ORCL 8-K
Oracle Corp (ORCL)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
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(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 2—Financial Information
Item 2.02 Results of Operations and Financial Condition
On September 10, 2026, Oracle Corporation (“Oracle”) issued a press release announcing financial results for its fiscal first quarter ended August 31, 2026. A copy of this press release is furnished as Exhibit 99.1 to this report.
Section 8—Other Events
Item 8.01 Other Events
Oracle announced that its Board of Directors has declared a cash dividend of $1,625 per share of our outstanding Mandatory Convertible Preferred Stock and $0.50 per share of our outstanding common stock. The Mandatory Convertible Preferred Stock dividend is payable on October 15, 2026 to stockholders of record as of the close of business on October 1, 2026 and the common stock dividend is payable on October 23, 2026 to stockholders of record as of the close of business on October 9, 2026.
Section 9—Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No. |
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Description of Exhibit |
99.1 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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ORACLE CORPORATION |
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Dated: September 10, 2026 |
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By: |
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/s/ MARIA SMITH |
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Maria Smith Executive Vice President, Chief Accounting Officer (Principal Accounting Officer) |
Exhibit 99.1
For Immediate Release
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Contact: |
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Ken Bond |
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Deborah Hellinger |
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Oracle Investor Relations |
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Oracle Corporate Communications |
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1.650.607.0349 |
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1.212.508.7935 |
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Oracle Announces Q1 Results Driven by Triple Digit Growth in Cloud Infrastructure Revenues
AUSTIN, Texas, September 10, 2026 -- Oracle Corporation (NYSE: ORCL) today announced Q1 FY27 results with strong revenue growth. Total quarterly revenues increased 30% to $19.3 billion, reflecting strong execution in our infrastructure business, with the delivery of 850MW additional datacenter capacity. Cloud revenues (IaaS + SaaS) increased 62% to $11.6 billion, driven by 121% growth in Cloud Infrastructure (IaaS), and 10% growth in Cloud Applications (SaaS). Software revenues were down 3% to $5.5 billion, reflecting our customers’ continuing migration from on-premises software to the Cloud. Services revenues were $1.4 billion, up 5%, and Hardware revenues were $0.8 billion, up 15%.
Oracle generated Q1 GAAP operating income of $6.7 billion, up 57%, while non-GAAP operating income rose to $8.2 billion, up 31%, driven by continued broad-based demand in Cloud Infrastructure and Cloud Applications. GAAP net income available to common shareholders reached $4.7 billion, up 60%, and non-GAAP net income available to common shareholders grew to $5.8 billion, up 34%. Q1 GAAP earnings per share increased to $1.56, up 55%, and non-GAAP earnings per share climbed to $1.92, up 30%.
Oracle’s strong operating income translated to a record Q1 operating cash flow of $23 billion, up 184%. Free cash flow was negative $5 billion for Q1 as Oracle continued to execute on investments to support the growth of its Cloud Infrastructure business.
Remaining Performance Obligations
Customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply. Oracle booked more than $30 billion of additional AI cloud contracts in Q1 increasing its RPO to $664 billion. Based on the structuring of those new contracts, the Company confirms there is no incremental impact on its plans to raise capital. Since the end of Q4, Oracle also delivered more than 300,000 GPUs to its AI Cloud customers and almost triple the capacity delivered in Q4 FY26.
Capital Investment Program and Capital Funding
During Q1 FY 2027, Oracle successfully completed the sale of $20 billion of common stock (before commissions) through an At-the-Market (ATM) equity program, as part of its previously disclosed capital investment program.
Guidance for Q2 FY 2027
Oracle is providing the following forward-looking guidance for Q2 FY 2027:
Guidance for Full FY 2027
For fiscal year 2027, we now expect total revenue to be at least $90 billion, and non-GAAP EPS to be at $8.10.
New Oracle AI Data Platform Automatically Generates Enterprise Ontology
Virtually all of Oracle’s enterprise customers want to use AI to reason on their private data and to use AI agents to automate their business processes. To do this efficiently, customers must first precisely describe the semantic details of their private data and business processes in an Enterprise Ontology (a model defining the core concepts, relationships and rules of the business). Palantir pioneered the use of AI on private enterprise data by carefully crafting Enterprise Ontologies for each of their customers. The new Oracle AI Data Platform fully automates the creation of Enterprise Ontologies—making it inexpensive, easy and fast and for any enterprise to use the most advanced AI models to reason on their private data and automate their business processes.
