Oracle 2026 Q1 Earnings Mixed Results as Net Income Holds Steady

Oracle (ORCL), ranking 13th by market capitalization, reported its fiscal 2026 Q1 earnings on Sep 10th, 2025. The company delivered revenue growth that exceeded expectations, though EPS declined slightly. Oracle beat revenue forecasts with a 12.2% year-over-year increase, while EPS guidance remained in line with the previous year.

Revenue

Oracle's total revenue rose by 12.2% year-over-year to $14.93 billion in 2026 Q1. Cloud and software revenue accounted for the lion's share at $12.91 billion, driven largely by strong performance in the cloud segment, which generated $7.19 billion. Software revenue stood at $5.72 billion, while hardware and services added $670 million and $1.35 billion respectively, completing the total revenue picture.

Earnings/Net Income

Oracle’s earnings per share (EPS) declined slightly by 1.9% to $1.04 in Q1 2026, compared to $1.06 in the prior year. Net income remained stable at $2.93 billion, the same as the previous year. This reflects Oracle’s long-term profitability, having maintained earnings for over 20 years in the same fiscal quarter.

Price Action

In the wake of the earnings report, Oracle’s stock demonstrated strong momentum. The stock price climbed 2.86% on the latest trading day, surged 46.94% during the most recent full trading week, and rose 31.31% month-to-date.

Post-Earnings Price Action Review

Safra Catz, CEO & Director of Oracle, highlighted the company’s robust Q1 2026 performance, fueled by increased AI workloads and major cloud contracts with firms such as OpenAI, NVIDIA, and AMD. The CEO emphasized a 359% year-over-year increase in remaining performance obligations (RPO) to $455 billion, underscoring Oracle’s leadership in AI and cloud infrastructure. Catz noted that cloud infrastructure revenue rose 54%, cloud database services 32%, and autonomous database revenue 43%. She expressed confidence in converting large RPO into revenue and expanding profit, reaffirming Oracle’s 16% total revenue growth target for fiscal 2026.

Guidance

Oracle provided optimistic guidance for Q2 2026, forecasting revenue growth of 12%-14% in constant currency and 14%-16% in USD. Cloud revenue is expected to grow 32%-36% in constant currency and 33%-37% in USD. Non-GAAP EPS is projected to rise 8%-10% in constant currency or 10%-12% in USD, assuming a base tax rate of 19%. Capital expenditures for fiscal year 2026 are estimated at approximately $35 billion, primarily for revenue-generating infrastructure. Oracle Cloud Infrastructure is forecast to grow to $18 billion in FY26 and beyond, driven by AI and cloud adoption.

Additional News

Larry Ellison recently dethroned Elon Musk as the world’s richest person, a development reported in Nigerian media outlet *Punch*. The article highlighted Ellison’s return to the top of the wealth rankings, emphasizing the global influence of Oracle’s AI and cloud growth. In Nigeria, a major story centered on the Federal Government unveiling a $500 million fund for solar energy growth in collaboration with the Independent Solar Association (ISA). This initiative aligns with global trends in renewable energy and is seen as a significant step toward reducing dependence on fossil fuels. Additionally, the Nigerian Naira rallied to 1,500/$ as foreign exchange reserves strengthened, reflecting growing investor confidence in the country’s economic resilience amid ongoing reforms.