Oracle has reported a net income of $4.2bn, or $1.45 per diluted share, for the fourth quarter (Q4) ended 31 May 2026, a 23% increase compared to $3.4bn, or $1.19 per diluted share, for the same period of 2025.
The company said total revenue for the quarter rose 21% to $19.2bn. Cloud revenue, which Oracle defines as infrastructure and applications (IaaS + SaaS), increased 47% to $9.9bn. Within that figure, Cloud Infrastructure (IaaS) revenue grew 93%, and Cloud Applications (SaaS) revenue increased 10%, according to the company.
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Outside cloud, software revenue fell 2% to $6.8bn, which Oracle said reflected customers continuing to migrate from on-premise software to the cloud. Services revenue increased 13% to $1.5bn, and hardware revenue rose 9% to $0.9bn.
Oracle reported GAAP operating income of $6.1bn for the quarter, up 20%. Non-GAAP operating income rose 22% to $8.6bn.
For fiscal year 2026, Oracle said total revenue increased 17% to $67.4bn, with cloud revenue up 39% to $34.0bn. Software revenue slipped 1% to $24.5bn, while services revenue rose 10% to $5.7bn and hardware revenue increased 5% to $3.1bn.
Full-year GAAP operating income was $20.6bn, up 17%, and non-GAAP operating income rose 16% to $28.9bn.GAAP net income available to common shareholders increased 36% to $17bn, while non-GAAP net income available to common shareholders rose 29% to $22.2bn. GAAP earnings per share grew 34% to $5.83, and non-GAAP earnings per share increased 27% to $7.631.
Oracle said operating cash flow for fiscal 2026 was $32.0bn, up 54%. Free cash flow was negative $23.7bn, which the company attributed to continued investment to support growth in its Cloud Infrastructure business.
The company reported remaining performance obligations (RPO) of $638bn at the end of the quarter, up 363% in US dollars year-on-year and up $85bn from the end of the third quarter.
Oracle said most of the RPO increase in the third and fourth quarters came from large-scale AI contracts in which customers either prepaid Oracle for GPUs or bought and supplied GPUs to the company.
It said the prepaid and customer-supplied hardware portions of large AI contracts totalled $75bn, which it said reduced the amount of capital it must raise to build out AI data centres.
Oracle also detailed financing tied to its capital investment programme. It said it raised $43bn in debt financing and $5bn in equity financing in fiscal 2026.
For fiscal 2027, it said it expects to raise about $40bn through a combination of debt and equity, including its previously announced $20bn at-the-market equity issuance. Oracle added that it does not expect to issue additional debt in calendar year 2026.
For the first quarter of fiscal 2027, Oracle forecast total revenue growth of 27% to 29% in both constant currency and US dollars. It projected total cloud revenue growth of 57% to 63% in constant currency and 58% to 64% in US dollars. Non-GAAP earnings per share are expected to be between $1.71 and $1.75 in constant currency and between $1.72 and $1.76 in US dollars, representing growth of 16% to 19% and 17% to 20%, respectively.
For full-year fiscal 2027, Oracle confirmed prior guidance of $90bn in total revenue and raised its non-GAAP earnings per share guidance to $8.05. The company stated that this represented a 18% growth rate “after adjusting for the one-time events of selling our Ampere chip business and Bloom Energy warrants in fiscal year 2026.”
