tapebrief
ORCL · Q3 2026

ORCL · Q4 2026 Earnings

Bullish

Oracle Corporation

Reported June 10, 2026

30-second summary

30-second take: Q4 revenue grew 21% YoY to $19.18B (a 0.4% beat vs $19.10B consensus) and non-GAAP EPS of $2.11 beat the $1.96 consensus by 7.7%, but the print is again about the OCI step-up and the multi-year curve. Cloud Infrastructure revenue accelerated to +93% YoY (from +84% in Q3, +68% in Q2, +55% in Q1), RPO jumped to $638B (+$85B QoQ), and management reaffirmed FY27 revenue at $90B while raising FY27 non-GAAP EPS to $8.05 (+18% growth). The acceleration thesis is delivering — but FY26 free cash flow came in at -$23.7B (-35.2% FCF margin), confirming that the capex-versus-prepayment debate is now the single open question.

Headline numbers

EPS

Q4 FY2026

$2.11

+7.7% vs est.

Revenue

Q4 FY2026

$19.18B

+21.0% YoY

+0.4% vs est.

Operating margin

Q4 FY2026

32.0%

Key financials

Q4 FY2026
MetricQ4 FY2026Q4 FY2025YoYQ3 FY2026QoQ
Revenue$19.18B$15.90B+20.7%$17.20B+11.5%
EPS$2.11$1.70+24.1%$1.79+17.9%
Operating margin32.0%32.1%-10bps43.0%-1100bps

Guidance

FY2027 EPS guidance raised to $8.05 (18% growth) on back of Q4 beat; FY2027 revenue reaffirmed at $90B; Q1 FY2027 cloud revenue expected to accelerate to 57–64% YoY growth driven by AI infrastructure and Multicloud AI Database (404% Q4 growth).

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

Actuals vs prior guidance

MetricPeriodPrior guideActualΔResult
RevenueQ4 FY2026—$19.184Bno prior guide availableBeat
Non-GAAP EPSQ4 FY2026—$2.11no prior guide availableBeat
RevenueFY 2026—$67.357Bin-lineMet
Non-GAAP EPSFY 2026—$7.63in-lineMet

New guidance

MetricPeriodGuideYoY
Non-GAAP EPSQ1 FY2027$1.71 to $1.76 (USD); $1.72 to $1.76 (CC)17% to 20% (USD); 16% to 19% (CC)
Total Revenue Growth (YoY %)Q1 FY202727% to 29%27% to 29%
Total Cloud Revenue Growth (YoY %)Q1 FY202757% to 63% (CC), 58% to 64% (USD)57% to 63% (CC), 58% to 64% (USD)

Changes to prior guidance

MetricPeriodPrior guideNew guideΔResult
Non-GAAP EPS
FY 2027
$7.63$8.05+$0.42 (+5.5%); 18% growth guidanceRaised

Segment performance

Q4 FY2026
SegmentQ4 FY2026Q4 FY2025YoY
Cloud Infrastructure (IaaS)$5.787B$3B+92.9%
Cloud Applications (SaaS)$4.126B—+10.0%
Total Cloud$9.913B—+47.0%
Software$6.824B—-2.0%
Services$1.523B—+13.0%
Hardware$0.924B—+9.0%
Cloud IaaS YoY growth93% (Q4), 77% (FY2026)——
Cloud SaaS YoY growth10% (Q4), 11% (FY2026)——

Platform metrics

Q4 FY2026
SegmentQ4 FY2026Q4 FY2025YoY
Remaining Performance Obligations (RPO)$638 billion$138 billion—
RPO prepaid/customer-supplied GPU hardware$75 billion——
Oracle Multicloud AI Database growth404%——

Profitability

Q4 FY2026
SegmentQ4 FY2026
Operating Cash Flow$31.977 billion (FY2026)
Non-GAAP Operating Margin45% (Q4), 43% (FY2026)

Other KPIs

Q4 FY2026
SegmentQ4 FY2026Q4 FY2025YoY
Americas$12.988B$10.034B+29.4%
Europe/Middle East/Africa$4.093B$3.996B+2.4%
Quarterly Dividend per share$0.50——

Management tone

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

Narrative arc: Q4 FY25 acceleration promise → Q1 FY26 multi-year OCI curve reveal → Q2 FY26 chip neutrality + multicloud distribution → Q3 FY26 FY27 raise to $90B → Q4 FY26 EPS curve raised, RPO breakdown disclosed, healthcare AI introduced.

The shift from infrastructure dollars to earnings dollars is the most material change in framing. Three quarters ago Oracle was disclosing a five-year OCI revenue curve ($18B → $144B) with no earnings anchor. This quarter, the FY27 disclosure pivots from revenue ($90B reaffirmed, unchanged) to EPS ($8.05, raised, +18% growth explicitly stated "after adjusting for the one-time events"). The reaffirmation of revenue alongside an EPS raise is the first time management has signaled that the OCI ramp has margin leverage embedded — a direct answer to the open question from the Q4 FY25 acceleration guide about whether margins would hold or compress through the build.

The RPO breakdown is a tone-shifting disclosure. Last quarter management asserted that "most large-scale AI contracts do not require incremental capital as most of the equipment needed is either funded upfront via customer prepayments...or the customer buys the GPUs and supplies them to Oracle." This quarter, that assertion gets a number: $75B of the $638B RPO is explicitly tagged as prepaid or customer-supplied GPU hardware. The framing moved from rhetorical defense to quantified disclosure — exactly the validation the FY26 -$23.7B FCF print required.

