Short-term deferred revenues were $9.9 billion. Over the last twelve months, operating cash flow was $22.3 billion, up 10% in USD.
Earnings Conference Call and Webcast
About Oracle
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.
Q2 Remaining Performance Obligations $523 billion, up 438% in USD
Q2 GAAP Earnings per Share up 91% to $2.10, Non-GAAP Earnings per Share up 54% to $2.26
Q2 Total Revenue $16.1 billion, up 14% in USD and up 13% in constant currency
Q2 Cloud Revenue (IaaS plus SaaS) $8.0 billion, up 34% in USD and up 33% in constant currency
Q2 Cloud Infrastructure (IaaS) Revenue $4.1 billion, up 68% in USD and up 66% in constant currency
Q2 Cloud Application (SaaS) Revenue $3.9 billion, up 11% in both USD and constant currency
Q2 Fusion Cloud ERP (SaaS) Revenue $1.1 billion, up 18% in USD and up 17% in constant currency
Q2 NetSuite Cloud ERP (SaaS) Revenue $1.0 billion, up 13% in both USD and constant currency
AUSTIN, Texas, Dec. 10, 2025 /PRNewswire/ -- Oracle Corporation (NYSE:ORCL) today announced fiscal 2026 Q2 results. Total Remaining Performance Obligations were up 438% year-over-year in USD to $523 billion. Total quarterly revenues were up 14% in USD, and up 13% in constant currency to $16.1 billion. Cloud revenues were up 34% in USD, and up 33% in constant currency to $8.0 billion. Software revenues were down 3% in USD, and down 5% in constant currency to $5.9 billion.
Q2 GAAP operating income was $4.7 billion. Non-GAAP operating income was $6.7 billion, up 10% year-over-year in USD and up 8% in constant currency. GAAP net income was $6.1 billion. Non-GAAP net income was $6.6 billion, up 57% in USD and up 54% in constant currency. Q2 GAAP earnings per share was $2.10, up 91% in USD and up 86% in constant currency. Non-GAAP earnings per share was $2.26, up 54% in USD and up 51% in constant currency.
"Remaining Performance Obligations (RPO) increased by $68 billion in Q2—up 15% sequentially to $523 billion—highlighted by new commitments from Meta, NVIDIA, and others," said Oracle Principal Financial Officer, Doug Kehring. "Q2 GAAP earnings per share was up 91% to $2.10, and non-GAAP earnings per share was up 54% to $2.26. Our GAAP and non-GAAP earnings per share were both positively impacted by a $2.7 billion pre-tax gain in the sale of Oracle's interest in our Ampere chip company."
"Oracle sold Ampere because we no longer think it is strategic for us to continue designing, manufacturing and using our own chips in our cloud datacenters," said Oracle Chairman and CTO, Larry Ellison. "We are now committed to a policy of chip neutrality where we work closely with all our CPU and GPU suppliers. Of course, we will continue to buy the latest GPUs from NVIDIA, but we need to be prepared and able to deploy whatever chips our customers want to buy. There are going to be a lot of changes in AI technology over the next few years and we must remain agile in response to those changes."
"Oracle is very good at building and running high-performance and cost-efficient cloud datacenters," said Oracle CEO, Clay Magouyrk. "For years Oracle has been investing in AI and building autonomous cloud software. Oracle's Autonomous Database and Autonomous Linux have been key to reducing human labor and human error in our datacenters. Because our datacenters are highly automated, we can build and run more of them. Oracle has over 211 live and planned regions worldwide—more than any of our cloud competitors. We are more than halfway through building 72 Oracle Multicloud datacenters to be embedded throughout the Amazon, Google and Microsoft clouds. We are committed to Cloud Neutrality because we believe that our customers should be able to run their Oracle databases in any cloud they choose. That strategy is definitely paying off. Our Multicloud database business is our fastest growing business—up 817% in Q2."
