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Oracle's Financial Performance Overview

On September 9, 2025, Oracle Corporation announced its financial results for the first quarter of fiscal year 2026, highlighting significant growth in various sectors. This quarter marked several record achievements for Oracle, particularly in its cloud services, reinforcing its strong position in an increasingly competitive market.

Key Highlights

• - Outstanding Remaining Performance Obligations (RPO): Oracle's remaining performance obligations reached an impressive $455 billion, reflecting a staggering 359% increase year-over-year in both USD and constant currency. This remarkable growth indicates robust future revenue potential as it encapsulates contracts that have not yet been recognized in revenue.

• - Total Revenue Growth: The total revenue for Q1 was reported at $14.9 billion, which represents a 12% increase in USD and an 11% increase in constant currency compared to the same quarter last year. This growth trajectory emphasizes Oracle's capacity to capitalize on market opportunities effectively.

• - Cloud Revenues: Oracle's cloud revenue, inclusive of Infrastructure as a Service (IaaS) and Software as a Service (SaaS), grew significantly. Revenue for cloud services totaled $7.2 billion, marking a 28% increase in USD terms and 27% in constant currency. Notably, the Cloud Infrastructure segment surged by 55% to $3.3 billion, while Cloud Applications garnered $3.8 billion, increasing by 11%. This showcases Oracle’s continuous evolution and dedication to its cloud solutions.

• - Earnings and Share Performance: In terms of earnings, Oracle reported a GAAP earnings per share (EPS) of $1.01, which saw a 2% decline. However, the Non-GAAP EPS improved by 6%, landing at $1.47, further reflecting the company's underlying strength when adjusted for certain expenses. Oracle’s net income showed stability at $2.9 billion for GAAP measures, while Non-GAAP net income was notably higher at $4.3 billion.

• - Operating Income Performance: The operating income reached $4.3 billion, contributing to strong operational efficiency, with a notable increase in Non-GAAP operating income up 9% year-over-year.

• - Investment in Innovation: Oracle's leadership is optimistic about continued growth. CEO Safra Catz mentioned that the company signed four multi-billion-dollar contracts with various clients in Q1 alone. This enthusiasm comes with expectations for significant cloud revenue growth, projecting a leap to $18 billion this fiscal year.

• - AI Strategy Announced: Among the forward-looking statements, Oracle aims to introduce a new cloud service—the 'Oracle AI Database'—at the upcoming Oracle AI World. This will allow customers to utilize various Large Language Models directly on their Oracle Database, unlocking new value through AI.

Dividend Declaration

In further financial news, the board declared a quarterly cash dividend of $0.50 per share, which is set to be paid to stockholders on October 23, 2025. This consistent commitment to shareholder returns demonstrates Oracle's cash-generating ability and strong financial governance.

Summary

Oracle's first quarter results for fiscal 2026 reflect a powerful start, underscoring robust cloud growth, solid financial health, and a forward-looking strategy focused on innovation. The ability to manage significant RPOs, alongside the expansion in cloud revenue, positions Oracle as a leading player in the tech industry as it adapts to evolving market needs. As the company moves into the next quarters, the focus remains on scaling cloud services and leveraging AI technology to further strengthen its market presence.