The introduction of Oracle Health AI as a named growth driver expands the vertical-AI story beyond infrastructure for the first time. Management's claim that "this new AI patient care management system" will "push the growth rate of the overall Oracle Health business to double-digits in fiscal year 2027" puts a number on a segment Oracle has historically left undisclosed. Combined with the qualitative "AI is about to completely revolutionize healthcare" line, this looks like the start of a vertical-AI disclosure track that will run parallel to the OCI curve in FY27.

The clean-energy data-center framing ("natural gas fuel cells") is new and appears to pre-empt the sustainability question that scales with the capex ramp — an offensive disclosure choice, not a defensive one.

Answers to last quarter's watch list

IaaS sustaining above 70% — Resolved decisively. Q4 IaaS printed +93% YoY, accelerating from Q3's +84% and far above the 75% floor flagged as the test for whether Q3 was a contract spike. The four-quarter cadence (+55% → +68% → +84% → +93%) is a clean step-up, not a one-off. Status: Resolved positively
RPO QoQ build cadence — Resolved decisively. RPO added $85B QoQ in Q4 ($553B → $638B), nearly triple the Q3 build of $29B and the largest sequential add of FY26. The pipeline-replenishment concern from Q3 reverses entirely. Status: Resolved positively
Free cash flow trajectory — FY26 FCF closed at -$23.7B against operating cash flow of $31.98B, confirming the structural deficit as a full-year figure. The "customer prepayments fund the equipment" claim gets partial validation via the new $75B prepaid/customer-supplied GPU hardware disclosure within RPO — a real number where there was only rhetoric last quarter — but the cash flow statement itself still shows a $23.7B hole. The question is no longer whether prepayments exist; it's whether the $75B converts to OCF on a cadence that closes the gap. Status: Continue monitoring
Multicloud database dollar disclosure — Still no absolute dollar figure. Management gave +404% growth for "Multicloud AI Database" in Q4 (vs +531% in Q3, +817% in Q2, +1,529% in Q1) and called it "our fastest growing business ever," but again declined to disclose the base. The framing also shifted from "Multicloud database" to "Multicloud AI Database" — a relabeling that complicates QoQ comparison. Status: Not resolved
FY28 / FY30 OCI curve refresh — The outer-year OCI curve was not republished or updated. FY27 EPS got a new dollar anchor at $8.05, but the $73B FY28 / $114B FY29 / $144B FY30 figures are now four quarters old without an explicit reaffirmation. Status: Continue monitoring
Q4 USD vs cc growth split — The ~1pt FX tailwind in the Q4 guide effectively closed: Q4 actual was +21% YoY USD vs the +19–21% USD / +18–20% cc guide, with USD and CC essentially converged in the Q1 FY27 guide (+27–29% in both). FX is no longer a material wedge in the current disclosure. Status: Resolved positively

What to watch into next quarter

Q1 FY27 IaaS print: the +58–64% total cloud guide implies IaaS materially above 70% to deliver. Watch whether IaaS prints above $6B in Q1 (vs Q4's $5.79B) — a flat-to-down sequential IaaS would be the first crack in the four-quarter acceleration story.

Operating cash flow vs the $75B prepaid GPU bucket: the binary test of the "prepayments fund equipment" thesis. Watch whether Q1 OCF runs materially above the implied $8B/quarter pace ($31.98B FY26 ÷ 4), suggesting prepayments are flowing through as a working capital tailwind. Below that, the FCF deficit gets worse before it gets better.

EMEA recovery: Q4 decelerated to +2.4% from Q3's +15.9% — watch whether this was a single-quarter contract-timing issue or a more durable slowdown in European AI infrastructure demand.

Oracle Health "double-digits" benchmark: management explicitly committed to Oracle Health reaching double-digit growth in FY27. The Q1 FY27 print is the first reference point — watch for an absolute Oracle Health revenue figure, which the company has historically not broken out.

FY28 OCI curve reaffirmation or refresh: the $73B FY28 step is the load-bearing number from Q1 FY26's reveal. With FY27 EPS now raised, the absence of an FY28 update is increasingly conspicuous. Watch the Q1 FY27 release for an explicit reaffirmation or a refresh of the outer-year curve.

Multicloud AI Database dollar disclosure: the rebranding from "Multicloud database" to "Multicloud AI Database" plus four quarters of triple-digit growth without a base figure has now become the longest-running disclosure gap. A dollar number remains the cleanest way to quantify the multi-billion-dollar customer narrative.

Sources

  1. Oracle Corporation Q4 FY2026 Press Release (Exhibit 99.1), filed June 10, 2026 — https://www.sec.gov/Archives/edgar/data/1341439/000119312526265848/orcl-ex99_1.htm
  2. Oracle Corporation Q3 FY2026 Press Release (Exhibit 99.1), March 10, 2026 — prior-quarter baseline for IaaS, RPO, and guidance trajectory.
  3. Oracle Corporation Q2 FY2026 Press Release (Exhibit 99.1), December 10, 2025 — multi-quarter OCI and RPO arc.
  4. Oracle Corporation Q1 FY2026 Press Release (Exhibit 99.1), September 9, 2025 — baseline for Q1 FY27 YoY guidance math and original multi-year OCI curve.

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