"AI Training and selling AI Models are very big businesses," said Oracle CEO, Mike Sicilia. "But we think there is an even larger opportunity—embedding AI in a variety of different products. Oracle is in a unique position to embed AI in all three layers of our software products: our Cloud Datacenter software, our Autonomous Database and Analytic software, and our Applications software. All three of these Oracle software businesses are already big—AI will make them all better and bigger. AI allows us to automate complex multistep processes that were impossible to automate before AI. AI is enabling us to automate loan origination and risk quantification for banks and their customers. AI is enabling us to help doctors diagnose and care for their patients and manage the reimbursement process between healthcare providers and payers. All of the top five AI Models are in the Oracle Cloud. We have huge advantages over our applications competitors."
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 January 9, 2026, with a payment date of January 23, 2026.
A sample list of customers which purchased Oracle Cloud services during the quarter will be available at www.oracle.com/customers/earnings/.
A list of recent technical innovations and announcements is available at www.oracle.com/news/.
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/.
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.
"Safe Harbor" Statement: Statements in this press release relating to future plans, expectations, beliefs, intentions and prospects, including our plans to maintain chip neutrality, our ability to build and run high-performance and cost-efficient cloud datacenters and increase buildout of additional datacenters, the growth opportunity provided by embedding AI in a variety of our product and the benefits of AI generally 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 management of complex cloud and hardware offerings, including the sourcing of technologies and technology components such as graphic processing units; our ability to anticipate, plan for, secure and manage datacenter capacity; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions; 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; unfavorable legal proceedings, government investigations, and complex and changing laws and 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 December 10, 2025. Oracle undertakes no duty to update any statement in light of new information or future events.
ORACLE CORPORATION
Q2 FISCAL 2026 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
Three Months Ended November 30,
% Increase
% Increase
(Decrease)
2025
% of
2024
% of
(Decrease)
in Constant
Revenues
Revenues
in US $
Currency (1)
REVENUES
Cloud
$ 7,977
50 %
$ 5,937
42 %
34 %
33 %
Software
5,877
36 %
6,064
44 %
(3 %)
(5 %)
Hardware
776
5 %
728
5 %
7 %
5 %
Services
1,428
9 %
1,330
9 %
7 %
6 %
Total revenues
16,058
100 %
14,059
100 %
14 %
13 %
OPERATING EXPENSES
Cloud and software
3,990
25 %
2,746
19 %
45 %
45 %
Hardware
215
1 %
172
1 %
25 %
23 %
Services
1,169
7 %
1,167
8 %
0 %
(1 %)
Sales and marketing
2,149
13 %
2,190
16 %
(2 %)
(3 %)
Research and development
2,561
16 %
2,471
18 %
4 %
4 %
General and administrative
409
3 %
387
3 %
6 %
5 %
Amortization of intangible assets
407
3 %
591
4 %
(31 %)
(31 %)
Acquisition related and other
21
0 %
31
0 %
(33 %)
(35 %)
Restructuring
406
3 %
84
1 %
387 %
378 %
Total operating expenses
11,327
71 %
9,839
70 %
15 %
14 %
OPERATING INCOME
4,731
29 %
4,220
30 %
12 %
9 %
Interest expense
(1,057)
(7 %)
(866)
(6 %)
22 %
22 %
Non-operating income, net
2,668
17 %
36
0 %
*
*
INCOME BEFORE INCOME TAXES
6,342
39 %
3,390
24 %
87 %
82 %
Provision for income taxes
207
1 %
239
2 %
(14 %)
(16 %)
NET INCOME
$ 6,135
38 %
$ 3,151
22 %
95 %
89 %
EARNINGS PER SHARE:
Basic
$ 2.14
$ 1.13
Diluted
$ 2.10
$ 1.10
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic
2,864
2,790
Diluted
2,922
2,869
(1)
We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for
assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for
entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior
fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months
ended November 30, 2025 compared with the corresponding prior year period increased our total revenues by 1 percentage point, total operating expenses by 1 percentage point and
operating income by 3 percentage points.
*
Not meaningful
ORACLE CORPORATION
Q2 FISCAL 2026 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
Three Months Ended November 30,
% Increase (Decrease) in US $
% Increase (Decrease) in Constant Currency (2)
2025
2025
2024
2024
GAAP
Non-GAAP
GAAP
Non-GAAP
GAAP
Adj.
