Oracle Corporation 8-K

PositiveEarningsGuidance raised

AI infrastructure demand drove cloud growth, while investment in the cloud buildout deepened negative free cash flow.

Filed 2026-06-10 16:13 ET

Summary

Q4 and FY2026 results with Q1 and FY2027 guidance. Oracle reported record revenue and earnings, led by cloud growth, particularly cloud infrastructure. FY2027 revenue guidance was reaffirmed and non-GAAP EPS guidance was raised. The board also declared quarterly cash dividends on common and mandatory convertible preferred stock.

Key Figures

Metric Q4 2026 Q4 2025 Y/Y
Revenue $19.2B $15.9B 21%
GAAP operating income $6.13B $5.11B 20%
Non-GAAP operating income $8.59B $7.04B 22%
GAAP net income available to common shareholders $4.22B $3.43B 23%
Non-GAAP net income available to common shareholders $6.15B $4.88B 26%
GAAP diluted EPS $1.45 $1.19 21%
Non-GAAP diluted EPS $2.11 $1.70 24%
Metric FY2026 FY2025 Y/Y
Revenue $67.4B $57.4B 17%
GAAP operating income $20.6B $17.7B 17%
Non-GAAP operating income $28.9B $25.0B 16%
GAAP net income available to common shareholders $17.0B $12.4B 36%
Non-GAAP net income available to common shareholders $22.2B $17.3B 29%
GAAP diluted EPS $5.83 $4.34 34%
Non-GAAP diluted EPS $7.63 $6.03 27%
Operating cash flow $32.0B $20.8B 54%
Free cash flow $(23.7)B $(0.394)B n/m
  • Cloud revenue grew 47% to $9.91B in Q4: infrastructure revenue rose 93% to $5.79B and cloud applications revenue rose 10% to $4.13B. FY2026 cloud revenue increased 39% to $34.0B. Management cited AI infrastructure demand; FY2026 free cash flow was negative amid cloud infrastructure investment.
  • Remaining performance obligations reached $638B, up 363% Y/Y and $85B from Q3’s $553B. Prepaid and customer-supplied hardware for large AI contracts totaled $75B.
  • FY2026 capital expenditures were $55.7B. Cash was $31.3B and notes payable and other borrowings totaled $129.5B at 5/31/2026. Oracle raised $43B in debt financing and $5B in equity financing during FY2026; it expects ≈$40B of combined debt and equity financing in FY2027, including the previously announced $20B at-the-market equity issuance, and does not expect additional debt issuance in calendar 2026. Quarterly dividends: $0.50 per common share, payable 7/24/2026 to holders of record 7/10/2026; $1,625 per mandatory convertible preferred share, payable 7/15/2026 to holders of record 7/1/2026.

Guidance

Metric Period Guidance Prior Direction
Total revenue growth, USD and constant currency Q1 FY2027 27%-29% — —
Total cloud revenue growth, constant currency; USD Q1 FY2027 57%-63%; 58%-64% — —
Non-GAAP diluted EPS, constant currency; USD Q1 FY2027 $1.71-$1.75, growth 16%-19%; $1.72-$1.76, growth 17%-20% — —
Total revenue FY2027 $90B $90B Reaffirmed
Non-GAAP EPS FY2027 $8.05; 18% growth after adjusting for FY2026 sales of the Ampere chip business and Bloom Energy warrants — Raised

Investor Takeaways

  • Q1 FY2027 revenue, cloud growth and non-GAAP EPS versus the guided ranges will test whether current growth momentum continues.
  • FY2027 revenue and non-GAAP EPS execution, alongside the planned capital funding for cloud infrastructure, will show how Oracle converts AI demand and RPO into results.

The summary is written by an AI model reading the filing.

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