— Q2 Remaining Performance Obligations $523 billion, up 438% in USD
— Q2 GAAP Earnings per Share up 91% to $2.10, Non-GAAP Earnings per Share up 54% to $2.26
— Q2 Total Revenue $16.1 billion, up 14% in USD and up 13% in constant currency
— Q2 Cloud Revenue (IaaS plus SaaS) $8.0 billion, up 34% in USD and up 33% in constant currency
— Q2 Cloud Infrastructure (IaaS) Revenue $4.1 billion, up 68% in USD and up 66% in constant currency
— Q2 Cloud Application (SaaS) Revenue $3.9 billion, up 11% in both USD and constant currency
— Q2 Fusion Cloud ERP (SaaS) Revenue $1.1 billion, up 18% in USD and up 17% in constant currency
— Q2 NetSuite Cloud ERP (SaaS) Revenue $1.0 billion, up 13% in both USD and constant currency
Oracle Corporation (NYSE: ORCL) today announced fiscal 2026 Q2 results. Total Remaining Performance Obligations were up 438% year-over-year in USD to $523 billion. Total quarterly revenues were up 14% in USD, and up 13% in constant currency to $16.1 billion. Cloud revenues were up 34% in USD, and up 33% in constant currency to $8.0 billion. Software revenues were down 3% in USD, and down 5% in constant currency to $5.9 billion.
Q2 GAAP operating income was $4.7 billion. Non-GAAP operating income was $6.7 billion, up 10% year-over-year in USD and up 8% in constant currency. GAAP net income was $6.1 billion. Non-GAAP net income was $6.6 billion, up 57% in USD and up 54% in constant currency. Q2 GAAP earnings per share was $2.10, up 91% in USD and up 86% in constant currency. Non-GAAP earnings per share was $2.26, up 54% in USD and up 51% in constant currency.
Short-term deferred revenues were $9.9 billion. Over the last twelve months, operating cash flow was $22.3 billion, up 10% in USD.
“Remaining Performance Obligations (RPO) increased by $68 billion in Q2-up 15% sequentially to $523 billion-highlighted by new commitments from Meta, NVIDIA, and others,” said Oracle Principal Financial Officer, Doug Kehring. “Q2 GAAP earnings per share was up 91% to $2.10, and non-GAAP earnings per share was up 54% to $2.26. Our GAAP and non-GAAP earnings per share were both positively impacted by a $2.7 billion pre-tax gain in the sale of Oracle's interest in our Ampere chip company.”
“Oracle sold Ampere because we no longer think it is strategic for us to continue designing, manufacturing and using our own chips in our cloud datacenters,” said Oracle Chairman and CTO, Larry Ellison. “We are now committed to a policy of chip neutrality where we work closely with all our CPU and GPU suppliers. Of course, we will continue to buy the latest GPUs from NVIDIA, but we need to be prepared and able to deploy whatever chips our customers want to buy. There are going to be a lot of changes in AI technology over the next few years and we must remain agile in response to those changes.”
“Oracle is very good at building and running high-performance and cost-efficient cloud datacenters,” said Oracle CEO, Clay Magouyrk. “For years Oracle has been investing in AI and building autonomous cloud software. Oracle's Autonomous Database and Autonomous Linux have been key to reducing human labor and human error in our datacenters. Because our datacenters are highly automated, we can build and run more of them. Oracle has over 211 live and planned regions worldwide-more than any of our cloud competitors. We are more than halfway through building 72 Oracle Multicloud datacenters to be embedded throughout the Amazon, Google and Microsoft clouds. We are committed to Cloud Neutrality because we believe that our customers should be able to run their Oracle databases in any cloud they choose. That strategy is definitely paying off. Our Multicloud database business is our fastest growing business-up 817% in Q2.”
“AI Training and selling AI Models are very big businesses,” said Oracle CEO, Mike Sicilia. “But we think there is an even larger opportunity-embedding AI in a variety of different products. Oracle is in a unique position to embed AI in all three layers of our software products: our Cloud Datacenter software, our Autonomous Database and Analytic software, and our Applications software. All three of these Oracle software businesses are already big-AI will make them all better and bigger. AI allows us to automate complex multistep processes that were impossible to automate before AI. AI is enabling us to automate loan origination and risk quantification for banks and their customers. AI is enabling us to help doctors diagnose and care for their patients and manage the reimbursement process between healthcare providers and payers. All of the top five AI Models are in the Oracle Cloud. We have huge advantages over our applications competitors.”