Non-GAAP
GAAP
Adj.
Non-GAAP
TOTAL REVENUES
$ 16,058
$ -
$ 16,058
$ 14,059
$ -
$ 14,059
14 %
14 %
13 %
13 %
TOTAL OPERATING EXPENSES
$ 11,327
$ (1,990)
$ 9,337
$ 9,839
$ (1,876)
$ 7,963
15 %
17 %
14 %
16 %
Stock-based compensation (3)
1,156
(1,156)
-
1,170
(1,170)
-
(1 %)
*
(1 %)
*
Amortization of intangible assets (4)
407
(407)
-
591
(591)
-
(31 %)
*
(31 %)
*
Acquisition related and other
21
(21)
-
31
(31)
-
(33 %)
*
(35 %)
*
Restructuring
406
(406)
-
84
(84)
-
387 %
*
378 %
*
OPERATING INCOME
$ 4,731
$ 1,990
$ 6,721
$ 4,220
$ 1,876
$ 6,096
12 %
10 %
9 %
8 %
OPERATING MARGIN %
29 %
42 %
30 %
43 %
(56) bp.
(150) bp.
(92) bp.
(171) bp.
INCOME TAX EFFECTS (5)
$ 207
$ 1,527
$ 1,734
$ 239
$ 820
$ 1,059
(14 %)
64 %
(16 %)
61 %
NET INCOME
$ 6,135
$ 463
$ 6,598
$ 3,151
$ 1,056
$ 4,207
95 %
57 %
89 %
54 %
DILUTED EARNINGS PER SHARE
$ 2.10
$ 2.26
$ 1.10
$ 1.47
91 %
54 %
86 %
51 %
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
2,922
-
2,922
2,869
-
2,869
2 %
2 %
2 %
2 %
(1)
This presentation includes non-GAAP measures. Our non-GAAP 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. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures
and the material limitations on the usefulness of these measures, please see Appendix A.
(2)
We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses
performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into
United States dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.
(3)
Stock-based compensation was included in the following GAAP operating expense categories:
Three Months Ended
Three Months Ended
November 30, 2025
November 30, 2024
GAAP
Adj.
Non-GAAP
GAAP
Adj.
Non-GAAP
Cloud and software
$ 151
$ (151)
$ -
$ 158
$ (158)
$ -
Hardware
7
(7)
-
8
(8)
-
Services
51
(51)
-
53
(53)
-
Sales and marketing
185
(185)
-
195
(195)
-
Research and development
668
(668)
-
657
(657)
-
General and administrative
94
(94)
-
99
(99)
-
Total stock-based compensation
$ 1,156
$ (1,156)
$ -
$ 1,170
$ (1,170)
$ -
(4)
Estimated future annual amortization expense related to intangible assets as of November 30, 2025 was as follows:
Remainder of fiscal 2026
$ 812
Fiscal 2027
672
Fiscal 2028
635
Fiscal 2029
561
Fiscal 2030
522
Fiscal 2031
332
Thereafter
226
Total intangible assets, net
$ 3,760
(5)
Income tax effects were calculated reflecting an effective GAAP tax rate of 3.3% and 7.1% in the second quarter of fiscal 2026 and 2025, respectively, and an effective non-GAAP tax rate of 20.8% and 20.1% in the second quarter of
fiscal 2026 and 2025, respectively. The difference in our GAAP and non-GAAP tax rates in each of the second quarters of fiscal 2026 and 2025 was primarily due to the net tax effects related to stock-based compensation expense;
acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded
due to the partial realignment of our legal entity structure.
