Oracle reported strong fourth-quarter and fiscal 2026 results on June 10, driven by rapid growth in its cloud infrastructure and cloud applications businesses as demand for AI computing continued to accelerate.
On the bottom line, Q4 GAAP net income reached $4.2 billion, up 23%, while non-GAAP net income grew to $6.2 billion, up 26%. GAAP earnings per share climbed to $1.45, up 21%, and non-GAAP EPS rose to $2.11, up 24%.
Cloud revenue, which includes infrastructure and software-as-a-service offerings, climbed 47% to $9.9 billion. The growth was led by Oracle Cloud Infrastructure (OCI), whose revenue nearly doubled, rising 93% to $5.8 billion. Revenue from cloud applications increased 10% to approximately $4.1 billion.
Meanwhile, overall software revenue declined 2% to $6.8 billion as customers continued shifting workloads from on-premises systems to the cloud.
“Our cloud infrastructure growth demonstrates our ability to meet the increasing demand for AI workloads,” said Safra Catz, Executive Vice Chair of the Oracle board of directors, during the earnings call.
The company also reported a sharp increase in remaining performance obligations (RPO), a measure of contracted future revenue. RPO reached $638 billion at the end of the quarter, up more than 360% from a year earlier, reflecting strong demand for AI-related cloud services and large infrastructure agreements.
Oracle’s AI buildout is expected to require significantly higher spending. The company spent about $55.7 billion on capital expenditures in fiscal 2026 and expects net capital spending of roughly $70 billion in fiscal 2027, according to executives. Including customer-funded investments and prepayments, total spending could reach up to $95 billion.
In fiscal year 2026, Oracle raised $43 billion in debt financing and $5 billion in equity financing.
The company plans to raise roughly $40 billion through a combination of debt and equity financing during fiscal 2027, including a previously announced $20 billion equity issuance.
Looking ahead, Oracle reaffirmed its target of reaching $90 billion in revenue in fiscal 2027 and projected continued strong cloud growth.
Despite reporting stronger-than-expected results, Oracle’s shares fell nearly 9% in after-hours trading as investors focused on the company's plans to sharply increase spending on AI infrastructure.


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