Oracle Corporation announced its fiscal 2026 Q2 results, leading to shares dropping 11% in early trading after the company reported increased spending on AI data centers and other equipment.
The company’s fiscal second-quarter cloud revenues increased 33% to $8 billion, while revenue in the company’s infrastructure business gained 68% to $4.08 billion.
Total Remaining Performance Obligations increased by 438% year-over-year in USD to $523 billion.
Total quarterly revenues rose by 14% in USD and 13% in constant currency to $16.1 billion.
Software revenues declined by 3% in USD and 5% in constant currency to $5.9 billion.
Oracle now forecasts that capital expenditures will total approximately $50 billion in the fiscal year ending in May 2026, representing a $15 billion increase from its previous September estimate.
Annual revenue is expected to reach $67 billion, affirming the company’s outlook provided in October.
Oracle Principal Financial Officer, Doug Kehring, told investors, “Remaining Performance Obligations (RPO) increased by $68 billion in Q2—up 15% sequentially to $523 billion—highlighted by new commitments from Meta, NVIDIA, and others. Q2 GAAP earnings per share was up 91% to $2.10, and non-GAAP earnings per share was up 54% to $2.26. Our GAAP and non-GAAP earnings per share were both positively impacted by a $2.7 billion pre-tax gain in the sale of Oracle’s interest in our Ampere chip company.”
Oracle Chairman and CTO, Larry Ellison, stated, “Oracle sold Ampere because we no longer think it is strategic for us to continue designing, manufacturing and using our own chips in our cloud datacenters.”
Moving forward, “We are now committed to a policy of chip neutrality where we work closely with all our CPU and GPU suppliers. Of course, we will continue to buy the latest GPUs from NVIDIA, but we need to be prepared and able to deploy whatever chips our customers want to buy. There are going to be a lot of changes in AI technology over the next few years and we must remain agile in response to those changes.”
Oracle CEO, Mike Sicilia said, “Oracle is in a unique position to embed AI in all three layers of our software products: our Cloud Datacenter software, our Autonomous Database and Analytic software, and our Applications software. All three of these Oracle software businesses are already big—AI will make them all better and bigger… We have huge advantages over our applications competitors.”
By CEO NA Editorial Staff