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 January 9, 2026, with a payment date of January 23, 2026.
— A sample list of customers which purchased Oracle Cloud services during the quarter will be available at www.oracle.com/customers/earnings/.
— A list of recent technical innovations and announcements is available at www.oracle.com/news/.
— To learn what industry analysts have been saying about Oracle's products and services see www.oracle.com/corporate/analyst-reports/.
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 atwww.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 our plans to maintain chip neutrality, our ability to build and run high-performance and cost-efficient cloud datacenters and increase buildout of additional datacenters, the growth opportunity provided by embedding AI in a variety of our product and the benefits of AI generally 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 December 10, 2025. Oracle undertakes no duty to update any statement in light of new information or future events.
ORACLE CORPORATIONQ2 FISCAL 2026 FINANCIAL RESULTSCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS($ in millions, except per share data) Three Months Ended November 30, % Increase % Increase (Decrease) 2025 % of 2024 % of (Decrease) in Constant Revenues Revenues in US $ Currency (1)REVENUES Cloud $ 7,977 50% $ 5,937 42% 34% 33% Software 5,877 36% 6,064 44% (3%) (5%) Hardware 776 5% 728 5% 7% 5% Services 1,428 9% 1,330 9% 7% 6% Total revenues 16,058 100% 14,059 100% 14% 13%OPERATING EXPENSES Cloud and software 3,990 25% 2,746 19% 45% 45% Hardware 215 1% 172 1% 25% 23% Services 1,169 7% 1,167 8% 0% (1%) Sales and marketing 2,149 13% 2,190 16% (2%) (3%) Research and development 2,561 16% 2,471 18% 4% 4% General and administrative 409 3% 387 3% 6% 5% Amortization of intangible assets 407 3% 591 4% (31%) (31%) Acquisition related and other 21 0% 31 0% (33%) (35%) Restructuring 406 3% 84 1% 387% 378% Total operating expenses 11,327 71% 9,839 70% 15% 14%OPERATING INCOME 4,731 29% 4,220 30% 12% 9% Interest expense (1,057) (7%) (866) (6%) 22% 22% Non-operating income, net 2,668 17% 36 0% * *INCOME BEFORE INCOME TAXES 6,342 39% 3,390 24% 87% 82% Provision for income taxes 207 1% 239 2% (14%) (16%)NET INCOME $ 6,135 38% $ 3,151 22% 95% 89%EARNINGS PER SHARE: Basic $ 2.14 $ 1.13 Diluted $ 2.10 $ 1.10WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 2,864 2,790 Diluted 2,922 2,869(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 November 30, 2025 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 3 percentage points.* Not meaningful
ORACLE CORPORATIONQ2 FISCAL 2026 FINANCIAL RESULTSRECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)($ in millions, except per share data) Three Months Ended November 30, % Increase % Increase (Decrease) in (Decrease) Constant Currency (2) in US $ 2025 2025 2024 2024 GAAP Non-GAAP GAAP Non-GAAP GAAP Adj. Non-GAAP GAAP Adj. Non-GAAPTOTAL REVENUES $ 16,058 $ – $ 16,058 $ 14,059 $ – $ 14,059 14% 14% 13% 13%TOTAL OPERATING EXPENSES $ 11,327 $ (1,990) $ 9,337 $ 9,839 $ (1,876) $ 7,963 15% 17% 14% 16% Stock-based compensation (3) 1,156 (1,156) – 1,170 (1,170) – (1%) * (1%) * Amortization of intangible assets (4) 407 (407) – 591 (591) – (31%) * (31%) * Acquisition related and other 21 (21) – 31 (31) – (33%) * (35%) * Restructuring 406 (406) – 84 (84) – 387% * 378% *OPERATING INCOME $ 4,731 $ 1,990 $ 6,721 $ 4,220 $ 1,876 $ 6,096 12% 10% 9% 8%OPERATING MARGIN % 29% 42% 30% 43% (56) bp. (150) bp. (92) bp. (171) bp.INCOME TAX EFFECTS (5) $ 207 $ 1,527 $ 1,734 $ 239 $ 820 $ 1,059 (14%) 64% (16%) 61%NET INCOME $ 6,135 $ 463 $ 6,598 $ 3,151 $ 1,056 $ 4,207 95% 57% 89% 54%DILUTED EARNINGS PER SHARE $ 2.10 $ 2.26 $ 1.10 $ 1.47 91% 54% 86% 51%DILUTED WEIGHTED AVERAGE COMMON 2,922 – 2,922 2,869 – 2,869 2% 2% 2% 2%SHARES OUTSTANDING(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 November 30, 2025 November 30, 2024 GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP Cloud and software $ 151 $ (151) $ – $ 158 $ (158) $ – Hardware 7 (7) – 8 (8) – Services 51 (51) – 53 (53) – Sales and marketing 185 (185) – 195 (195) – Research and development 668 (668) – 657 (657) – General and administrative 94 (94) – 99 (99) – Total stock-based compensation $ 1,156 $ (1,156) $ – $ 1,170 $ (1,170) $ -(4) Estimated future annual amortization expense related to intangible assets as of November 30, 2025 was as follows: Remainder of fiscal 2026 $ 812 Fiscal 2027 672 Fiscal 2028 635 Fiscal 2029 561 Fiscal 2030 522 Fiscal 2031 332 Thereafter 226 Total intangible assets, net $ 3,760(5) Income tax effects were calculated reflecting an effective GAAP tax rate of 3.3% and 7.1% in the second quarter of fiscal 2026 and 2025, respectively, and an effective non-GAAP tax rate of 20.8% and 20.1% in the second quarter of fiscal 2026 and 2025, respectively. The difference in our GAAP and non-GAAP tax rates in each of the second quarters of fiscal 2026 and 2025 was primarily due to the net tax effects related to stock-based compensation expense; acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense, 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 CORPORATIONQ2 FISCAL 2026 YEAR TO DATE FINANCIAL RESULTSCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS($ in millions, except per share data) Six Months Ended November 30, % Increase % Increase (Decrease) 2025 % of 2024 % of (Decrease) in Constant Revenues Revenues in US $ Currency (1)REVENUES Cloud $ 15,162 49% $ 11,559 42% 31% 30% Software 11,598 37% 11,830 44% (2%) (4%) Hardware 1,446 5% 1,383 5% 5% 3% Services 2,777 9% 2,594 9% 7% 6% Total revenues 30,983 100% 27,366 100% 13% 12%OPERATING EXPENSES Cloud and software 7,597 24% 5,344 20% 42% 42% Hardware 393 1% 333 1% 18% 16% Services 2,268 7% 2,314 8% (2%) (3%) Sales and marketing 4,211 14% 4,226 15% 0% (2%) Research and development 5,051 16% 4,777 18% 6% 6% General and administrative 786 3% 745 3% 5% 5% Amortization of intangible assets 826 3% 1,215 4% (32%) (32%) Acquisition related and other 35 0% 44 0% (21%) (24%) Restructuring 808 3% 157 1% 415% 406% Total operating expenses 21,975 71% 19,155 70% 15% 14%OPERATING INCOME 9,008 29% 8,211 30% 10% 7% Interest expense (1,980) (7%) (1,708) (6%) 16% 16% Non-operating income, net 2,741 9% 57 0% * *INCOME BEFORE INCOME TAXES 9,769 31% 6,560 24% 49% 44% Provision for income taxes (2) 707 2% 480 2% 47% 43%NET INCOME $ 9,062 29% $ 6,080 22% 49% 45%EARNINGS PER SHARE: Basic $ 3.19 $ 2.19 Diluted $ 3.11 $ 2.13WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 2,845 2,775 Diluted 2,916 2,860(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 six months ended November 30, 2025 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 3 percentage points.(2) Provision for income taxes for the six months ended November 30, 2025 includes the impact of the U.S. One, Big, Beautiful Bill Act, which was signed into law on July 4, 2025.* Not meaningful
