# Oracle Corporation (ORCL) Q1 2026 Financial Results Summary
**Release Date:** September 9, 2025
Oracle Corporation (NYSE: ORCL) has reported its financial results for the first quarter of fiscal year 2026. The key highlights from the report are as follows:
### Financial Summary
– **Total Revenue:** $14.9 billion, an increase of **12% in USD** and **11% in constant currency** year-over-year.
– **Cloud Revenue:** $7.2 billion, up **28% in USD** and **27% in constant currency** compared to the same quarter last year.
– **Cloud Infrastructure (IaaS) Revenue:** $3.3 billion, showing substantial growth of **55% in USD** and **54% in constant currency**.
– **Cloud Application (SaaS) Revenue:** $3.8 billion, up **11% in USD** and **10% in constant currency**.
– **Fusion Cloud ERP (SaaS) Revenue:** $1 billion, reflecting an increase of **17% in USD** and **16% in constant currency**.
– **NetSuite Cloud ERP (SaaS) Revenue:** $1 billion, with a growth of **16% in USD** and **15% in constant currency**.
– **Software Revenue:** $5.7 billion, a slight decrease of **1% in USD** and **2% in constant currency**.
– **Total Remaining Performance Obligations (RPO):** $455 billion, up an astounding **359%** year-over-year in both USD and constant currency.
### Earnings Metrics
– **GAAP Earnings per Share (EPS):** $1.01, a decrease of **2% in USD** and **5% in constant currency**.
– **Non-GAAP Earnings per Share (EPS):** $1.47, an increase of **6% in USD** and **4% in constant currency**.
– **GAAP Operating Income:** $4.3 billion.
– **Non-GAAP Operating Income:** $6.2 billion, up **9% in USD** and **7% in constant currency**.
– **GAAP Net Income:** $2.9 billion, virtually stable, with a 0% change year-over-year.
– **Non-GAAP Net Income:** $4.3 billion, reflecting a growth of **8% in USD** and **6% in constant currency**.
### Cash Flow
– **Operating Cash Flow:** $21.5 billion over the past year, up **13% in USD**.
– **Short-term Deferred Revenues:** $12.1 billion.
### Dividends and Share Repurchase
– The board of directors declared a **quarterly cash dividend of $0.50 per share**. This dividend is set to be paid to stockholders of record as of the close of business on **October 9, 2025**, with a payment date of **October 23, 2025**.
– Upon reviewing share repurchase actions, Oracle repurchased shares amounting to **$95 million** in this quarter.
### Recent Developments
– Oracle signed **four multi-billion-dollar contracts** with three different customers, contributing to the impressive RPO growth.
– The company expects to exceed **$18 billion** in Cloud Infrastructure revenue for the fiscal year, with projections growing substantially in the subsequent years.
– MultiCloud database revenue from partnerships with Amazon, Google, and Microsoft surged by **1,529%** in Q1.
– Upcoming innovations include the introduction of the **Oracle AI Database**, enhancing customer capabilities in utilizing advanced AI models.
### Forward-Looking Statements
CEO Safra Catz expressed optimism about future demand for Oracle Cloud, anticipating that RPO may surpass half a trillion dollars in upcoming months. The financial outlook presented at the upcoming Financial Analyst Meeting will provide more detail on Oracle’s anticipated growth trajectory over the next several years.
Overall, Oracle Corporation’s Q1 2026 results indicate robust growth in cloud revenues while adapting to fluctuations in software revenue, with significant long-term contracts strengthening their market position.
| REVENUES | Three Months Ended August 31, 2025 | % of Revenues | 2024 | % of Revenues | % Increase (Decrease) in US $ | % Increase (Decrease) in Constant Currency (1) |
|---|---|---|---|---|---|---|
| Cloud | $7,186 | 48% | $5,623 | 42% | 28% | 27% |
| Software | $5,721 | 38% | $5,766 | 44% | -1% | -2% |
| Hardware | $670 | 5% | $655 | 5% | 2% | 1% |
| Services | $1,349 | 9% | $1,263 | 9% | 7% | 5% |
| Total revenues | $14,926 | 100% | $13,307 | 100% | 12% | 11% |
| OPERATING EXPENSES | ||||||
| Cloud and software | $3,607 | 24% | $2,597 | 19% | 39% | 38% |
| Hardware | $178 | 1% | $162 | 1% | 10% | 9% |
| Services | $1,099 | 7% | $1,147 | 9% | -4% | -5% |
| Sales and marketing | $2,063 | 14% | $2,036 | 15% | 1% | 0% |
| Research and development | $2,491 | 17% | $2,306 | 17% | 8% | 8% |
| General and administrative | $376 | 2% | $358 | 3% | 5% | 4% |
| Amortization of intangible assets | $420 | 3% | $624 | 5% | -33% | -33% |
| Acquisition related and other | $13 | 0% | $13 | 0% | 10% | 8% |
| Restructuring | $402 | 3% | $73 | 1% | 448% | 439% |
| Total operating expenses | $10,649 | 71% | $9,316 | 70% | 14% | 14% |
| OPERATING INCOME | $4,277 | 29% | $3,991 | 30% | 7% | 4% |
| Interest expense | $-923 | -6% | $-842 | -6% | 10% | 10% |
| Non-operating income, net | $73 | 0% | $20 | 0% | 250% | 286% |
| INCOME BEFORE INCOME TAXES | $3,427 | 23% | $3,169 | 24% | 8% | 4% |
| Provision for income taxes (2) | $500 | 3% | $240 | 2% | 108% | 101% |
| NET INCOME | $2,927 | 20% | $2,929 | 22% | 0% | -4% |
| EARNINGS PER SHARE: | ||||||
| Basic | $1.04 | $1.06 | ||||
| Diluted | $1.01 | $1.03 | ||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||
| Basic | 2,826 | 2,761 | ||||
| Diluted | 2,909 | 2,851 | ||||
| August 31, 2025 | May 31, 2025 | |
|---|---|---|
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $10,445 | $10,786 |
| Marketable securities | $560 | $417 |
| Trade receivables, net | $8,843 | $8,558 |
| Prepaid expenses and other current assets | $4,786 | $4,818 |
| Total Current Assets | $24,634 | $24,579 |
| Non-Current Assets: | ||
| Property, plant and equipment, net | $53,194 | $43,522 |
| Intangible assets, net | $4,167 | $4,587 |
| Goodwill | $62,211 | $62,207 |
| Deferred tax assets | $11,734 | $11,877 |
| Other non-current assets | $24,509 | $21,589 |
| Total Non-Current Assets | $155,815 | $143,782 |
| TOTAL ASSETS | $180,449 | $168,361 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current Liabilities: | ||
| Notes payable and other borrowings, current | $9,079 | $7,271 |
| Accounts payable | $8,203 | $5,113 |
| Accrued compensation and related benefits | $1,794 | $2,243 |
| Deferred revenues | $12,098 | $9,387 |
| Other current liabilities | $8,700 | $8,629 |
| Total Current Liabilities | $39,874 | $32,643 |
| Non-Current Liabilities: | ||
| Notes payable and other borrowings, non-current | $82,236 | $85,297 |
| Income taxes payable | $10,583 | $10,269 |
| Operating lease liabilities | $14,094 | $11,536 |
| Other non-current liabilities | $8,996 | $7,647 |
| Total Non-Current Liabilities | $115,909 | $114,749 |
| Stockholders’ Equity | $24,666 | $20,969 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $180,449 | $168,361 |
