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Aug 31, 2025
Oracle Q1 2026 Earnings Report
Oracle reported its fiscal year 2026 first quarter financial results, showcasing significant growth in cloud revenue and remaining performance obligations.
Key Takeaways
Oracle delivered a strong Q1 FY26, with total revenues increasing by 12% to $14.9 billion, driven primarily by a 28% surge in cloud revenue. GAAP EPS saw a slight decrease of 2% to $1.01, while Non-GAAP EPS rose by 6% to $1.47. A remarkable highlight was the 359% increase in Remaining Performance Obligations to $455 billion, fueled by multi-billion dollar contracts.
Total revenues for Q1 FY26 reached $14.9 billion, marking a 12% increase in USD and 11% in constant currency year-over-year.
Cloud revenue (IaaS plus SaaS) grew significantly by 28% in USD and 27% in constant currency, totaling $7.2 billion.
Remaining Performance Obligations (RPO) soared by 359% to $455 billion, indicating strong future revenue potential from signed contracts.
Non-GAAP operating income increased by 9% to $6.2 billion, and Non-GAAP EPS grew by 6% to $1.47, demonstrating solid underlying business performance.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Oracle anticipates continued strong demand for its Cloud Infrastructure and MultiCloud offerings, projecting significant revenue growth in these areas over the next five years, with much of this growth already secured in RPO.
Positive Outlook
- Expects to sign several additional multi-billion-dollar customers in the coming months, potentially pushing RPO above half-a-trillion dollars.
- Anticipates Oracle Cloud Infrastructure revenue to grow 77% to $18 billion this fiscal year.
- Projects Oracle Cloud Infrastructure revenue to increase to $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years.
- Most of the revenue in the 5-year forecast for Cloud Infrastructure is already booked in the reported RPO.
- MultiCloud database revenue from Amazon, Google, and Microsoft is expected to grow substantially for several years with the delivery of 37 new datacenters.
Challenges Ahead
- No specific negative forward guidance was provided in the report.
- The report highlights potential risks such as the ability to develop new products, manage complex offerings, secure datacenter capacity, and address cybersecurity breaches.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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