Oracle Corporation, a multinational technology corporation, has recently released its fiscal year 2026 first-quarter financial results. The company’s stock has been a topic of interest among investors, with many analyzing its earnings report to gauge the company’s financial health and future prospects.
On September 9, 2025, Oracle announced its Q1 fiscal 2026 earnings, with total revenue reaching $14.9 billion, up 12% in USD and 11% in constant currency. Cloud revenues were a significant contributor to this growth, increasing 28% in USD and 27% in constant currency to $7.2 billion. The company’s cloud infrastructure revenue jumped 55% in USD and 54% in constant currency to $3.3 billion, while cloud application revenue grew 11% in USD and 10% in constant currency to $3.8 billion.
Key Highlights from Oracle’s Q1 Fiscal 2026 Earnings Report
Remaining Performance Obligations (RPO): Oracle’s RPO soared to $455 billion, up 359% year-over-year in both USD and constant currency. This significant growth in RPO indicates a strong demand for Oracle’s cloud services and provides visibility into the company’s future revenue streams.
Cloud Revenue Growth: Total cloud revenue grew 27% to $7.2 billion, driven by a 54% increase in cloud infrastructure revenue and a 1,529% surge in multi-cloud database revenue. This growth highlights Oracle’s success in expanding its cloud business and increasing its market share.
Operating Income and Earnings Per Share: GAAP operating income was $4.3 billion, while non-GAAP operating income was $6.2 billion, up 9% year-over-year in USD and 7% in constant currency. Non-GAAP earnings per share was $1.47, up 6% year-over-year in USD and 4% in constant currency.
Oracle’s strong cloud revenue growth and increasing RPO backlog demonstrate the company’s successful transition to cloud-based services. The company’s focus on artificial intelligence (AI) and machine learning (ML) is also expected to drive future growth, with Oracle’s AI database enabling data vectorization and seamless integration with major large language models (LLMs).
Guidance and Outlook
Oracle has provided guidance for its second quarter of fiscal 2026, expecting total revenue growth of 12-14% in constant currency and non-GAAP EPS of $1.58-$1.62. The company anticipates cloud revenue growth of 32-36% in constant currency and operating income growth of mid-teens this year, accelerating further in fiscal 2027.
Oracle’s strong financial performance and optimistic guidance have positively impacted its stock price. The company’s focus on cloud computing, AI, and ML positions it well for future growth, making it an attractive investment opportunity for those looking to invest in the technology sector.
Conclusion
Oracle’s Q1 fiscal 2026 earnings report demonstrates the company’s strong financial performance and growth prospects. With a significant increase in cloud revenue and RPO backlog, Oracle is well-positioned to capitalize on the growing demand for cloud-based services. The company’s focus on AI and ML is expected to drive future growth, making it an attractive investment opportunity.
As investors continue to analyze Oracle’s financial performance and growth prospects, it’s essential to stay informed about the company’s latest developments and trends in the technology sector.
Oracle’s Financial Performance: A Closer Look
| Category | Value | Change |
|---|---|---|
| Total Revenue | $14.9 billion | Up 12% in USD, 11% in constant currency |
| Cloud Revenue | $7.2 billion | Up 28% in USD, 27% in constant currency |
| Cloud Infrastructure Revenue | $3.3 billion | Up 55% in USD, 54% in constant currency |
| Remaining Performance Obligations (RPO) | $455 billion | Up 359% year-over-year |
| Non-GAAP Earnings Per Share | $1.47 | Up 6% year-over-year in USD, 4% in constant currency |