New 100% Agentic AI Health Care Management System for Hospitals and Clinics
Oracle’s AI Health Care Management and Electronic Health Records system is an all-new 100% Agentic system made up of a collection of AI agents for every medical specialty from General Medicine to Oncology to Radiology. These specialized AI agents assist medical professionals in diagnosing and treating their patients—leading to better quality of care and better outcomes. AI is on the brink of making quality healthcare accessible to more people throughout the world.
Common Stock Quarterly Dividend
The board of directors declared a quarterly cash dividend of $0.50 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on October 9, 2026, with a payment date of October 23, 2026.
Footnote
1 – Q2 FY26 results included a one-time net investment gain from the sale of Oracle's interest in Ampere. Including the investment gain, Q2 FY27 non-GAAP earnings per share is expected to decline between -19% and -15% in constant currency and decline between -18% and -14% in USD.
Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor/.
About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.
# # #
Trademarks
Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.
"Safe Harbor" Statement: Statements in this press release relating to future plans, expectations, beliefs, intentions and prospects, including statements regarding the anticipated benefits and future use cases for AI, expected future revenues, cloud revenue growth, earnings per share, and future dividend payments are "forward-looking statements" and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services, including our AI products; our AI products not operating as anticipated; our ability to successfully execute our Oracle Cloud strategy; our ability to anticipate, plan for, secure and manage datacenter capacity; our management of complex cloud and hardware offerings, including the sourcing of technologies and technology components such as graphic processing units; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions, joint ventures and strategic alliances; business volatility and risks associated with government contracting; economic, political and market conditions, including tariffs and trade wars; information technology system failures, privacy and data security concerns; cybersecurity breaches; disruptions from our period workforce restructurings; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations, including healthcare regulations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of September 10, 2026. Oracle undertakes no duty to update any statement in light of new information or future events.
ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
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Three Months Ended August 31, |
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% Increase |
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% Increase |
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2026 |
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% of |
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2025 |
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% of |
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(Decrease) |
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in Constant |
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REVENUES |
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Cloud |
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$ |
11,607 |
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60% |
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$ |
7,186 |
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48% |
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62% |
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61% |
Software |
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5,550 |
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29% |
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5,721 |
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38% |
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(3%) |
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(3%) |
Hardware |
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774 |
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4% |
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670 |
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5% |
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15% |
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16% |
Services |
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1,414 |
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7% |
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1,349 |
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9% |
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5% |
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5% |
Total revenues |
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19,345 |
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100% |
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14,926 |
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100% |
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30% |
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30% |
OPERATING EXPENSES |
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Cloud and software |
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6,400 |
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33% |
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3,607 |
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24% |
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77% |
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78% |
Hardware |
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281 |
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2% |
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178 |
