ORCL · Q1 2026 Earnings

Bullish

Oracle Corporation

Reported September 9, 2025

30-second summary

30-second take: Oracle's headline P&L was unremarkable — revenue $14.93B (+12% YoY), non-GAAP EPS $1.47 — but the booking and guidance disclosures reset the story. RPO jumped 359% YoY to $455B and management put hard dollar figures on a five-year OCI ramp ($18B → $32B → $73B → $114B → $144B from FY26 through FY30), replacing the prior "growth rate" framing with absolute commitments. The print is about forward bookings and the multi-year OCI contract pipeline; reported IaaS revenue growth of 55% YoY was a modest acceleration from Q4 FY25's 52%, and LTM free cash flow was -$5.88B as capex builds against the guided ramp.

Headline numbers

EPS

Q1 FY2026

$1.47

Revenue

Q1 FY2026

$14.93B

+12.0% YoY

Free cash flow

Q1 FY2026

$-5.88B

Operating margin

Q1 FY2026

29.0%

Key financials

Q1 FY2026

Metric	Q1 FY2026	YoY	Q4 FY2025	QoQ
Revenue	$14.93B	+12.0%	$15.90B	-6.1%
EPS	$1.47	—	$1.70	-13.5%
Operating margin	29.0%	—	32.1%	-310bps
Free cash flow	$-5.88B	—	$-0.39B	-1392.4%

Guidance

Oracle issues ambitious multi-year Cloud Infrastructure guidance ($18B→$32B→$73B→$114B→$144B through FY30) while reaffirming/raising FY26 growth targets; RPO trajectory upside evident at $455B YTD.

Guidance is issued for both next quarter and the full year. Both may appear below.

New guidance

Metric	Period	Guide	YoY
Cloud Infrastructure Revenue	FY 2026	$18 billion	—
Cloud Infrastructure Revenue	FY 2027	$32 billion	78% YoY
Cloud Infrastructure Revenue	FY 2028	$73 billion	128% YoY
Cloud Infrastructure Revenue	FY 2029	$114 billion	56% YoY
Cloud Infrastructure Revenue	FY 2030	$144 billion	26% YoY

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
RPO (Remaining Performance Obligations)	FY 2026	more than 100% growth	likely to exceed half-a-trillion dollars	Raised to $500B+ (absolute); confirms >100% growth trajectory	Raised
OCI Consumption Revenue Growth	FY 2026	faster than Q4 FY25 62% growth	Q1 FY26 Cloud Infrastructure (IaaS) 55% growth; expected acceleration implied	Q1 reported 55% growth; slightly slower than Q4 FY25 62%, but company signals continued acceleration ahead	Raised

Reaffirmed unchanged this quarter: Total Cloud Growth Rate (over 40%), MultiCloud Revenue Growth (triple-digit implied; substantial quarterly growth expected)

Segment performance

Q1 FY2026

Segment	Q1 FY2026	YoY
Cloud Infrastructure (IaaS)	$3.347B	+55.0%
Cloud Applications (SaaS)	$3.839B	+11.0%
Fusion Cloud ERP (SaaS)	$1B	+17.0%
NetSuite Cloud ERP (SaaS)	$1B	+16.0%
Software License	$0.766B	-12.0%
Software Support	$4.955B	+1.0%
Hardware	$0.67B	+2.0%
Services	$1.349B	+7.0%
Cloud Revenue Percentage of Total	48%	—

Platform metrics

Q1 FY2026

Segment	Q1 FY2026
Remaining Performance Obligations (RPO)	$455 billion
RPO Growth	359% YoY
Short-term Deferred Revenues	$12.1 billion
MultiCloud Database Revenue Growth	1,529% YoY

Profitability

Q1 FY2026

Segment	Q1 FY2026
Non-GAAP Operating Margin	42%
Operating Cash Flow (LTM)	$21.5 billion
Operating Cash Flow Growth (LTM)	13% YoY

Other KPIs

Q1 FY2026

Segment	Q1 FY2026	YoY
Americas	$9.662B	+15.4%
Europe/Middle East/Africa	$3.481B	+7.8%
Asia Pacific	$1.783B	+4.4%

Management tone

Transcript not available for this brief; tone analysis is press-release-derived only.

The most material qualitative shift is the move from percentage-based forward language ("over 70% IaaS growth", "over 40% total cloud growth") to absolute-dollar, multi-year commitments. Management chose to publish a specific five-year OCI revenue curve ending at $144B — a level of granularity not previously offered. The press release also elevates "AI Cloud Infrastructure" and "MultiCloud AI Database" as distinct demand drivers rather than features of a broader OCI story, and frames RPO ($455B, headed past $500B) as the primary anchor metric. The phrasing "we expect to sign-up several additional multi-billion-dollar customers" over the next few months is unusually specific for a forward-looking release.

What to watch into next quarter

OCI growth trajectory: Reported IaaS came in at 55% YoY in Q1 vs. 52% in Q4 FY25 — a modest acceleration. Management is committing to $18B FY26 (implying ~77% full-year growth), so the question is whether Q2 shows a sharper step-up or whether the ramp is back-half loaded.

RPO progression toward $500B: $455B at Q1. Watch the QoQ build — RPO needs to add roughly $45B over the next three quarters to hit the half-trillion marker, but the curve depends on the cadence of multi-billion-dollar customer signings management telegraphed.

Capex and free cash flow: LTM FCF was -$5.88B against LTM operating cash flow of $21.5B, with LTM capex of $27.4B. Watch the gap between capex commitments and the ramp in OCI consumption revenue — the FY28 $73B step requires capacity in place 12-18 months ahead.

MultiCloud database revenue disclosure: Management called out 1,529% YoY growth but did not disclose the absolute dollar base. Watch for a dollar figure that lets the multi-billion-dollar customer narrative be quantified.

Q2 dollar guidance: No explicit next-quarter revenue or EPS guide was provided. Watch whether this becomes a new disclosure pattern or simply a one-quarter omission masked by the multi-year reveal.

Sources

Oracle Corporation Q1 FY2026 Press Release (Exhibit 99.1), September 9, 2025 — https://www.sec.gov/Archives/edgar/data/1341439/000119312525199175/orcl-ex99_1.htm

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