Oracle Corporation (NYSE: ORCL) reported record fourth-quarter revenues of $19.2 billion for the period ended May 31, 2026, up 21% in US dollars and 20% in constant currency, driven by a near-doubling of cloud infrastructure demand tied to AI workloads.
Cloud revenue for the quarter reached $9.9 billion, up 47% year-over-year. Within that figure, cloud infrastructure revenue, which Oracle classifies as IaaS, rose 93% to $5.8 billion. Cloud applications revenue, classified as SaaS, grew 10% to $4.1 billion.
#Cloud Infrastructure Growth Accelerates Through AI Demand
Oracle's remaining performance obligations, a measure of contracted future revenue, closed Q4 at $638 billion, up $85 billion from the end of Q3 and up 363% year-over-year. The company said the majority of the sequential increase reflected large-scale AI contracts in which customers either prepaid for GPU capacity or supplied their own hardware to Oracle datacenters. Oracle said the prepaid and customer-supplied hardware portions of its large AI contracts now total $75 billion, reducing the amount of capital the company must raise independently to build out its AI infrastructure.
Oracle's Multicloud AI Database grew 404% in Q4, which the company described as its fastest-growing business ever.
Q4 GAAP operating income was $6.1 billion, up 20%. Non-GAAP operating income, which excludes stock-based compensation, amortization of intangibles, and restructuring charges, reached $8.6 billion, up 22%. GAAP net income available to common shareholders was $4.2 billion, up 23%.
GAAP diluted earnings per share for the quarter were $1.45, up 21%. Non-GAAP diluted EPS was $2.11, up 24%. Oracle noted that both Q4 and full-year non-GAAP EPS figures include one-time net investment gains; excluding those gains, Q4 non-GAAP EPS would have been $2.03, up 20%.
#Full-Year Revenue Reaches $67.4 Billion
For fiscal year 2026, Oracle reported total revenues of $67.4 billion, up 17% in US dollars. Full-year cloud revenue was $34.0 billion, up 39%, with IaaS contributing $18.1 billion, up 77%, and SaaS contributing $15.9 billion, up 11%. Software revenues declined 1% to $24.5 billion, which the company attributed to customer migration away from on-premise software to cloud-based services.
Full-year GAAP net income available to common shareholders was $17.0 billion, up 36%. Full-year GAAP diluted EPS was $5.83, up 34%. Non-GAAP diluted EPS for the year was $7.63, up 27%, though the company disclosed that excluding one-time investment gains, adjusted non-GAAP EPS would have been $6.83, up 13%.
Operating cash flow for fiscal 2026 was $32.0 billion, up 54%. Free cash flow was negative $23.7 billion, reflecting $55.7 billion in capital expenditures as the company continued to expand its cloud datacenter footprint. However, Oracle said approximately $75 billion of its large AI infrastructure contracts involve either customer prepayments for GPU capacity or customer-supplied hardware deployed in Oracle datacenters, reducing the amount of capital Oracle must fund independently.
#Oracle Raises FY2027 Earnings Guidance and Plans $40 Billion in New Financing
Oracle said it expects Q1 FY2027 total revenues to grow between 27% and 29% in US dollars. Cloud revenue for the quarter is projected to grow between 58% and 64% in US dollars. Non-GAAP EPS for Q1 FY2027 is guided at $1.72 to $1.76.
For the full fiscal year 2027, Oracle confirmed prior guidance of $90 billion in total revenue and raised its non-GAAP EPS target to $8.05, which it said represents 18% growth after adjusting for one-time events in fiscal 2026.
To fund its infrastructure expansion, Oracle said it plans to raise approximately $40 billion in fiscal 2027 through a combination of debt and equity financing, including a previously announced $20 billion at-the-market equity program. The company said it does not expect to issue additional debt in calendar year 2026.
Oracle competes primarily with Amazon Web Services, Microsoft Azure, and Google Cloud in cloud infrastructure. The broader IaaS market has expanded materially as enterprise and hyperscaler demand for AI training and inferencing capacity has risen, with multi-cloud adoption enabling customers to distribute workloads across providers.
Oracle's board declared a quarterly cash dividend of $0.50 per share, payable July 24, 2026, to stockholders of record as of July 10, 2026.
The company cautioned that forward-looking statements, including its FY2027 revenue and earnings targets, are subject to material risks including the ability to develop and integrate AI products, datacenter capacity constraints, GPU supply chain dependencies, cybersecurity threats, unfavorable legal proceedings, and macroeconomic and geopolitical conditions. Full risk disclosures are available in Oracle's most recent Form 10-K and 10-Q filings with the SEC.