Oracle (ORCL) Q4 2026 earnings summary

Executive summary

• Q4 2026 revenue reached $19.2 billion, up 21% year-over-year, with strong growth in both cloud infrastructure and applications.

• Cloud infrastructure revenue surged 93% in Q4, while cloud applications revenue grew 10%.

• FY 2026 total revenue was $67.4 billion, up 17%, with non-GAAP operating income of $29 billion, up 16%.

• Remaining performance obligations (RPO) reached $638 billion, up 363%, driven by large AI-related contracts.

• Operating and net income reached record highs, with significant increases in both GAAP and non-GAAP metrics.

Financial highlights

• Q4 non-GAAP operating income was $8.6 billion, up 22% year-over-year; non-GAAP EPS was $2.11, up 24%.

• FY 2026 non-GAAP EPS was $7.63, up 27%; excluding one-time gains, EPS was $6.83.

• Operating cash flow for FY 2026 reached $32 billion, up 54% year-over-year.

• Gross margin for the year declined by about five points due to infrastructure build-out, partially offset by lower operating costs.

• Free cash flow for FY 2026 was negative $23.7 billion due to heavy cloud infrastructure investment.

Outlook and guidance

• FY 2027 revenue guidance is $90 billion, up 34% in constant currency; non-GAAP EPS expected at $8.05, up 18%.

• Q1 FY 2027 revenue growth expected between 27% and 29%; cloud revenue growth between 58% and 64%.

• Q1 FY 2027 non-GAAP EPS expected between $1.72 and $1.76, up 17% to 20%.

• Long-term outlook projects 31% CAGR in total revenue and 28% CAGR in non-GAAP EPS from FY26 to FY30.

• Gross margins expected to step down in FY27 due to data center ramp-up, but infrastructure margins to improve as revenue scales.