*
Not meaningful
ORACLE CORPORATION
Q2 FISCAL 2026 YEAR TO DATE FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
Six Months Ended November 30,
% Increase
% Increase
(Decrease)
2025
% of
2024
% of
(Decrease)
in Constant
Revenues
Revenues
in US $
Currency (1)
REVENUES
Cloud
$ 15,162
49 %
$ 11,559
42 %
31 %
30 %
Software
11,598
37 %
11,830
44 %
(2 %)
(4 %)
Hardware
1,446
5 %
1,383
5 %
5 %
3 %
Services
2,777
9 %
2,594
9 %
7 %
6 %
Total revenues
30,983
100 %
27,366
100 %
13 %
12 %
OPERATING EXPENSES
Cloud and software
7,597
24 %
5,344
20 %
42 %
42 %
Hardware
393
1 %
333
1 %
18 %
16 %
Services
2,268
7 %
2,314
8 %
(2 %)
(3 %)
Sales and marketing
4,211
14 %
4,226
15 %
0 %
(2 %)
Research and development
5,051
16 %
4,777
18 %
6 %
6 %
General and administrative
786
3 %
745
3 %
5 %
5 %
Amortization of intangible assets
826
3 %
1,215
4 %
(32 %)
(32 %)
Acquisition related and other
35
0 %
44
0 %
(21 %)
(24 %)
Restructuring
808
3 %
157
1 %
415 %
406 %
Total operating expenses
21,975
71 %
19,155
70 %
15 %
14 %
OPERATING INCOME
9,008
29 %
8,211
30 %
10 %
7 %
Interest expense
(1,980)
(7 %)
(1,708)
(6 %)
16 %
16 %
Non-operating income, net
2,741
9 %
57
0 %
*
*
INCOME BEFORE INCOME TAXES
9,769
31 %
6,560
24 %
49 %
44 %
Provision for income taxes (2)
707
2 %
480
2 %
47 %
43 %
NET INCOME
$ 9,062
29 %
$ 6,080
22 %
49 %
45 %
EARNINGS PER SHARE:
Basic
$ 3.19
$ 2.19
Diluted
$ 3.11
$ 2.13
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic
2,845
2,775
Diluted
2,916
2,860
(1)
We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information
to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this
information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States
dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during
the respective periods. Movements in international currencies relative to the United States dollar during the six months ended November 30, 2025 compared
with the corresponding prior year period increased our total revenues by 1 percentage point, total operating expenses by 1 percentage point and operating
income by 3 percentage points.
(2)
Provision for income taxes for the six months ended November 30, 2025 includes the impact of the U.S. One, Big, Beautiful Bill Act, which was signed into
law on July 4, 2025.
*
Not meaningful
ORACLE CORPORATION
Q2 FISCAL 2026 YEAR TO DATE FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
Six Months Ended November 30,
% Increase (Decrease) in US $
% Increase (Decrease) in Constant Currency (2)
2025
2025
2024
2024
GAAP
Non-GAAP
GAAP
Non-GAAP
GAAP
Adj.
Non-GAAP
GAAP
Adj.
Non-GAAP
TOTAL REVENUES
$ 30,983
$ -
$ 30,983
$ 27,366
$ -
$ 27,366
13 %
13 %
12 %
12 %
TOTAL OPERATING EXPENSES
$ 21,975
$ (3,949)
$ 18,026
$ 19,155
$ (3,592)
$ 15,563
15 %
16 %
14 %
15 %
Stock-based compensation (3)
2,280
(2,280)
-
2,176
(2,176)
-
5 %
*
5 %
*
Amortization of intangible assets (4)
826
(826)
-
1,215
(1,215)
-
(32 %)
*
(32 %)
*
Acquisition related and other
35
(35)
-
44
(44)
-
(21 %)
*
(24 %)
*
Restructuring
808
(808)
-
157
(157)
-
415 %
*
406 %
*
OPERATING INCOME
$ 9,008
$ 3,949
$ 12,957
$ 8,211
$ 3,592
$ 11,803
10 %
10 %
7 %
8 %
OPERATING MARGIN %
29 %
42 %
30 %
43 %
(93) bp.
(131) bp.
(136) bp.
(158) bp.
INCOME TAX EFFECTS (5)
$ 707
$ 2,131
$ 2,838
$ 480
$ 1,500
$ 1,980
47 %
43 %
43 %
40 %
NET INCOME
$ 9,062
$ 1,818
$ 10,880
$ 6,080
$ 2,092
$ 8,172
49 %
33 %
45 %
31 %
DILUTED EARNINGS PER SHARE
$ 3.11
$ 3.73
$ 2.13
$ 2.86
46 %
31 %
42 %
28 %
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
2,916
-
2,916
2,860
-
2,860
2 %
2 %
2 %
2 %
(1)
This presentation includes non-GAAP measures. Our non-GAAP 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. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness
of these measures, please see Appendix A.