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1% |
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58% |
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57% |
Services |
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1,052 |
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5% |
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1,099 |
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7% |
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(4%) |
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(4%) |
Sales and marketing |
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1,811 |
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9% |
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2,063 |
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14% |
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(12%) |
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(12%) |
Research and development |
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2,401 |
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12% |
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2,491 |
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17% |
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(4%) |
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(3%) |
General and administrative |
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376 |
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2% |
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376 |
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2% |
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0% |
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0% |
Amortization of intangible assets |
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202 |
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1% |
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420 |
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3% |
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(52%) |
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(52%) |
Restructuring and other |
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94 |
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1% |
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415 |
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3% |
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(77%) |
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(77%) |
Total operating expenses |
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12,617 |
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65% |
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10,649 |
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71% |
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18% |
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19% |
OPERATING INCOME |
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6,728 |
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35% |
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4,277 |
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29% |
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57% |
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57% |
Interest expense |
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(1,428 |
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(8%) |
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(923 |
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(6%) |
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55% |
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55% |
Non-operating income, net |
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307 |
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2% |
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73 |
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0% |
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323% |
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331% |
INCOME BEFORE INCOME TAXES |
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5,607 |
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29% |
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3,427 |
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23% |
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64% |
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63% |
Provision for income taxes (2) |
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847 |
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4% |
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500 |
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3% |
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69% |
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69% |
NET INCOME |
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$ |
4,760 |
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25% |
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$ |
2,927 |
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20% |
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63% |
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62% |
Preferred stock dividends |
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81 |
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— |
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NET INCOME AVAILABLE TO COMMON SHAREHOLDERS |
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$ |
4,679 |
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$ |
2,927 |
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EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS: |
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Basic |
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$ |
1.58 |
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$ |
1.04 |
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Diluted |
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$ |
