Oracle (ORCL) Q4 & FY2026 Earnings
Oracle Corporation (NYSE: ORCL) reported record Q4 and full fiscal year 2026 results on June 10, 2026, delivering a quarter that exceeded expectations across every major metric and fundamentally changed the market’s understanding of what Oracle has become. This is no longer a legacy database company in a slow transition to the cloud. This is one of the fastest-growing cloud infrastructure businesses on the planet, with a $638 billion remaining performance obligation backlog that is the largest contracted revenue pipeline of any technology company outside of Microsoft. Here is everything you need to know.
The Headline Numbers
Oracle reported Q4 FY2026 total revenues of $19.2 billion, up 21% year-over-year in USD and 20% in constant currency — a record quarter. Cloud revenues (IaaS + SaaS combined) hit $9.9 billion, up 47% year-over-year, representing 52% of total revenue for the first time in company history. Cloud has crossed the majority threshold at Oracle. Q4 GAAP EPS was $1.45 (up 21%) and non-GAAP EPS was $2.11 (up 24%). GAAP net income reached $4.2 billion, up 23%.
For the full fiscal year 2026, Oracle posted total revenues of $67.4 billion, up 17% — a new annual record. Full-year cloud revenues were $34.0 billion, up 39%. FY2026 GAAP EPS grew 34% to $5.83, and non-GAAP EPS grew 27% to $7.63. Operating cash flow hit a record $32.0 billion, up 54% year-over-year.
The Number That Changes Everything: 93% IaaS Growth
The single most important number in Oracle’s earnings report is not the headline revenue. It is Cloud Infrastructure (IaaS) revenue of $5.8 billion in Q4, up 93% year-over-year. Nearly doubling in a single quarter is an extraordinary growth rate for a business at this scale, and it places Oracle in a different category than the market has historically assigned it. For context: AWS grew 28% in its most recent quarter. Azure grew 40%. Google Cloud grew 63%. Oracle’s IaaS business grew 93% — faster than any of the hyperscalers it is competing against for AI workloads. For the full fiscal year, IaaS revenue was $18.1 billion, up 77%.
The driver is AI. Oracle has emerged as the infrastructure backbone for some of the most compute-intensive AI training and inferencing workloads in the world. Its multi-cloud, multi-region architecture, combined with its proprietary RDMA networking fabric and clean energy data center program, has made OCI (Oracle Cloud Infrastructure) the preferred platform for customers who need massive GPU clusters at scale outside of the traditional hyperscaler ecosystem. The company noted that large-scale AI contracts — where customers either prepay Oracle for GPU purchasing or supply their own GPUs to Oracle’s infrastructure — now total $75 billion in prepaid and customer-supplied hardware commitments. This dramatically reduces the capital Oracle must raise to continue building out AI data centers.
RPO: $638 Billion — The Most Important Metric in Cloud
Oracle’s Remaining Performance Obligations — contracted future revenue not yet recognized — ended Q4 at $638 billion, up 363% year-over-year and up $85 billion sequentially from Q3. To put that in perspective: Oracle added more contracted revenue in a single quarter than the entire annual revenue of most S&P 500 companies. The RPO trajectory has been extraordinary: Q3 ended at $553 billion, and Q4 added $85 billion on top of that. The company noted that most of the RPO increase in both Q3 and Q4 came from large-scale AI contracts. This backlog provides Oracle with years of contracted revenue visibility and is the single most powerful indicator of where the business is heading.
The Oracle Multicloud AI Database: Fastest-Growing Business Ever
CEO Larry Ellison highlighted one metric that stands out even within a record quarter: the Oracle Multicloud AI Database grew 404% in Q4 — the fastest growth rate of any business in Oracle’s history. The Multicloud AI Database allows enterprise customers to run Oracle’s autonomous database across AWS, Azure, and Google Cloud, positioning Oracle’s data layer as the connective tissue between hyperscaler environments. In an era where enterprise data is distributed across multiple clouds and AI models need to access all of it, Oracle’s ability to sit on top of every major cloud as a neutral data layer is a structural advantage that is now showing up in the numbers at scale.
