Oracle Corporation, an American multinational computer technology company, was founded in 1977 by Larry Ellison, Bob Miner, and Ed Oates. Headquartered in Austin, Texas, Oracle is renowned for its innovative database software and technology. The company offers a comprehensive range of enterprise software products and cloud solutions, including Oracle Database, ERP, HCM, and CRM applications. Oracle’s pioneering efforts in autonomous databases and cloud computing have positioned it as a leader in the tech industry. With over 160,000 employees worldwide and operations in more than 150 countries, Oracle continues to drive digital transformation and support businesses globally.
Oracle Fiscal Q2 2026
Oracle (ORCL) reported its fiscal 2026 Q2 results, showing strong growth in several areas. Total Remaining Performance Obligations jumped 438% year over year to $523 billion. Quarterly revenue rose 14% to $16.1 billion, with cloud revenue up 34% to $8.0 billion. Software revenue declined slightly, falling 3% to $5.9 billion. Overall, revenue came in below expectations, but earnings were stronger than forecast. GAAP earnings per share rose sharply to $2.10, up 91%, and non‑GAAP earnings per share increased to $2.26, up 54%.
Also, GAAP operating income was $4.7 billion, while non‑GAAP operating income was up 10% from last year. GAAP net income was $6.1 billion, and non‑GAAP net income was $6.6 billion, up 57% year over year.
Short‑term deferred revenue totaled $9.9 billion, and Oracle generated $22.3 billion in operating cash flow over the past year, up 10%.
Key Highlights:
- Q2 Remaining Performance Obligations: $523 billion, up 438% year over year
- Q2 GAAP EPS: $2.10, up 91%
- Q2 Non‑GAAP EPS: $2.26, up 54%
- Q2 Total Revenue: $16.1 billion, up 14% in USD and 13% in constant currency
- Q2 Cloud Revenue (IaaS + SaaS): $8.0 billion, up 34% in USD and 33% in constant currency
- Q2 Cloud Infrastructure (IaaS): $4.1 billion, up 68% in USD and 66% in constant currency
- Q2 Cloud Applications (SaaS): $3.9 billion, up 11% in both USD and constant currency
- Q2 Fusion Cloud ERP: $1.1 billion, up 18% in USD and 17% in constant currency
- Q2 NetSuite Cloud ERP: $1.0 billion, up 13% in both USD and constant currency
Board Statements
Oracle Principal Financial Officer Doug Kehring said that Remaining Performance Obligations rose by $68 billion in Q2, up 15%, driven by new commitments from Meta, NVIDIA, and others. He noted that GAAP earnings per share increased 91% to $2.10 and non‑GAAP earnings per share rose 54% to $2.26, with both metrics benefiting from a $2.7 billion pre‑tax gain from the sale of Oracle’s interest in Ampere.
Oracle Chairman and CTO Larry Ellison explained that the company sold its Ampere stake because it no longer views designing and manufacturing its own chips as strategic for its cloud datacenters. Ellison emphasized Oracle’s shift to a policy of chip neutrality, working closely with all CPU and GPU suppliers to stay agile amid rapid changes in AI hardware.
Oracle CEO Clay Magouyrk highlighted the company’s strength in building high‑performance, cost‑efficient, and highly automated cloud datacenters. He noted that Oracle now has more than 211 live and planned regions worldwide. This is more than any competitor and is over halfway through building 72 Oracle Multicloud data centers embedded across the Amazon, Google, and Microsoft clouds. Magouyrk said this cloud‑neutral strategy is paying off, with multicloud database revenue surging 817% in Q2.
Oracle CEO Mike Sicilia pointed to use cases such as automated loan origination, risk quantification, medical diagnostics, and healthcare reimbursement. Sicilia noted that all the top five AI models run on Oracle Cloud, giving the company significant advantages over application competitors.
Impact on the Stock Market
Oracle shares fell 12% in early Thursday trading after the company reported mixed fiscal Q2 results. Adjusted EPS came in strong, beating expectations, but revenue slightly missed expectations.
Cloud revenue rose 36%, with infrastructure (IaaS) up 66% and applications (SaaS) up 11%. Fusion Cloud ERP grew 18%, and NetSuite ERP continued steady growth.
The standout metric was Oracle’s Remaining Performance Obligations, which surged 438% to $523B, driven by major new AI‑related deals with Meta and NVIDIA.
Despite these wins, investors focused on the revenue miss and concerns about Oracle’s reliance on a small number of large AI customers. Analysts had already warned of a tough setup heading into earnings, and the results did little to ease fears about concentration risk or the durability of AI demand.
Oracle reaffirmed Q3 EPS guidance of $1.70–$1.74 and projected 19–21% revenue growth, above expectations. Still, the stock remains 35% below its September highs, even though it is up 33% year‑to‑date.