1.56 |
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$ |
1.01 |
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
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Basic |
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2,966 |
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2,826 |
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Diluted |
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3,000 |
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2,909 |
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1
ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
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Three Months Ended August 31, |
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% Increase (Decrease) |
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% Increase (Decrease) in |
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2026 |
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Adj. |
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2026 |
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2025 |
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Adj. |
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2025 |
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GAAP |
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Non-GAAP |
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GAAP |
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Non-GAAP |
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TOTAL REVENUES |
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$ |
19,345 |
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$ |
— |
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$ |
19,345 |
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$ |
14,926 |
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$ |
— |
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$ |
14,926 |
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30% |
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30% |
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30% |
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30% |
TOTAL OPERATING EXPENSES |
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$ |
12,617 |
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$ |
(1,423 |
) |
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$ |
11,194 |
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$ |
10,649 |
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$ |
(1,959 |
) |
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$ |
8,690 |
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18% |
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29% |
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19% |
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29% |
Stock-based compensation (3) |
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1,127 |
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(1,127 |
) |
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— |
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1,124 |
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(1,124 |
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— |
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0% |
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* |
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0% |
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* |
Amortization of intangible assets (4) |
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202 |
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(202 |
) |
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— |
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420 |
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(420 |
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— |
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(52%) |
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* |
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(52%) |
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* |
Restructuring and other |
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94 |
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(94 |
) |
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— |
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|
415 |
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(415 |
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— |
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(77%) |
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* |
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(77%) |
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* |
OPERATING INCOME |
|
$ |
6,728 |
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|
$ |
1,423 |
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$ |
8,151 |
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$ |
4,277 |
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$ |
1,959 |
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$ |
6,236 |
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57% |
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31% |
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57% |
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31% |
OPERATING MARGIN % |
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35% |
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42% |
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29% |
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|
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42% |
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612 bp. |
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35 bp. |
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597 bp. |
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27 bp. |
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INCOME TAX EFFECTS (5) |
