Oracle Corporation Q2 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Total revenue was 16.1 billion dollars, up 13% year over year, an acceleration from 9% growth in Q2 FY2025.
  • Total cloud revenue rose to 8 billion dollars, up 33%, compared to 24% growth in the prior year period. Cloud revenue now represents half of total company revenue.
  • Remaining Performance Obligations increased to 523.3 billion dollars, up 433% from last year and 68 billion dollars higher since August 2025.
  • Non-GAAP EPS was 2 dollars and 26 cents, up 51%, and GAAP EPS was 2 dollars and 10 cents, up 86%, partially benefiting from a 2.7 billion dollar pretax gain from the sale of Oracle’s stake in Ampere.
  • Operating income was 6.7 billion dollars, up 8% year over year.
  • Operating cash flow was 2.1 billion dollars; free cash flow was negative 10 billion dollars due to 12 billion dollars of CapEx investments for cloud and AI capacity expansion.

Key Business Segment Performance

Cloud Infrastructure (OCI)

  • Revenue was 4.1 billion dollars, up 66% year over year.
  • GPU-related infrastructure revenue increased 177% year over year.
  • OCI now operates 147 customer-facing regions, with 64 more planned globally.
  • Approximately 400 megawatts of new data center capacity were delivered in the quarter.

Cloud Databases

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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 Q2 FY 2026 Earnings 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. Sir, please go ahead. Ken Bond: Thank you, Tiffany. Afternoon, everyone, and welcome to Oracle's second quarter fiscal year 2026 earnings conference call. On the call today are Chairman and Chief Technology Officer, Lawrence Ellison, Chief Executive Officer, Mike Cecilia, Chief Executive Officer Clay McGork, and Principal Financial Officer, Doug Caring. A copy of the press release and financial tables, which includes a GAAP to non-GAAP reconciliation, other supplemental financial information, and a list of many customers who purchased Oracle Cloud Services or went live on Oracle Cloud recently, will be available from our Investor Relations website. As a reminder, today's discussion will include forward-looking statements, and we will discuss some important factors relating to our business. These forward-looking statements are also subject to risks and uncertainties that may cause actual results to differ materially from statements b

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