Cloud infrastructure revenue surged 121% year-over-year to $7.39 billion (from $3.35 billion), driving total cloud revenue to $11.61 billion (+62% YoY) and elevating cloud to 60% of total revenue (vs. 48% a year prior). Remaining performance obligations jumped to $664 billion from $455 billion a year earlier, driven by certain significant cloud contracts entered during the period. Oracle received $11.4 billion in customer prepayments with a significant financing component in the quarter (none in the prior-year quarter), and total deferred revenues nearly doubled to $30.8 billion from $15.4 billion.
Capital expenditures accelerated sharply to $28.5 billion in the quarter, up 235% from $8.5 billion in the prior-year quarter, primarily to expand data center capacity and establish new geographic locations. Construction in progress rose to $48.5 billion from $40.0 billion at fiscal year-end, and net property, plant and equipment increased to $127.8 billion from $100.0 billion. Management expects full-fiscal-year 2027 capex to exceed fiscal 2026 levels.
Oracle disclosed $288 billion of additional data-center lease commitments, substantially all expected to commence between Q2 fiscal 2027 and fiscal 2029 on 15-to-19-year terms, plus $34.2 billion in unconditional purchase obligations (primarily cloud infrastructure components and data-center power supply) with terms of one year or greater. These commitments were not yet reflected on the balance sheet.
The 2026 Restructuring Plan, which includes adoption and integration of artificial intelligence technologies across certain functions, carried total estimated costs of up to $2.1 billion as of August 31, 2026, and was subsequently supplemented by approximately $700 million. Oracle recorded $167 million in restructuring expense in the quarter (down from $415 million in the prior-year quarter). Management noted that certain cost savings from the plan were offset by investments in resources and geographies to support development and delivery of its second-generation cloud infrastructure.
Substantially all of Oracle's $2.4 billion in non-marketable equity and debt investments is held in TikTok USDS Joint Venture LLC, an equity-method investee in which Oracle holds a 15% ownership interest. Oracle also fully utilized its $20 billion at-the-market equity program during the quarter, issuing approximately 141 million shares for $19.9 billion in net proceeds to fund capital expenditures and general corporate purposes.
(Filed on June 22, 2026)
+20.6%
—
$31.3B
Q4-specific (Mar–May 2026): Oracle replaced its $6 billion revolving credit facility with a new $10 billion five-year facility on March 6, 2026, and increased its commercial paper program to $10 billion in March 2026. No common-stock repurchase activity occurred during the three months ended May 31, 2026. The filing notes that Q4 is typically Oracle's highest-revenue and highest-margin quarter seasonally, but does not provide a standalone Q4 income-statement or cash-flow breakout.
Annual context (fiscal 2026, ended May 31, 2026): Total revenue was $67.4 billion (up 17% YoY). Cloud infrastructure revenue of $18.1 billion (up 77%) drove 84% of constant-currency cloud revenue growth, while cloud applications revenue was $15.9 billion (up 11%); cloud revenues represented 51% of total revenue versus 43% in fiscal 2025. Software license revenue declined 9% to $4.7 billion, and software support was essentially flat at $19.8 billion.
Annual context: Capital expenditures reached $55.7 billion (up 162% from $21.2 billion), driven by data-center expansion; net property, plant and equipment rose to $100 billion (from $43.5 billion) with construction in progress of $40 billion (from $16.5 billion) across roughly 181 data-center locations. Remaining performance obligations surged to $638 billion (from $138 billion), attributed primarily to significant cloud contracts signed during the year, of which about 12% is expected to be recognized within 12 months. Oracle also received $4.6 billion in customer prepayments carrying a significant financing component (none in prior years) and held $260 billion in additional data-center lease commitments (15–19-year terms) not yet on the balance sheet; subsequently, it entered $19 billion of further cloud-infrastructure purchase commitments commencing in fiscal 2027.
Annual context: The 2026 Restructuring Plan, which includes workforce adjustments tied to AI-technology adoption and a continued focus on cloud-based offerings and second-generation cloud infrastructure, generated $1.8 billion in charges during fiscal 2026 (total estimated up to $2.1 billion). Oracle recorded a $2.7 billion realized gain on the November 2025 sale of its Ampere Computing stake to SoftBank Group (cash proceeds $4.3 billion) and, during the year, issued $43 billion of senior notes and $5 billion of 6.50% Series D Mandatory Convertible Preferred Stock (February 2026) to fund capital expenditures and general corporate purposes; a $20 billion at-the-market equity program established in February 2026 had no shares sold as of May 31, 2026.
Annual context / governance: Oracle operated under a dual-CEO structure (Clayton Magouyrk and Michael Sicilia, both appointed September 2025) and appointed Hilary Maxson as Chief Financial Officer in April 2026. The company employed approximately 141,000 people and invested $10.3 billion in research and development. Management stated that cloud-and-software infrastructure expense growth is expected to continue in fiscal 2027 and beyond as data-center capacity expands to meet current and expected customer demand for cloud and AI offerings.
