Oracle Corporation Q1 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Oracle delivered a strong start to FY2026, driven heavily by AI-related cloud demand.
  • Remaining Performance Obligations (RPO) reached $455 billion, up 359% year-over-year and up $317 billion from Q4 FY2025.
  • Management emphasized Oracle’s growing role as a key provider for AI training and enterprise AI inferencing workloads.

Financial Highlights (Compared to Q1 FY2025 Unless Noted)

  • Total revenue: $14.9B, up 11% (vs 8% growth last year).
  • Total cloud revenue: $7.2B, up 27%.
  • Cloud infrastructure revenue: $3.3B, up 54% (on top of 46% last year).
  • OCI consumption revenue: up 57%.
  • Cloud database services: up 32%, nearing $2.8B annualized.
  • Autonomous Database revenue: up 43% (on top of 26% last year).
  • Multi-cloud database revenue: up 1529%.
  • Cloud application revenue: $3.8B, up 10%.
  • Strategic back-office application revenue: $2.4B, up 16%.
  • Total software revenue: $5.7B, down 2%.
  • Non-GAAP EPS: $1.47; GAAP EPS: $1.01.
  • Operating cash flow (last four quarters): $21.5B, up 13%.
  • Free cash flow (LTM): -$5.9B due to $27.4B in CapEx.

Capital Allocation and Balance Sheet

  • CapEx for FY2026 expected at ~$35B, mostly for revenue-generating cloud equipment.
  • Share repurchases: 440,000 shares for $95M.

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Operator: Hello and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the Oracle Corporation Q1 FY2026 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star then the number one on your telephone keypad. I would now like to turn the call over to Ken Bond, Head of Investor Relations. Ken, please go ahead. Ken Bond: Thank you, Tiffany. Good afternoon, everyone, and welcome to Oracle's first quarter fiscal year 2026 earnings conference call. A copy of the press release and financial tables, which include a GAAP to non-GAAP reconciliation and other supplemental financial information, can be viewed and downloaded from our investor relations website. Additionally, a list of many customers who purchased Oracle Cloud Services or went live on Oracle Cloud recently will be available from the investor relations website. On the call today are Chairman and Chief Technology Officer, Lawrence Ellison, and Chief Executive Officer, Safra Catz. A reminder, today's discussion will include forward-looking statements, including predictions, expectations, estimates, or other information that might be considered forward-looking. Throughout today's discussion, we will present some important factors relating to our business, which may p

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