(2)
We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the
effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect
on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual exchange
rates in effect during the respective periods.
(3)
Stock-based compensation was included in the following GAAP operating expense categories:
Six Months Ended
Six Months Ended
November 30, 2025
November 30, 2024
GAAP
Adj.
Non-GAAP
GAAP
Adj.
Non-GAAP
Cloud and software
$ 307
$ (307)
$ -
$ 299
$ (299)
$ -
Hardware
14
(14)
-
14
(14)
-
Services
100
(100)
-
96
(96)
-
Sales and marketing
362
(362)
-
356
(356)
-
Research and development
1,314
(1,314)
-
1,226
(1,226)
-
General and administrative
183
(183)
-
185
(185)
-
Total stock-based compensation
$ 2,280
$ (2,280)
$ -
$ 2,176
$ (2,176)
$ -
(4)
Estimated future annual amortization expense related to intangible assets as of November 30, 2025 was as follows:
Remainder of fiscal 2026
$ 812
Fiscal 2027
672
Fiscal 2028
635
Fiscal 2029
561
Fiscal 2030
522
Fiscal 2031
332
Thereafter
226
Total intangible assets, net
$ 3,760
(5)
Income tax effects were calculated reflecting an effective GAAP tax rate of 7.2% and 7.3% in the first half of fiscal 2026 and 2025, respectively, and an effective non-GAAP tax rate of 20.7% and 19.5% in the first half of fiscal 2026 and 2025, respectively. The
difference in our GAAP and non-GAAP tax rates in each of the first half of fiscal 2026 and 2025 was primarily due to the net tax effects related to stock-based compensation expense; acquisition related and other items, including the tax effects on amortization
of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure; and, for the first half of fiscal 2026, the impact
of the U.S. One, Big, Beautiful Bill Act (refer to Appendix A for additional information).
*
Not meaningful
ORACLE CORPORATION
Q2 FISCAL 2026 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in millions)
November 30,
May 31,
2025
2025
ASSETS
Current Assets:
Cash and cash equivalents
$ 19,241
$ 10,786
Marketable securities
525
417
Trade receivables, net
9,440
8,558
Prepaid expenses and other current assets
5,160
4,818
Total Current Assets
34,366
24,579
Non-Current Assets:
Property, plant and equipment, net
67,875
43,522
Intangible assets, net
3,760
4,587
Goodwill
62,207
62,207
Deferred tax assets
11,531
11,877
Other non-current assets
25,245
21,589
Total Non-Current Assets
170,618
143,782
TOTAL ASSETS
$ 204,984
$ 168,361
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes payable and other borrowings, current
$ 8,091
$ 7,271
Accounts payable
10,140
5,113
Accrued compensation and related benefits
1,947
2,243
Deferred revenues
9,940
9,387
Other current liabilities
7,677
8,629
Total Current Liabilities
37,795
32,643
Non-Current Liabilities:
Notes payable and other borrowings, non-current
99,984
85,297
Income taxes payable
10,885
10,269
Operating lease liabilities
16,311
11,536
Other non-current liabilities
9,552
7,647
Total Non-Current Liabilities
136,732
114,749
Stockholders' Equity
30,457
20,969
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 204,984
$ 168,361
ORACLE CORPORATION
Q2 FISCAL 2026 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)