|
$ |
847 |
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|
$ |
344 |
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$ |
1,191 |
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$ |
500 |
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|
$ |
603 |
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|
$ |
1,103 |
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|
69% |
|
8% |
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69% |
|
8% |
NET INCOME |
|
$ |
4,760 |
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|
$ |
1,079 |
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$ |
5,839 |
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$ |
2,927 |
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$ |
1,356 |
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$ |
4,283 |
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63% |
|
36% |
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62% |
|
36% |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS |
|
$ |
4,679 |
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|
$ |
1,079 |
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$ |
5,758 |
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|
$ |
2,927 |
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$ |
1,356 |
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$ |
4,283 |
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60% |
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34% |
|
59% |
|
34% |
DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS |
|
$ |
1.56 |
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|
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$ |
1.92 |
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$ |
1.01 |
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|
|
|
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$ |
1.47 |
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55% |
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30% |
|
54% |
|
30% |
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DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |
|
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3,000 |
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|
|
— |
|
|
|
3,000 |
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|
|
2,909 |
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|
|
— |
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|
|
2,909 |
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|
3% |
|
3% |
|
3% |
|
3% |
|
|
Three Months Ended |
|
|
Three Months Ended |
|
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|
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GAAP |
|
|
Adj. |
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Non-GAAP |
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GAAP |
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Adj. |
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Non-GAAP |
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Cloud and software |
|
$ |
134 |
|
|
$ |
(134 |
) |
|
$ |
— |
|
|
$ |
156 |
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|
$ |
(156 |
) |
|
$ |
— |
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Hardware |
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|
6 |
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(6 |
) |
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|
— |
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7 |
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|
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(7 |
) |
|
|
— |
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Services |
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|
51 |
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(51 |
) |
|
|
— |
|
|
|
49 |
|
|
|
(49 |
) |
|
|
— |
|
Sales and marketing |
|
|
171 |
|
|
|
(171 |
) |
|
|
— |
|
|
|
177 |
|
|
|
(177 |
) |
|
|
— |
|
Research and development |
|
|
667 |
|
|
|
(667 |
) |
|
|
— |
|
|
|
647 |
|
|
|
(647 |
) |
|
|
— |
|
General and administrative |
|
|
98 |
|
|
|
(98 |
) |
|
|
— |
|
|
|
88 |
|
|
|
(88 |
) |
|
|
— |
|
Total stock-based compensation |
|
$ |
1,127 |
|
|
$ |
(1,127 |
) |
|
$ |
— |
|
|
$ |
1,124 |
|
|
$ |
(1,124 |
) |
|
$ |
— |
|
Remainder of fiscal 2027 |
|
$ |
529 |
|
Fiscal 2028 |
|
|
694 |
|
Fiscal 2029 |
|
|
620 |
|
Fiscal 2030 |
|
|
582 |
|
Fiscal 2031 |
|
|
377 |
|
Fiscal 2032 |
|
|
182 |
|
Thereafter |
|
|
43 |
|
Total intangible assets, net |
|
$ |
3,027 |
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* |
Not meaningful |
2
ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in millions)
|
|
August 31, |
|
|
May 31, |
|
||
ASSETS |
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|
|
|
|
|
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Current Assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
36,369 |
|
|
$ |
31,289 |
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Marketable securities |
|
|
708 |
|
|
|
605 |
|
Trade receivables, net |
|
|
11,394 |
|
|
|
10,385 |
|
Prepaid expenses and other current assets |
|
|
7,159 |
|
|
|
4,288 |
|
Total Current Assets |
|
|
55,630 |
|
|
|
46,567 |
|
Non-Current Assets: |
|
|
|
|
|
|
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Property, plant and equipment, net |
|
|
127,845 |
|
|
|
99,957 |
|
Operating lease right-of-use assets |
|
|
33,967 |
|
|
|
29,690 |
|
Goodwill |
|
|
62,267 |
|
|
|
62,261 |
|
Deferred tax assets |
|
|
11,625 |
|
|
|
11,541 |
|
Other non-current assets |
|
|
11,925 |
|
|
|
11,743 |
|
Total Non-Current Assets |
|
|
247,629 |
|
|
|
215,192 |
|
TOTAL ASSETS |
|
$ |
303,259 |
|
|
$ |
261,759 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current Liabilities: |
|
|
|
|
|
|
||
Notes payable and other borrowings, current |
|
$ |
7,625 |
|
|
$ |
7,199 |
|
Accounts payable |
|
|
11,063 |
|
|
|
10,977 |
|
Accrued compensation and related benefits |
|
|
1,760 |
|
|
|