(Filed on March 11, 2026)
+21.7%
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$38.5B
Q3 FY26 cloud infrastructure revenue grew 84% (81% constant currency) to $4,888M, contributing 85% of constant-currency cloud revenue growth; total cloud revenue reached $8,914M and represented 52% of total company revenue. Remaining performance obligations surged to $552.6B (from $130.2B a year earlier), driven by 'certain significant cloud contracts' entered into during the nine-month period; approximately 12% is expected to be recognized as revenue within 12 months, 31% over months 13-36, and 35% over months 37-60.
Capital expenditures for the nine months ended February 28, 2026 were $39.2B (vs. $12.1B in the prior-year period), and trailing four-quarter capex reached $48.3B (vs. $14.9B), driving net capital position to negative $24.7B in free cash flow (trailing four quarters). Net property, plant and equipment nearly doubled to $83.6B from $43.5B at fiscal year-end 2025. Oracle disclosed $261B of additional data center lease commitments, substantially all expected to commence between Q4 FY26 and fiscal 2028 on terms of 15-19 years, plus $11B of unconditional purchase obligations primarily related to data center power. Management stated the capex upward trend is expected to continue through the remainder of FY26 and 'in the next few fiscal years.'
Cloud and software segment expenses grew 70% (67% constant currency) in Q3 to $4,574M, driven primarily by a $1.8B increase in infrastructure expenses; segment margin declined to 58% (constant currency) from 63% a year earlier. Management indicated expense growth is expected to continue during FY26 and beyond as it expands existing data center capacity and establishes data centers in new geographic locations.
The 2026 Restructuring Plan, tied to acquisitions and a continued shift toward cloud-based offerings including 'second-generation cloud infrastructure,' carries total estimated costs of up to $2.1B. Oracle recorded $156M of restructuring expense in Q3 and $982M for the nine months, primarily employee severance across cloud/software, hardware, and services segments. As of February 28, 2026, $392M in accrued costs remained, with the plan expected to conclude through fiscal 2026.
On November 25, 2025, SoftBank Group acquired all equity interests in Ampere Computing, in which Oracle held equity, debt, and call option interests. Oracle received $4.3B in cash and recorded a $2.7B realized gain in the nine-month period; no remaining Ampere investment existed as of February 28, 2026. The substantial majority of Oracle's remaining $2.2B non-marketable investments as of quarter-end were in TikTok USDS Joint Venture LLC, an equity-method investee in which Oracle holds a 15% ownership interest.
Total Q3 revenue was $17,190M (up 22% reported, 18% constant currency), with cloud and software contributing $15,033M (88% of revenue). Nine-month revenue was $48,173M (up 16% reported, 14% constant currency). Q3 GAAP operating margin was 32% (vs. 31% prior year); diluted EPS was $1.27 (vs. $1.02).
(Filed on December 11, 2025)
+14.2%
—
$19.2B
Cloud infrastructure revenue surged 68% (constant currency 66%) to $4.08B in Q2 FY26 (vs. $2.43B a year ago), driving total cloud revenue to $8.0B and lifting cloud's share of total revenue to 50% (from 42% in Q2 FY25). Remaining performance obligations jumped to $523.3B from $97.3B a year earlier, driven primarily by certain significant cloud contracts entered into during the period; Oracle expects to recognize roughly 10% over the next 12 months, 30% over months 13-36, and 35% over months 37-60.
Management approved and initiated the 2026 Restructuring Plan in H1 FY26, with total estimated costs of up to $1.6B. The company recorded $411M of restructuring expense in Q2 and $826M for the six-month period. Oracle states the majority of initiatives implement its continued emphasis on cloud-based offerings, with certain cost savings offset by investments in resources and geographies to develop and deliver its second-generation cloud infrastructure.
Cash capital expenditures more than tripled to $20.5B in H1 FY26 (vs. $6.3B in H1 FY25), primarily for data center expansion, and Oracle expects this upward trend to continue through the remainder of FY26 and subsequent years. Net PP&E rose from $43.5B to $67.9B over the six months. As of November 30, 2025, Oracle had $248B in additional data-center and cloud-capacity lease commitments (terms of 15-19 years, commencing Q3 FY26 through FY28) and approximately $10B in unconditional purchase obligations, also primarily for cloud capacity, none of which are yet on the balance sheet.
SoftBank's acquisition of Ampere Computing Holdings was consummated on November 25, 2025. Oracle received $4.3B in cash in exchange for its equity, debt, and call-option interests in Ampere and recorded a $2.7B realized gain in non-operating income for Q2. Oracle holds no remaining investment in Ampere as of the quarter-end.
Total Q2 revenue grew 14% (constant currency 13%) to $16.1B, with cloud and software representing 86% of revenue. Trailing four-quarter free cash flow turned negative at -$13.2B (vs. +$9.5B in the prior-year period) as capex of $35.5B over the trailing twelve months far exceeded operating cash flow of $22.3B, reflecting the scale of the data-center buildout.