Six Months Ended November 30,
2025
2024
Cash Flows From Operating Activities:
Net income
$ 9,062
$ 6,080
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
3,055
1,712
Amortization of intangible assets
826
1,215
Deferred income taxes
332
(601)
Stock-based compensation
2,280
2,176
Gains from investments and other, net
(2,227)
298
Changes in operating assets and liabilities:
Increase in trade receivables, net
(900)
(451)
Decrease in prepaid expenses and other assets
1,285
676
Decrease in accounts payable and other liabilities
(1,366)
(1,143)
Decrease in income taxes payable
(2,608)
(1,685)
Increase in deferred revenues
467
454
Net cash provided by operating activities
10,206
8,731
Cash Flows From Investing Activities:
Purchases of marketable securities and other investments
(634)
(636)
Proceeds from sales and maturities of marketable securities and other investments
4,737
356
Capital expenditures
(20,535)
(6,273)
Net cash used for investing activities
(16,432)
(6,553)
Cash Flows From Financing Activities:
Payments for repurchases of common stock
(95)
(300)
Proceeds from issuances of common stock
1,308
307
Shares repurchased for tax withholdings upon vesting of restricted stock-based awards
(109)
(898)
Payments of dividends to stockholders
(2,848)
(2,221)
Proceeds from (repayments of) commercial paper and other short-term financing, net
886
(396)
Proceeds from issuances of senior notes and term loan credit agreements, net of issuance costs
17,880
11,837
Repayments of senior notes, term loan credit agreements and other borrowings
(2,122)
(9,700)
Other financing activities, net
(203)
(276)
Net cash provided by (used for) financing activities
14,697
(1,647)
Effect of exchange rate changes on cash and cash equivalents
(16)
(44)
Net increase in cash and cash equivalents
8,455
487
Cash and cash equivalents at beginning of period
10,786
10,454
Cash and cash equivalents at end of period
$ 19,241
$ 10,941
ORACLE CORPORATION
Q2 FISCAL 2026 FINANCIAL RESULTS
FREE CASH FLOW - TRAILING FOUR-QUARTERS (1)
($ in millions)
Fiscal 2025
Fiscal 2026
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
GAAP Operating Cash Flow
$ 19,126
$ 20,287
$ 20,745
$ 20,821
$ 21,534
$ 22,296
Capital Expenditures
(7,855)
(10,745)
(14,933)
(21,215)
(27,414)
(35,477)
Free Cash Flow
$ 11,271
$ 9,542
$ 5,812
$ (394)
$ (5,880)
$ (13,181)
Operating Cash Flow % Growth over prior year
8 %
19 %
14 %
12 %
13 %
10 %
Free Cash Flow % Growth over prior year
19 %
(6 %)
(53 %)
(103 %)
(152 %)
(238 %)
GAAP Net Income
$ 10,976
$ 11,624
$ 12,160
$ 12,443
$ 12,441
$ 15,425
Operating Cash Flow as a % of Net Income
174 %
175 %
171 %
167 %
173 %
145 %
Free Cash Flow as a % of Net Income
103 %
82 %
48 %
(3 %)
(47 %)
(85 %)
(1) To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows on a trailing four-quarter basis to
analyze cash flow generated from operations. We believe free cash flow is also useful as one of the bases for comparing our performance with our
competitors. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to net income as an indicator
of our performance, or as an alternative to cash flows from operating activities as a measure of liquidity.