Oracle Health: The Sleeper Catalyst
Ellison devoted significant commentary to Oracle Health, the company’s healthcare IT division built around the Cerner acquisition. Oracle is developing a completely new AI version of the Cerner hospital and clinic patient care management system — a product that will replace the existing Cerner platform with an AI-native architecture. Management expects this new system to push Oracle Health’s growth rate to double digits in fiscal year 2027. Ellison’s comments went further: he described AI as being “about to completely revolutionize healthcare,” with AI molecular design models expected to accelerate drug development and Oracle’s new AI clinical trial system designed to help regulators rapidly review and approve trial results. Healthcare is a $4+ trillion industry. If Oracle Health’s AI push materially accelerates growth from the current low-single-digit rate to double digits, it becomes a meaningful contributor to the FY27 revenue target.
Q1 FY2027 and Full-Year Guidance
Oracle’s guidance for Q1 FY2027 was aggressive. Total revenues are expected to grow 27–29% year-over-year. Total cloud revenue is expected to grow 57–63% in constant currency — an acceleration from Q4’s 46% constant currency cloud growth. Non-GAAP EPS guidance for Q1 is $1.71–1.76. For the full fiscal year 2027, Oracle confirmed its prior guidance of $90 billion in total revenue and raised non-GAAP EPS guidance to $8.05 (18% growth, adjusted for one-time items). The $90 billion FY27 revenue target would represent approximately 34% growth from FY26’s $67.4 billion — an extraordinary growth rate for a company of Oracle’s size and history.
Capital Allocation: Massive Infrastructure Investment
Oracle’s free cash flow was negative $23.7 billion for FY2026 — a stark contrast to its record $32.0 billion operating cash flow — because the company is spending aggressively on data center buildout. In FY2026, Oracle raised $43 billion in debt financing and $5 billion in equity financing to fund this expansion. For FY2027, Oracle expects to raise approximately $40 billion through a combination of debt and equity, including a previously announced $20 billion at-the-market equity issuance. Oracle does not expect to issue additional debt in calendar year 2026. The board declared a quarterly dividend of $0.50 per share, payable July 24, 2026. For background on Oracle’s executive team including the recently hired CFO, see our earlier coverage: Oracle hires new CFO with $950K salary as thousands face layoffs.
What This Means in the Context of the AI Infrastructure Race
Oracle’s Q4 results need to be read alongside the broader AI infrastructure supercycle that is reshaping the technology sector. NVIDIA reported $81.6 billion in Q1 FY2027 revenue with a $91 billion Q2 guide — and Oracle is one of NVIDIA’s most significant infrastructure partners, receiving Vera CPU deliveries and deploying GPU clusters at a scale that few organizations can match. See our full breakdown: NVIDIA Q1 FY2027 Earnings: $81.6B Revenue, $91B Q2 Guide.
CoreWeave — one of the AI cloud infrastructure companies competing for the same AI workloads as Oracle Cloud Infrastructure — reported a $99.4 billion backlog in its most recent quarter. Oracle’s $638 billion RPO dwarfs that by a factor of six, suggesting that at enterprise scale, Oracle is winning the AI infrastructure contract race by a wider margin than the market has appreciated. See our analysis: CRWV — CoreWeave Stock Fact Sheet.
Microsoft, which competes directly with OCI for enterprise cloud workloads, reported Azure growing 40% — impressive but less than half of Oracle IaaS’s 93% growth rate this quarter. For the Microsoft comparison: MSFT — Microsoft Stock Fact Sheet. Google Cloud grew 63% — also strong, but Oracle is outpacing it in the AI infrastructure segment: GOOGL — Alphabet Stock Fact Sheet.
For the full Oracle financial data, analyst targets, and bull/bear breakdown, see our updated fact sheet: ORCL — Oracle Stock Fact Sheet.
Related Coverage
- ORCL — Oracle Stock Fact Sheet
- NVIDIA Q1 FY2027 Earnings: $81.6B Revenue, $91B Q2 Guide
- MSFT — Microsoft Stock Fact Sheet
- GOOGL — Alphabet Stock Fact Sheet
- CRWV — CoreWeave Stock Fact Sheet
- AMZN — Amazon Stock Fact Sheet
- Oracle hires new CFO with $950K salary as thousands face layoffs
- Vera Arrives: NVIDIA’s First CPU Built for Agents Lands at Top AI Labs
This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.
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