First Quarter Fiscal 2026 Financial Results
Oracle reported its financial results for the first quarter of fiscal year 2026, revealing that while the company matched earnings expectations, it came up slightly short on revenue estimates.
- Total revenue: $14.9 billion, reflecting a 12% increase year-over-year but missing analyst consensus by 0.59%.
- Cloud revenue: $7.2 billion, up 28%, highlighting continued robust growth in Oracle's cloud services segment.
- Software revenue: $5.7 billion, registering a decrease of 1% compared to the previous year.
- GAAP net income: $2.9 billion.
- Non-GAAP earnings per share: $1.47, aligning with analyst projections and up from $1.39 a year ago.
- Total remaining performance obligations: Surged 359% year-over-year to $455 billion, signaling substantial future contracted business.
Earnings Performance and Share Price Movement
Oracle’s earnings per share met Wall Street expectations, coming in at $1.47 per share (non-GAAP) for the quarter. However, the top-line missed consensus, which some analysts believe may be attributed to slower growth in legacy software areas offsetting robust expansion in cloud services[1][3].
Despite the mixed results, Oracle shares have posted significant gains in 2025, appreciating about 43.1% year-to-date, substantially outpacing the S&P 500's 10.4% rise over the same period[3].
Operational Trends and Outlook
- Oracle’s cloud division continues to stand out as a key driver of growth, with cloud revenue seeing a double-digit percentage increase.
- Software revenue softness suggests ongoing shifts from traditional on-premises software to cloud-based offerings.
- Short-term deferred revenues totaled $12.1 billion, and operating cash flow for the past year reached $21.5 billion, up 13%.
AI and Technology Investments
Oracle’s financial report underscored ongoing investments in artificial intelligence and cloud infrastructure, aiming to capitalize on growing enterprise demand for advanced technologies such as
ChatGPT and similar generative AI solutions.
Looking Forward
Oracle’s management has emphasized the company’s pipeline of future contracted business, as reflected by the 359% surge in remaining performance obligations. The ability to convert this demand into realized revenue will be closely watched by investors in upcoming quarters[1][2][3].