2,225 |
|
Deferred revenues |
|
|
14,686 |
|
|
|
9,916 |
|
Other current liabilities |
|
|
12,380 |
|
|
|
11,447 |
|
Total Current Liabilities |
|
|
47,514 |
|
|
|
41,764 |
|
Non-Current Liabilities: |
|
|
|
|
|
|
||
Notes payable and other borrowings, non-current |
|
|
117,712 |
|
|
|
122,342 |
|
Income taxes payable |
|
|
12,060 |
|
|
|
11,771 |
|
Operating lease liabilities |
|
|
30,594 |
|
|
|
26,648 |
|
Other non-current liabilities |
|
|
28,183 |
|
|
|
16,178 |
|
Total Non-Current Liabilities |
|
|
188,549 |
|
|
|
176,939 |
|
Stockholders’ Equity |
|
|
67,196 |
|
|
|
43,056 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
303,259 |
|
|
$ |
261,759 |
|
3
ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)
|
Three Months Ended August 31, |
|
|||||
|
2026 |
|
|
2025 |
|
||
Cash Flows From Operating Activities: |
|
|
|
|
|
||
Net income |
$ |
4,760 |
|
|
$ |
2,927 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
||
Depreciation |
|
3,156 |
|
|
|
1,351 |
|
Amortization of intangible assets |
|
202 |
|
|
|
420 |
|
Deferred income taxes |
|
(73 |
) |
|
|
515 |
|
Stock-based compensation |
|
1,127 |
|
|
|
1,124 |
|
Other, net |
|
(4 |
) |
|
|
164 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
||
Increase in trade receivables, net |
|
(1,009 |
) |
|
|
(245 |
) |
Decrease in prepaid expenses and other assets |
|
114 |
|
|
|
59 |
|
Decrease in accounts payable and other liabilities |
|
(1,076 |
) |
|
|
(334 |
) |
Increase (decrease) in income taxes payable |
|
546 |
|
|
|
(391 |
) |
Increase in deferred revenues from customer prepayments with significant financing component |
|
11,363 |
|
|
|
— |
|
Increase in other deferred revenues |
|
3,997 |
|
|
|
2,550 |
|
Net cash provided by operating activities |
|
23,103 |
|
|
|
8,140 |
|
Cash Flows From Investing Activities: |
|
|
|
|
|
||
Purchases of marketable securities and other investments |
|
(306 |
) |
|
|
(471 |
) |
Proceeds from sales and maturities of marketable securities and other investments |
|
225 |
|
|
|
255 |
|
Capital expenditures |
|
(28,499 |
) |
|
|
(8,502 |
) |
Net cash used for investing activities |
|
(28,580 |
) |
|
|
(8,718 |
) |
Cash Flows From Financing Activities: |
|
|
|
|
|
||
Proceeds from issuances of common stock via at-the-market program, net of issuance costs |
|
19,909 |
|
|
|
— |
|
Net proceeds from employee stock programs |
|
41 |
|
|
|
1,153 |
|
Payments of dividends to stockholders |
|
(1,565 |
) |
|
|
(1,413 |
) |
Repayments of commercial paper, net |
|
— |
|
|
|
(238 |
) |
(Repayments of) proceeds from short-term financing related to capital expenditures, net |
|
(830 |
) |
|
|
1,958 |
|
Repayments of senior notes, term loan credit agreements and other borrowings |
|
(4,202 |
) |
|
|
(1,052 |
) |
Other financing activities, net |
|
(242 |
) |
|
|
(198 |
) |
Net cash provided by financing activities |
|
13,111 |
|
|
|
210 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
11 |
|
|
|
27 |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
7,645 |
|
|
|
(341 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
31,289 |
|
|
|
10,786 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
38,934 |
|
|
$ |
10,445 |
|
4
ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
FREE CASH FLOW (1)
($ in millions)
|
|
Fiscal 2026 |
|
|
Fiscal 2027 |
|
||||||||||||||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
TOTAL |
|
|
Q1 |
|
Q2 |
Q3 |
Q4 |
TOTAL |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
GAAP Operating Cash Flow |
|
$ |
8,140 |
|
$ |
2,066 |
|
$ |
7,151 |
|
$ |
14,620 |
|
$ |
31,977 |
|
|
$ |
23,103 |
|
|
|
|
$ |
23,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Capital Expenditures |
|
|
(8,502 |
) |
|
(12,033 |
) |
|
(18,635 |
) |
|
(16,493 |
) |
|
(55,663 |
) |
|
|
(28,499 |
) |
|
|
|
|
(28,499 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Free Cash Flow |
|
$ |
(362 |
) |
$ |
(9,967 |
) |
$ |
(11,484 |
) |
$ |
(1,873 |
) |
$ |
(23,686 |
) |
|
$ |
(5,396 |
) |
|
|
|
$ |
(5,396 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating Cash Flow % Growth over prior year |
|
10% |
|
58% |
|
21% |
|
137% |
|
54% |
|
|
184% |
|
|
|
|
184% |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
GAAP Net Income |
|
$ |
2,927 |
|
$ |
6,135 |
|
$ |
3,721 |
|
$ |
4,304 |
|
$ |
17,087 |
|
|
$ |
4,760 |
|
|
|
|
$ |
4,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating Cash Flow as a % of Net Income |
|
278% |
|
34% |
|
192% |
|
340% |
|
187% |
|
|
485% |
|
|
|
|
485% |
|
|||||||
ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
NET CASH OUTLAY FOR CAPITAL EXPENDITURES (1)
($ in millions)
|
|
Fiscal 2026 |
|
|
Fiscal 2027 |
|
||||||||||||||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
TOTAL |
|
|
Q1 |
|
Q2 |
Q3 |
Q4 |
TOTAL |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Capital Expenditures |
|
$ |
8,502 |
|
$ |
12,033 |
|
$ |
18,635 |
|
$ |
16,493 |
|
$ |
55,663 |
|
|
$ |
28,499 |
|
|
|
|
$ |
28,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Less: Other Short-Term Financing Cash Flow Related to Capital Expenditures (2) |
|
|
(1,958 |
) |
|
760 |
|
|
(1,469 |
) |
|
(678 |
) |
|
(3,345 |
) |
|
|
830 |
|
|
|
|
|
830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Less: Customer Prepayments with Significant Financing Component for Capital Expenditures (3) |
|
|
— |
|
|
— |
|
|
— |
|
|
(4,592 |
) |
|
(4,592 |
) |
|
|
(11,363 |
) |
|
|
|
|
(11,363 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net Cash Outlay for Capital Expenditures |
|
$ |
6,544 |
|
$ |
12,793 |
|
$ |
17,166 |
|
$ |
11,223 |
|
$ |
47,726 |
|
|
$ |
17,966 |
|
|
|
|
$ |
17,966 |
|
5
ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1)
($ in millions)
|
|
Fiscal 2026 |
|
|
Fiscal 2027 |
|
||||||||||||||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
TOTAL |
|
|
Q1 |
|
Q2 |
Q3 |
Q4 |
TOTAL |
|
|||||||
REVENUES BY OFFERINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cloud |
|
$ |
