WS Investor
11 Dec 2025, 09:08
Oracle (ORCL) posts strong Q2 with surging cloud demand and sharp earnings growth
Oracle (ORCL) reported robust fiscal 2026 second-quarter results, highlighted by a massive increase in Remaining Performance Obligations (RPO) and continued acceleration in cloud revenue. RPO jumped 438 percent year-over-year to 523 billion dollars, supported by major new commitments from customers including Meta and NVIDIA.
Quarterly revenue rose 14 percent to 16.1 billion dollars, driven by cloud revenue of 8.0 billion dollars, up 34 percent from the prior year. Infrastructure-as-a-Service revenue surged 68 percent, while Software-as-a-Service grew 11 percent. Oracle’s Fusion Cloud ERP and NetSuite ERP businesses expanded 18 percent and 13 percent, respectively.
GAAP earnings per share climbed 91 percent to 2.10 dollars, boosted in part by a 2.7 billion dollar pre-tax gain from the sale of Oracle’s stake in chipmaker Ampere. Non-GAAP earnings per share increased 54 percent to 2.26 dollars.
Oracle executives emphasized a strategic pivot toward chip neutrality and continued investment in AI-enabled cloud infrastructure. The company now operates or is building 211 cloud regions globally and is more than halfway through constructing 72 multicloud data centers embedded in AWS, Google Cloud and Microsoft Azure.
AI-related demand remains a key driver, with Oracle noting that its multicloud database business grew 817 percent in the quarter and that all top five AI models run on Oracle Cloud.
The board declared a quarterly dividend of 0.50 dollars per share, payable January 23, 2026, to shareholders of record on January 9.
Oracle (ORCL) reported robust fiscal 2026 second-quarter results, highlighted by a massive increase in Remaining Performance Obligations (RPO) and continued acceleration in cloud revenue. RPO jumped 438 percent year-over-year to 523 billion dollars, supported by major new commitments from customers including Meta and NVIDIA.
Quarterly revenue rose 14 percent to 16.1 billion dollars, driven by cloud revenue of 8.0 billion dollars, up 34 percent from the prior year. Infrastructure-as-a-Service revenue surged 68 percent, while Software-as-a-Service grew 11 percent. Oracle’s Fusion Cloud ERP and NetSuite ERP businesses expanded 18 percent and 13 percent, respectively.
GAAP earnings per share climbed 91 percent to 2.10 dollars, boosted in part by a 2.7 billion dollar pre-tax gain from the sale of Oracle’s stake in chipmaker Ampere. Non-GAAP earnings per share increased 54 percent to 2.26 dollars.
Oracle executives emphasized a strategic pivot toward chip neutrality and continued investment in AI-enabled cloud infrastructure. The company now operates or is building 211 cloud regions globally and is more than halfway through constructing 72 multicloud data centers embedded in AWS, Google Cloud and Microsoft Azure.
AI-related demand remains a key driver, with Oracle noting that its multicloud database business grew 817 percent in the quarter and that all top five AI models run on Oracle Cloud.
The board declared a quarterly dividend of 0.50 dollars per share, payable January 23, 2026, to shareholders of record on January 9.