ORACLE CORPORATIONQ2 FISCAL 2026 YEAR TO DATE FINANCIAL RESULTSRECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)($ in millions, except per share data) Six Months Ended November 30, % Increase % Increase (Decrease) (Decrease) in Constant Currency (2) in US $ 2025 2025 2024 2024 GAAP Non-GAAP GAAP Non-GAAP GAAP Adj. Non-GAAP GAAP Adj. Non-GAAPTOTAL REVENUES $ 30,983 $ – $ 30,983 $ 27,366 $ – $ 27,366 13% 13% 12% 12%TOTAL OPERATING EXPENSES $ 21,975 $ (3,949) $ 18,026 $ 19,155 $ (3,592) $ 15,563 15% 16% 14% 15% Stock-based compensation (3) 2,280 (2,280) – 2,176 (2,176) – 5% * 5% * Amortization of intangible assets (4) 826 (826) – 1,215 (1,215) – (32%) * (32%) * Acquisition related and other 35 (35) – 44 (44) – (21%) * (24%) * Restructuring 808 (808) – 157 (157) – 415% * 406% *OPERATING INCOME $ 9,008 $ 3,949 $ 12,957 $ 8,211 $ 3,592 $ 11,803 10% 10% 7% 8%OPERATING MARGIN % 29% 42% 30% 43% (93) bp. (131) bp. (136) bp. (158) bp.INCOME TAX EFFECTS (5) $ 707 $ 2,131 $ 2,838 $ 480 $ 1,500 $ 1,980 47% 43% 43% 40%NET INCOME $ 9,062 $ 1,818 $ 10,880 $ 6,080 $ 2,092 $ 8,172 49% 33% 45% 31%DILUTED EARNINGS PER SHARE $ 3.11 $ 3.73 $ 2.13 $ 2.86 46% 31% 42% 28%DILUTED WEIGHTED AVERAGE COMMON 2,916 – 2,916 2,860 – 2,860 2% 2% 2% 2%SHARES OUTSTANDING(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 forentities 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 priorfiscal 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: Six Months Ended Six Months Ended November 30, 2025 November 30, 2024 GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP Cloud and software $ 307 $ (307) $ – $ 299 $ (299) $ – Hardware 14 (14) – 14 (14) – Services 100 (100) – 96 (96) – Sales and marketing 362 (362) – 356 (356) – Research and development 1,314 (1,314) – 1,226 (1,226) – General and administrative 183 (183) – 185 (185) – Total stock-based compensation $ 2,280 $ (2,280) $ – $ 2,176 $ (2,176) $ -(4) Estimated future annual amortization expense related to intangible assets as of November 30, 2025 was as follows: Remainder of fiscal 2026 $ 812 Fiscal 2027 672 Fiscal 2028 635 Fiscal 2029 561 Fiscal 2030 522 Fiscal 2031 332 Thereafter 226 Total intangible assets, net $ 3,760(5) Income tax effects were calculated reflecting an effective GAAP tax rate of 7.2% and 7.3% in the first half of fiscal 2026 and 2025, respectively, and an effective non-GAAP tax rate of 20.7% and 19.5% in the first half of fiscal 2026 and 2025, respectively. The difference in our GAAP and non-GAAP tax rates in each of the first half of fiscal 2026 and 2025 was primarily due to thenet tax effects related to stock-based compensation expense; acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense,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 the first half of fiscal 2026, the impact of the U.S. One, Big, Beautiful Bill Act (refer to Appendix A for additional information).* Not meaningful
ORACLE CORPORATIONQ2 FISCAL 2026 FINANCIAL RESULTSCONDENSED CONSOLIDATED BALANCE SHEETS($ in millions) November 30, May 31, 2025 2025ASSETSCurrent Assets: Cash and cash equivalents $ 19,241 $ 10,786 Marketable securities 525 417 Trade receivables, net 9,440 8,558 Prepaid expenses and other current assets 5,160 4,818 Total Current Assets 34,366 24,579Non-Current Assets: Property, plant and equipment, net 67,875 43,522 Intangible assets, net 3,760 4,587 Goodwill 62,207 62,207 Deferred tax assets 11,531 11,877 Other non-current assets 25,245 21,589 Total Non-Current Assets 170,618 143,782TOTAL ASSETS $ 204,984 $ 168,361LIABILITIES AND STOCKHOLDERS' EQUITYCurrent Liabilities: Notes payable and other borrowings, current $ 8,091 $ 7,271 Accounts payable 10,140 5,113 Accrued compensation and related benefits 1,947 2,243 Deferred revenues 9,940 9,387 Other current liabilities 7,677 8,629 Total Current Liabilities 37,795 32,643Non-Current Liabilities: Notes payable and other borrowings, non-current 99,984 85,297 Income taxes payable 10,885 10,269 Operating lease liabilities 16,311 11,536 Other non-current liabilities 9,552 7,647 Total Non-Current Liabilities 136,732 114,749Stockholders' Equity 30,457 20,969TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 204,984 $ 168,361