7,186 |
|
$ |
7,977 |
|
$ |
8,914 |
|
$ |
9,913 |
|
$ |
33,989 |
|
|
$ |
11,607 |
|
|
|
|
$ |
11,607 |
|
Software license |
|
|
766 |
|
|
939 |
|
|
1,150 |
|
|
1,881 |
|
|
4,737 |
|
|
|
655 |
|
|
|
|
|
655 |
|
Software support |
|
|
4,955 |
|
|
4,938 |
|
|
4,969 |
|
|
4,943 |
|
|
19,804 |
|
|
|
4,895 |
|
|
|
|
|
4,895 |
|
Software |
|
|
5,721 |
|
|
5,877 |
|
|
6,119 |
|
|
6,824 |
|
|
24,541 |
|
|
|
5,550 |
|
|
|
|
|
5,550 |
|
Hardware |
|
|
670 |
|
|
776 |
|
|
714 |
|
|
924 |
|
|
3,084 |
|
|
|
774 |
|
|
|
|
|
774 |
|
Services |
|
|
1,349 |
|
|
1,428 |
|
|
1,443 |
|
|
1,523 |
|
|
5,743 |
|
|
|
1,414 |
|
|
|
|
|
1,414 |
|
Total revenues |
|
$ |
14,926 |
|
$ |
16,058 |
|
$ |
17,190 |
|
$ |
19,184 |
|
$ |
67,357 |
|
|
$ |
19,345 |
|
|
|
|
$ |
19,345 |
|
AS REPORTED REVENUE GROWTH RATES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cloud |
|
28% |
|
34% |
|
44% |
|
47% |
|
39% |
|
|
62% |
|
|
|
|
62% |
|
|||||||
Software license |
|
(12%) |
|
(21%) |
|
2% |
|
(6%) |
|
(9%) |
|
|
(15%) |
|
|
|
|
(15%) |
|
|||||||
Software support |
|
1% |
|
1% |
|
4% |
|
0% |
|
1% |
|
|
(1%) |
|
|
|
|
(1%) |
|
|||||||
Software |
|
(1%) |
|
(3%) |
|
3% |
|
(2%) |
|
(1%) |
|
|
(3%) |
|
|
|
|
(3%) |
|
|||||||
Hardware |
|
2% |
|
7% |
|
2% |
|
9% |
|
5% |
|
|
15% |
|
|
|
|
15% |
|
|||||||
Services |
|
7% |
|
7% |
|
12% |
|
13% |
|
10% |
|
|
5% |
|
|
|
|
5% |
|
|||||||
Total revenues |
|
12% |
|
14% |
|
22% |
|
21% |
|
17% |
|
|
30% |
|
|
|
|
30% |
|
|||||||
CONSTANT CURRENCY REVENUE GROWTH RATES (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cloud |
|
27% |
|
33% |
|
41% |
|
46% |
|
37% |
|
|
61% |
|
|
|
|
61% |
|
|||||||
Software license |
|
(13%) |
|
(23%) |
|
(2%) |
|
(6%) |
|
(10%) |
|
|
(14%) |
|
|
|
|
(14%) |
|
|||||||
Software support |
|
(1%) |
|
0% |
|
0% |
|
(1%) |
|
(1%) |
|
|
(1%) |
|
|
|
|
(1%) |
|
|||||||
Software |
|
(2%) |
|
(5%) |
|
(1%) |
|
(3%) |
|
(3%) |
|
|
(3%) |
|
|
|
|
(3%) |
|
|||||||
Hardware |
|
1% |
|
5% |
|
(2%) |
|
7% |
|
3% |
|
|
16% |
|
|
|
|
16% |
|
|||||||
Services |
|
5% |
|
6% |
|
8% |
|
12% |
|
8% |
|
|
5% |
|
|
|
|
5% |
|
|||||||
Total revenues |
|
11% |
|
13% |
|
18% |
|
20% |
|
16% |
|
|
30% |
|
|
|
|
30% |
|
|||||||
CLOUD REVENUES BY OFFERINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cloud applications |
|
$ |
3,839 |
|
$ |
3,898 |
|
$ |
4,026 |
|
$ |
4,126 |
|
$ |
15,888 |
|
|
$ |
4,219 |
|
|
|
|
$ |
4,219 |
|
Cloud infrastructure |
|
|
3,347 |
|
|
4,079 |
|
|
4,888 |
|
|
5,787 |
|
|
18,101 |
|
|
|
7,388 |
|
|
|
|
|
7,388 |
|
Total cloud revenues |
|
$ |
7,186 |
|
$ |
7,977 |
|
$ |
8,914 |
|
$ |
9,913 |
|
$ |
33,989 |
|
|
$ |
11,607 |
|
|
|
|
$ |
11,607 |
|
AS REPORTED REVENUE GROWTH RATES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cloud applications |
|
11% |
|
11% |
|
13% |
|
10% |
|
11% |
|
|
10% |
|
|
|
|
10% |
|
|||||||
Cloud infrastructure |
|
55% |
|
68% |
|
84% |
|
93% |
|
77% |
|
|
121% |
|
|
|
|
121% |
|
|||||||
Total cloud revenues |
|
28% |
|
34% |
|
44% |
|
47% |
|
39% |
|
|
62% |
|
|
|
|
62% |
|
|||||||
CONSTANT CURRENCY REVENUE GROWTH RATES (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cloud applications |
|
10% |
|
11% |
|
11% |
|
9% |
|
10% |
|
|
10% |
|
|
|
|
10% |
|
|||||||
Cloud infrastructure |
|
54% |
|
66% |
|
81% |
|
92% |
|
75% |
|
|
120% |
|
|
|
|
120% |
|
|||||||
Total cloud revenues |
|
27% |
|
33% |
|
41% |
|
46% |
|
37% |
|
|
61% |
|
|
|
|
61% |
|
|||||||
GEOGRAPHIC REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Americas |
|
$ |
9,662 |
|
$ |
10,467 |
|
$ |
11,361 |
|
$ |
12,988 |
|
$ |
44,478 |
|
|
$ |
13,711 |
|
|
|
|
$ |
13,711 |
|
Europe/Middle East/Africa |
|
|
3,481 |
|
|
3,760 |
|
|
3,964 |
|
|
4,093 |
|
|
15,297 |
|
|
|
3,726 |
|
|
|
|
|
3,726 |
|
Asia Pacific |
|
|
1,783 |
|
|
1,831 |
|
|
1,865 |
|
|
2,103 |
|
|
7,582 |
|
|
|
1,908 |
|
|
|
|
|
1,908 |
|
Total revenues |
|
$ |
14,926 |
|
$ |
16,058 |
|
$ |
17,190 |
|
$ |
19,184 |
|
$ |
67,357 |
|
|
$ |
19,345 |
|
|
|
|
$ |
19,345 |
|
6
APPENDIX A
ORACLE CORPORATION
Q1 FISCAL 2027 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain significant expenses including stock-based compensation, expenses related to acquisitions, restructuring and certain other operating expenses, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects related to each of the below items except for the impact of the U.S. One, Big, Beautiful Bill Act:
• Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses, income tax effects and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.
• Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses, income tax effects and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.
• Restructuring and other expenses: We have excluded the effect of restructuring and other expenses from our non-GAAP operating expenses, income tax effects and net income measures. We incurred expenses in connection with our restructuring activities and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Restructuring and other expenses consist of employee severance costs and other exit costs related to our restructuring activities, certain asset impairment charges and certain other operating items, net. We believe it is useful for investors to understand the effects of these items on our total operating expenses.
• Impact of the U.S. One, Big, Beautiful Bill Act (OBBBA): OBBBA was signed into law on July 4, 2025. We recorded a net tax expense of $958 million during the first quarter of fiscal 2026, primarily related to the remeasurement of a deferred tax liability previously recorded during fiscal 2021, as part of the partial realignment of our legal entity structure. We have excluded the impact of this charge from our non-GAAP income taxes and net income measures in the first quarter of fiscal 2026. We believe making these adjustments provides insight to our operating performance and comparability to past operating results.
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