ORACLE CORPORATION
Q2 FISCAL 2026 FINANCIAL RESULTS
SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1)
($ in millions)
Fiscal 2025
Fiscal 2026
Q1
Q2
Q3
Q4
TOTAL
Q1
Q2
Q3
Q4
TOTAL
REVENUES BY OFFERINGS
Cloud
$ 5,623
$ 5,937
$ 6,210
$ 6,737
$ 24,506
$ 7,186
$ 7,977
$ 15,162
Software license
870
1,195
1,129
2,007
5,201
766
939
1,705
Software support
4,896
4,869
4,797
4,961
19,523
4,955
4,938
9,893
Software
5,766
6,064
5,926
6,968
24,724
5,721
5,877
11,598
Hardware
655
728
703
850
2,936
670
776
1,446
Services
1,263
1,330
1,291
1,348
5,233
1,349
1,428
2,777
Total revenues
$ 13,307
$ 14,059
$ 14,130
$ 15,903
$ 57,399
$ 14,926
$ 16,058
$ 30,983
AS REPORTED REVENUE GROWTH RATES
Cloud
21 %
24 %
23 %
27 %
24 %
28 %
34 %
31 %
Software license
7 %
1 %
(10 %)
9 %
2 %
(12 %)
(21 %)
(17 %)
Software support
0 %
0 %
(2 %)
1 %
0 %
1 %
1 %
1 %
Software
1 %
0 %
(4 %)
3 %
0 %
(1 %)
(3 %)
(2 %)
Hardware
(8 %)
(4 %)
(7 %)
1 %
(4 %)
2 %
7 %
5 %
Services
(9 %)
(3 %)
(1 %)
(2 %)
(4 %)
7 %
7 %
7 %
Total revenues
7 %
9 %
6 %
11 %
8 %
12 %
14 %
13 %
CONSTANT CURRENCY REVENUE GROWTH RATES (2)
Cloud
22 %
24 %
25 %
27 %
24 %
27 %
33 %
30 %
Software license
8 %
3 %
(8 %)
8 %
3 %
(13 %)
(23 %)
(19 %)
Software support
0 %
0 %
0 %
0 %
0 %
(1 %)
0 %
0 %
Software
1 %
0 %
(2 %)
2 %
1 %
(2 %)
(5 %)
(4 %)
Hardware
(8 %)
(3 %)
(5 %)
0 %
(4 %)
1 %
5 %
3 %
Services
(8 %)
(3 %)
1 %
(2 %)
(3 %)
5 %
6 %
6 %
Total revenues
8 %
9 %
8 %
11 %
9 %
11 %
13 %
12 %
CLOUD REVENUES BY OFFERINGS
Cloud applications
$ 3,469
$ 3,503
$ 3,558
$ 3,742
$ 14,272
$ 3,839
$ 3,898
$ 7,736
Cloud infrastructure
2,154
2,434
2,652
2,995
10,234
3,347
4,079
7,426
Total cloud revenues
$ 5,623
$ 5,937
$ 6,210
$ 6,737
$ 24,506
$ 7,186
$ 7,977
$ 15,162
AS REPORTED REVENUE GROWTH RATES
Cloud applications
10 %
10 %
9 %
12 %
10 %
11 %
11 %
11 %
Cloud infrastructure
45 %
52 %
49 %
52 %
50 %
55 %
68 %
62 %
Total cloud revenues
21 %
24 %
23 %
27 %
24 %
28 %
34 %
31 %
CONSTANT CURRENCY REVENUE GROWTH RATES (2)
Cloud applications
10 %
10 %
10 %
11 %
10 %
10 %
11 %
10 %
Cloud infrastructure
46 %
52 %
51 %
52 %
51 %
54 %
66 %
61 %
Total cloud revenues
22 %
24 %
25 %
27 %
24 %
27 %
33 %
30 %
GEOGRAPHIC REVENUES
Americas
$ 8,372
$ 8,933
$ 9,000
$ 10,034
$ 36,339
$ 9,662
$ 10,467
$ 20,129
Europe/Middle East/Africa
3,228
3,381
3,421
3,996
14,025
3,481
3,760
7,240
Asia Pacific
1,707
1,745
1,709
1,873
7,035
1,783
1,831
3,614
Total revenues
$ 13,307
$ 14,059
$ 14,130
$ 15,903
$ 57,399
$ 14,926
$ 16,058
$ 30,983
(1) The sum of the quarterly information presented may vary from the year-to-date information presented due to rounding.
(2) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide
a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and
comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect
on May 31, 2025 and 2024 for the fiscal 2026 and fiscal 2025 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in
effect during the respective periods.
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, 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.
Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses, income tax effects and net income measures. We incurred expenses in connection with our acquisitions 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. Acquisition related and other expenses consisted of personnel-related costs for transitional and certain other employees, certain business combination adjustments including certain adjustments after the measurement period has ended, and certain other operating items, net. Restructuring expenses consisted of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. Although acquisition related and other expenses and restructuring expenses may diminish over time with respect to past acquisitions and/or strategic initiatives, we generally will incur certain of these expenses in connection with any future acquisitions and/or strategic initiatives.
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 half of fiscal 2026. We believe making these adjustments provides insight to our operating performance and comparability to past operating results.
