAL RESULTS | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
($ in millions) | ||||||
May 31, | May 31, | |||||
2026 | 2025 | |||||
ASSETS | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $ 31,289 | $ 10,786 | ||||
Marketable securities | 605 | 417 | ||||
Trade receivables, net | 10,385 | 8,558 | ||||
Prepaid expenses and other current assets | 4,288 | 4,818 | ||||
Total Current Assets | 46,567 | 24,579 | ||||
Non-Current Assets: | ||||||
Property, plant and equipment, net | 99,957 | 43,522 | ||||
Operating lease right-of-use assets | 29,690 | 13,145 | ||||
Goodwill | 62,261 | 62,207 | ||||
Deferred tax assets | 11,541 | 11,877 | ||||
Other non-current assets | 11,743 | 13,031 | ||||
Total Non-Current Assets | 215,192 | 143,782 | ||||
TOTAL ASSETS | $ 261,759 | $ 168,361 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current Liabilities: | ||||||
Notes payable and other borrowings, current | $ 7,199 | $ 7,271 | ||||
Accounts payable | 10,977 | 5,113 | ||||
Accrued compensation and related benefits | 2,225 | 2,243 | ||||
Deferred revenues | 9,916 | 9,387 | ||||
Other current liabilities | 11,447 | 8,629 | ||||
Total Current Liabilities | 41,764 | 32,643 | ||||
Non-Current Liabilities: | ||||||
Notes payable and other borrowings, non-current | 122,342 | 85,297 | ||||
Income taxes payable | 11,771 | 10,269 | ||||
Operating lease liabilities | 26,648 | 11,536 | ||||
Other non-current liabilities | 16,178 | 7,647 | ||||
Total Non-Current Liabilities | 176,939 | 114,749 | ||||
Stockholders' Equity | 43,056 | 20,969 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 261,759 | $ 168,361 | ||||
ORACLE CORPORATION | |||||
FISCAL 2026 FINANCIAL RESULTS | |||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
($ in millions) | |||||
Year Ended May 31, | |||||
2026 | 2025 | ||||
Cash Flows From Operating Activities: | |||||
Net income | $ 17,087 | $ 12,443 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation | 7,623 | 3,867 | |||
Amortization of intangible assets | 1,671 | 2,307 | |||
Deferred income taxes | (917) | (1,637) | |||
Stock-based compensation | 4,811 | 4,674 | |||
Gains from investments and other, net | (2,433) | 667 | |||
Changes in operating assets and liabilities: | |||||
Increase in trade receivables, net | (2,190) | (653) | |||
Decrease in prepaid expenses and other assets | 2,179 | 266 | |||
Decrease in accounts payable and other liabilities | (240) | (608) | |||
Decrease in income taxes payable | (256) | (659) | |||
Increase in deferred revenues from customer prepayments with significant financing component | 4,592 | - | |||
Increase in other deferred revenues | 50 | 154 | |||
Net cash provided by operating activities | 31,977 | 20,821 | |||
Cash Flows From Investing Activities: | |||||
Purchases of marketable securities and other investments | (2,039) | (1,272) | |||
Proceeds from sales and maturities of marketable securities and other investments | 5,848 | 776 | |||
Capital expenditures | (55,663) | (21,215) | |||
Net cash used for investing activities | (51,854) | (21,711) | |||
Cash Flows From Financing Activities: | |||||
Proceeds from issuances of common stock | 1,449 | 653 | |||
Payments for repurchases of common stock | (95) | (600) | |||