ORACLE CORPORATIONQ2 FISCAL 2026 FINANCIAL RESULTSCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS($ in millions) Six Months Ended November 30, 2025 2024Cash Flows From Operating Activities:Net income $ 9,062 $ 6,080Adjustments to reconcile net income to net cash provided by operating activities:Depreciation 3,055 1,712Amortization of intangible assets 826 1,215Deferred income taxes 332 (601)Stock-based compensation 2,280 2,176Gains from investments and other, net (2,227) 298Changes in operating assets and liabilities:Increase in trade receivables, net (900) (451)Decrease in prepaid expenses and other assets 1,285 676Decrease in accounts payable and other liabilities (1,366) (1,143)Decrease in income taxes payable (2,608) (1,685)Increase in deferred revenues 467 454Net cash provided by operating activities 10,206 8,731Cash Flows From Investing Activities:Purchases of marketable securities and other investments (634) (636)Proceeds from sales and maturities of marketable securities and other investments 4,737 356Capital expenditures (20,535) (6,273)Net cash used for investing activities (16,432) (6,553)Cash Flows From Financing Activities:Payments for repurchases of common stock (95) (300)Proceeds from issuances of common stock 1,308 307Shares repurchased for tax withholdings upon vesting of restricted stock-based awards (109) (898)Payments of dividends to stockholders (2,848) (2,221)Proceeds from (repayments of) commercial paper and other short-term financing, net 886 (396)Proceeds from issuances of senior notes and term loan credit agreements, net of issuance costs 17,880 11,837Repayments of senior notes, term loan credit agreements and other borrowings (2,122) (9,700)Other financing activities, net (203) (276)Net cash provided by (used for) financing activities 14,697 (1,647)Effect of exchange rate changes on cash and cash equivalents (16) (44)Net increase in cash and cash equivalents 8,455 487Cash and cash equivalents at beginning of period 10,786 10,454Cash and cash equivalents at end of period $ 19,241 $ 10,941
ORACLE CORPORATIONQ2 FISCAL 2026 FINANCIAL RESULTSFREE CASH FLOW – TRAILING FOUR-QUARTERS (1)($ in millions) Fiscal 2025 Fiscal 2026 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4GAAP Operating Cash Flow $ 19,126 $ 20,287 $ 20,745 $ 20,821 $ 21,534 $ 22,296Capital Expenditures (7,855) (10,745) (14,933) (21,215) (27,414) (35,477)Free Cash Flow $ 11,271 $ 9,542 $ 5,812 $ (394) $ (5,880) $ (13,181)Operating Cash Flow % 8% 19% 14% 12% 13% 10%Growth over prior yearFree Cash Flow % Growth 19% (6%) (53%) (103%) (152%) (238%)over prior yearGAAP Net Income $ 10,976 $ 11,624 $ 12,160 $ 12,443 $ 12,441 $ 15,425Operating Cash Flow as a 174% 175% 171% 167% 173% 145%% of Net IncomeFree Cash Flow as a 103% 82% 48% (3%) (47%) (85%)% of Net Income(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 toanalyze cash flow generated from operations. We believe free cash flow is also useful as one of the bases for comparing our performance with ourcompetitors. 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 indicatorof our performance, or as an alternative to cash flows from operating activities as a measure of liquidity.