Shares repurchased for tax withholdings upon vesting of restricted stock-based awards | (111) | (900) | |||
Proceeds from issuances of mandatory convertible preferred stock, net of issuance costs | 4,954 | - | |||
Payments of dividends to stockholders | (5,787) | (4,743) | |||
(Repayments of) proceeds from issuances of commercial paper, net | (2,285) | 1,889 | |||
Proceeds from short-term financing related to capital expenditures, net | 3,345 | 1,422 | |||
Proceeds from issuances of senior notes, term loan credit agreements and other borrowings, net of issuance costs | 46,093 | 19,548 | |||
Repayments of senior notes, term loan credit agreements and other borrowings | (6,942) | (15,841) | |||
Other financing activities, net | (337) | (330) | |||
Net cash provided by financing activities | 40,284 | 1,098 | |||
Effect of exchange rate changes on cash and cash equivalents | 96 | 124 | |||
Net increase in cash and cash equivalents | 20,503 | 332 | |||
Cash and cash equivalents at beginning of period | 10,786 | 10,454 | |||
Cash and cash equivalents at end of period | $ 31,289 | $ 10,786 | |||
ORACLE CORPORATION | ||||||||||
FISCAL 2026 FINANCIAL RESULTS | ||||||||||
FREE CASH FLOW - TRAILING FOUR-QUARTERS (1) | ||||||||||
($ in millions) | ||||||||||
Fiscal 2025 | Fiscal 2026 | |||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||
GAAP Operating Cash Flow | $ 19,126 | $ 20,287 | $ 20,745 | $ 20,821 | $ 21,534 | $ 22,296 | $ 23,514 | $ 31,977 | ||
Capital Expenditures | (7,855) | (10,745) | (14,933) | (21,215) | (27,414) | (35,477) | (48,250) | (55,663) | ||
Free Cash Flow | $ 11,271 | $ 9,542 | $ 5,812 | $ (394) | $ (5,880) | $ (13,181) | $ (24,736) | $ (23,686) | ||
Operating Cash Flow % Growth over prior year | 8 % | 19 % | 14 % | 12 % | 13 % | 10 % | 13 % | 54 % | ||
Free Cash Flow % Growth over prior year | 19 % | (6 %) | (53 %) | * | * | * | * | * | ||
GAAP Net Income | $ 10,976 | $ 11,624 | $ 12,160 | $ 12,443 | $ 12,441 | $ 15,425 | $ 16,210 | $ 17,087 | ||
Operating Cash Flow as a % of Net Income | 174 % | 175 % | 171 % | 167 % | 173 % | 145 % | 145 % | 187 % | ||
Free Cash Flow as a % of Net Income | 103 % | 82 % | 48 % | (3 %) | (47 %) | (85 %) | (153 %) | (139 %) | ||
(1) | To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows on a trailing four-quarter basis to analyze cash flow generated from operations. We believe free cash flow is also useful as one of the bases for comparing our performance with our competitors. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from operating activities as a measure of liquidity. | |||||||||
* | Not meaningful | |||||||||
ORACLE CORPORATION | ||||||||||
FISCAL 2026 FINANCIAL RESULTS | ||||||||||
NET CASH OUTLAY FOR CAPITAL EXPENDITURES - TRAILING FOUR-QUARTERS (1) | ||||||||||
($ in millions) | ||||||||||
Fiscal 2025 | Fiscal 2026 | |||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||
Capital Expenditures | $ (7,855) | $ (10,745) | $ (14,933) | $ (21,215) | $ (27,414) | $ (35,477) | $ (48,250) | $ (55,663) | ||
Less: Other Short-Term Financing Cash Flow Related | - | - | - | 1,422 | 3,380 | 2,620 | 4,089 | 3,345 | ||
Less: Customer Prepayments with Significant Financing | - | - | - | - | - | - | - | 4,592 | ||
Net Cash Outlay for Capital Expenditures | $ (7,855) | $ (10,745) | $ (14,933) | $ (19,793) | $ (24,034) | $ (32,857) | $ (44,161) | $ (47,726) | ||
(1) | To supplement our cash flow for capital expenditures presented in our statements of cash flows in accordance with GAAP, we provide net cash outlay for capital expenditures on a trailing four-quarter basis. Net cash outlay for capital expenditures is defined as capital expenditures, less (1) other short-term financing cash flow related to capital expenditures and (2) customer prepayments with significant financing component for capital expenditures. We believe this supplemental presentation of net cash outlay for capital expenditures is useful because it provides additional information about the cash requirement for funding of our capital expenditures and is used by management when forecasting expected capital expenditures. | |||||||||
(2) | Represents other short-term financing cash flows related to capital expenditures as reported in cash flows from financing activities in our statements of cash flows. We use third-party manufacturing partners to produce most of our cloud infrastructure assets and in some cases supply them with components purchased directly from suppliers. Certain of these arrangements result in a portion of the cash received from and paid to third-party manufacturers presented within financing activities in our statements of cash flows. | |||||||||
(3) | Represents customer prepayments with significant financing component as reported in cash flows from operating activities in our cash flow statements presented in accordance with GAAP. | |||||||||
ORACLE CORPORATION | ||||||||||||||
FISCAL 2026 FINANCIAL RESULTS | ||||||||||||||
SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1) | ||||||||||||||
($ in millions) | ||||||||||||||
Fiscal 2025 | Fiscal 2026 | |||||||||||||
Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | |||||
REVENUES BY OFFERINGS | ||||||||||||||
Cloud | $ 5,623 | $ 5,937 | $ 6,210 | $ 6,737 | $ 24,506 | $ 7,186 | $ 7,977 | $ 8,914 | $ 9,913 | $ 33,989 | ||||
Software license | 870 | 1,195 | 1,129 | 2,007 | 5,201 | 766 | 939 | 1,150 | 1,881 | 4,737 | ||||
Software support | 4,896 | 4,869 | 4,797 | 4,961 | 19,523 | 4,955 | 4,938 | 4,969 | 4,943 | 19,804 | ||||
Software | 5,766 | 6,064 | 5,926 | 6,968 | 24,724 | 5,721 | 5,877 | 6,119 | 6,824 | 24,541 | ||||
Hardware | 655 | 728 | 703 | 850 | 2,936 | 670 | 776 | 714 | 924 | 3,084 | ||||
Services | 1,263 | 1,330 | 1,291 | 1,348 | 5,233 | 1,349 | 1,428 | 1,443 | 1,523 | 5,743 | ||||
Total revenues | $ 13,307 | $ 14,059 | $ 14,130 | $ 15,903 | $ 57,399 | $ 14,926 | $ 16,058 | $ 17,190 | $ 19,184 | $ 67,357 | ||||
AS REPORTED REVENUE GROWTH RATES | ||||||||||||||
Cloud | 21 % | 24 % | 23 % | 27 % | 24 % | 28 % | 34 % | 44 % | 47 % | 39 % | ||||
Software license | 7 % | 1 % | (10 %) | 9 % | 2 % | (12 %) | (21 %) | 2 % | (6 %) | (9 %) | ||||
Software support | 0 % | 0 % | (2 %) | 1 % | 0 % | 1 % | 1 % | 4 % | 0 % | 1 % | ||||
Software | 1 % | 0 % | (4 %) | 3 % | 0 % | (1 %) | (3 %) | 3 % | (2 %) | (1 %) | ||||
Hardware | (8 %) | (4 %) | (7 %) | 1 % | (4 %) | 2 % | 7 % | 2 % | 9 % | 5 % | ||||
Services | (9 %) | (3 %) | (1 %) | (2 %) | (4 %) | 7 % | 7 % | 12 % | 13 % | 10 % | ||||
Total revenues | 7 % | 9 % | 6 % | 11 % | 8 % | 12 % | 14 % | 22 % | 21 % | 17 % | ||||