ORACLE CORPORATIONQ2 FISCAL 2026 FINANCIAL RESULTSSUPPLEMENTAL 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 $ 15,162 Software license 870 1,195 1,129 2,007 5,201 766 939 1,705 Software support 4,896 4,869 4,797 4,961 19,523 4,955 4,938 9,893 Software 5,766 6,064 5,926 6,968 24,724 5,721 5,877 11,598 Hardware 655 728 703 850 2,936 670 776 1,446 Services 1,263 1,330 1,291 1,348 5,233 1,349 1,428 2,777 Total revenues $ 13,307 $ 14,059 $ 14,130 $ 15,903 $ 57,399 $ 14,926 $ 16,058 $ 30,983 AS REPORTED REVENUE GROWTH RATES Cloud 21% 24% 23% 27% 24% 28% 34% 31% Software license 7% 1% (10%) 9% 2% (12%) (21%) (17%) Software support 0% 0% (2%) 1% 0% 1% 1% 1% Software 1% 0% (4%) 3% 0% (1%) (3%) (2%) Hardware (8%) (4%) (7%) 1% (4%) 2% 7% 5% Services (9%) (3%) (1%) (2%) (4%) 7% 7% 7% Total revenues 7% 9% 6% 11% 8% 12% 14% 13% CONSTANT CURRENCY REVENUE GROWTH RATES (2) Cloud 22% 24% 25% 27% 24% 27% 33% 30% Software license 8% 3% (8%) 8% 3% (13%) (23%) (19%) Software support 0% 0% 0% 0% 0% (1%) 0% 0% Software 1% 0% (2%) 2% 1% (2%) (5%) (4%) Hardware (8%) (3%) (5%) 0% (4%) 1% 5% 3% Services (8%) (3%) 1% (2%) (3%) 5% 6% 6% Total revenues 8% 9% 8% 11% 9% 11% 13% 12% CLOUD REVENUES BY OFFERINGS Cloud applications $ 3,469 $ 3,503 $ 3,558 $ 3,742 $ 14,272 $ 3,839 $ 3,898 $ 7,736 Cloud infrastructure 2,154 2,434 2,652 2,995 10,234 3,347 4,079 7,426 Total cloud revenues $ 5,623 $ 5,937 $ 6,210 $ 6,737 $ 24,506 $ 7,186 $ 7,977 $ 15,162 AS REPORTED REVENUE GROWTH RATES Cloud applications 10% 10% 9% 12% 10% 11% 11% 11% Cloud infrastructure 45% 52% 49% 52% 50% 55% 68% 62% Total cloud revenues 21% 24% 23% 27% 24% 28% 34% 31% CONSTANT CURRENCY REVENUE GROWTH RATES (2) Cloud applications 10% 10% 10% 11% 10% 10% 11% 10% Cloud infrastructure 46% 52% 51% 52% 51% 54% 66% 61% Total cloud revenues 22% 24% 25% 27% 24% 27% 33% 30% GEOGRAPHIC REVENUES Americas $ 8,372 $ 8,933 $ 9,000 $ 10,034 $ 36,339 $ 9,662 $ 10,467 $ 20,129 Europe/Middle East/Africa 3,228 3,381 3,421 3,996 14,025 3,481 3,760 7,240 Asia Pacific 1,707 1,745 1,709 1,873 7,035 1,783 1,831 3,614 Total revenues $ 13,307 $ 14,059 $ 14,130 $ 15,903 $ 57,399 $ 14,926 $ 16,058 $ 30,983 (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 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 and 2024 for the fiscal 2026 and fiscal 2025 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods.
APPENDIX A
ORACLE CORPORATIONQ2 FISCAL 2026 FINANCIAL RESULTSEXPLANATION 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 business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, 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:
— Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses, income tax effects and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.
— Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses, income tax effects and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.
— Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses, income tax effects and net income measures. We incurred expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses consisted of personnel-related costs for transitional and certain other employees, certain business combination adjustments including certain adjustments after the measurement period has ended, and certain other operating items, net. Restructuring expenses consisted of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. Although acquisition related and other expenses and restructuring expenses may diminish over time with respect to past acquisitions and/or strategic initiatives, we generally will incur certain of these expenses in connection with any future acquisitions and/or strategic initiatives.
— Impact of the U.S. One, Big, Beautiful Bill Act (OBBBA): OBBBA was signed into law on July 4, 2025. We recorded a net tax expense of $958 million during the first quarter of fiscal 2026, primarily related to the remeasurement of a deferred tax liability previously recorded during fiscal 2021, as part of the partial realignment of our legal entity structure. We have excluded the impact of this charge from our non-GAAP income taxes and net income measures in the first half of fiscal 2026. We believe making these adjustments provides insight to our operating performance and comparability to past operating results.
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SOURCE Oracle
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