CONSTANT CURRENCY REVENUE GROWTH RATES (2) | ||||||||||||||
Cloud | 22 % | 24 % | 25 % | 27 % | 24 % | 27 % | 33 % | 41 % | 46 % | 37 % | ||||
Software license | 8 % | 3 % | (8 %) | 8 % | 3 % | (13 %) | (23 %) | (2 %) | (6 %) | (10 %) | ||||
Software support | 0 % | 0 % | 0 % | 0 % | 0 % | (1 %) | 0 % | 0 % | (1 %) | (1 %) | ||||
Software | 1 % | 0 % | (2 %) | 2 % | 1 % | (2 %) | (5 %) | (1 %) | (3 %) | (3 %) | ||||
Hardware | (8 %) | (3 %) | (5 %) | 0 % | (4 %) | 1 % | 5 % | (2 %) | 7 % | 3 % | ||||
Services | (8 %) | (3 %) | 1 % | (2 %) | (3 %) | 5 % | 6 % | 8 % | 12 % | 8 % | ||||
Total revenues | 8 % | 9 % | 8 % | 11 % | 9 % | 11 % | 13 % | 18 % | 20 % | 16 % | ||||
CLOUD REVENUES BY OFFERINGS | ||||||||||||||
Cloud applications | $ 3,469 | $ 3,503 | $ 3,558 | $ 3,742 | $ 14,272 | $ 3,839 | $ 3,898 | $ 4,026 | $ 4,126 | $ 15,888 | ||||
Cloud infrastructure | 2,154 | 2,434 | 2,652 | 2,995 | 10,234 | 3,347 | 4,079 | 4,888 | 5,787 | 18,101 | ||||
Total cloud revenues | $ 5,623 | $ 5,937 | $ 6,210 | $ 6,737 | $ 24,506 | $ 7,186 | $ 7,977 | $ 8,914 | $ 9,913 | $ 33,989 | ||||
AS REPORTED REVENUE GROWTH RATES | ||||||||||||||
Cloud applications | 10 % | 10 % | 9 % | 12 % | 10 % | 11 % | 11 % | 13 % | 10 % | 11 % | ||||
Cloud infrastructure | 45 % | 52 % | 49 % | 52 % | 50 % | 55 % | 68 % | 84 % | 93 % | 77 % | ||||
Total cloud revenues | 21 % | 24 % | 23 % | 27 % | 24 % | 28 % | 34 % | 44 % | 47 % | 39 % | ||||
CONSTANT CURRENCY REVENUE GROWTH RATES (2) | ||||||||||||||
Cloud applications | 10 % | 10 % | 10 % | 11 % | 10 % | 10 % | 11 % | 11 % | 9 % | 10 % | ||||
Cloud infrastructure | 46 % | 52 % | 51 % | 52 % | 51 % | 54 % | 66 % | 81 % | 92 % | 75 % | ||||
Total cloud revenues | 22 % | 24 % | 25 % | 27 % | 24 % | 27 % | 33 % | 41 % | 46 % | 37 % | ||||
GEOGRAPHIC REVENUES | ||||||||||||||
Americas | $ 8,372 | $ 8,933 | $ 9,000 | $ 10,034 | $ 36,339 | $ 9,662 | $ 10,467 | $ 11,361 | $ 12,988 | $ 44,478 | ||||
Europe/Middle East/Africa | 3,228 | 3,381 | 3,421 | 3,996 | 14,025 | 3,481 | 3,760 | 3,964 | 4,093 | 15,297 | ||||
Asia Pacific | 1,707 | 1,745 | 1,709 | 1,873 | 7,035 | 1,783 | 1,831 | 1,865 | 2,103 | 7,582 | ||||
Total revenues | $ 13,307 | $ 14,059 | $ 14,130 | $ 15,903 | $ 57,399 | $ 14,926 | $ 16,058 | $ 17,190 | $ 19,184 | $ 67,357 | ||||
(1) The sum of the quarterly information presented may vary from the year-to-date information presented due to rounding. | ||||||||||||||
(2) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency | ||||||||||||||
APPENDIX A
ORACLE CORPORATION
Q4 FISCAL 2026 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain significant expenses including stock-based compensation, expenses related to acquisitions, restructuring and certain other operating expenses, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects related to each of the below items except for the impact of the U.S. One, Big, Beautiful Bill Act:
SOURCE Oracle
| 34 min | |
| 35 min | |
| 1 hour | |
| 1 hour | |
| 1 hour | |
| 1 hour | |
| 1 hour | |
| 1 hour | |
| 1 hour | |
| 1 hour | |
| 2 hours | |
| 2 hours | |
| 3 hours | |
| 4 hours | |
| 4 hours |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, alerts, and much more.
Learn more about Finviz Elite