Oracle 2026 Q1 Earnings Sustained Profitability Amid Revenue Growth

Oracle (ORCL), the 16th-largest company by market capitalization, reported its fiscal 2026 Q1 earnings on September 9, 2025. The company delivered a solid top-line performance, with total revenue rising 12.2% year-over-year to $14.93 billion. This growth was driven by strong demand for its cloud services and continued software innovation. Oracle’s results met expectations, and the company raised growth guidance for cloud infrastructure, projecting $18 billion in fiscal 2026 and an accelerated path toward $144 billion in fiscal 2030.

Revenue

Oracle’s revenue growth was fueled by a robust performance across its core business segments. Cloud and software revenue totaled $12.91 billion, with the cloud segment alone contributing $7.19 billion, marking a significant 54% year-over-year increase. Software sales stood at $5.72 billion, while services revenue added $1.35 billion. Hardware, the smallest portion of the revenue mix, generated $670 million. The company’s focus on cloud and AI-driven services continues to deliver value, reinforcing Oracle’s leadership in enterprise computing.

Earnings/Net Income

Despite the strong revenue growth, Oracle’s earnings per share (EPS) declined slightly by 1.9% to $1.04 in the latest quarter compared to $1.06 in the prior year. Net income also remained flat at $2.93 billion, down 0.1% year-over-year. While the EPS contraction reflects the capital-intensive nature of the cloud infrastructure expansion, the company has maintained consistent profitability for more than 20 years, showcasing its long-term operational resilience.

Price Action

Oracle’s stock showed mixed short-term performance, with a 0.65% gain on the latest trading day and a 7.19% increase over the prior full trading week. However, the stock declined 3.16% month-to-date, reflecting broader market volatility and investor caution ahead of the earnings release.

Post-Earnings Price Action Review

Safra Catz, Oracle’s CEO, underscored the company’s momentum in the AI and cloud infrastructure markets, highlighting new contracts with AI leaders like OpenAI and NVIDIA. Remaining Performance Obligations (RPO) surged to $455 billion, a 359% year-over-year jump, signaling strong future revenue potential. Catz emphasized Oracle’s unique position in AI training and inferencing, driven by its enterprise data custodianship and advanced AI database capabilities. She expressed confidence in the trajectory of cloud infrastructure, projecting continued growth and profitability as the company scales its capacity. Oracle’s strategic capital expenditures, aimed at revenue-generating infrastructure, are expected to drive long-term value.

CEO Commentary

Safra Catz, CEO & Director, underscored Oracle’s strong Q1 performance, driven by becoming the go-to cloud for AI workloads and securing major contracts with AI leaders like OpenAI and NVIDIA. Remaining Performance Obligations (RPO) surged to $455 billion, up 359% YoY. Cloud infrastructure revenue grew 54%, with Autonomous and Cloud Database Services showing double-digit gains. She emphasized Oracle’s unique position in AI training and inferencing, leveraging its custodianship of enterprise data and advanced AI database capabilities. Catz expressed optimism about cloud infrastructure’s future growth, forecasting $18 billion in FY26 and accelerating to $144 billion by FY30. She reiterated confidence in total revenue growth of 16% for FY26 and accelerating profitability, supported by strategic CapEx and efficient internal AI adoption.

Guidance

For Q2 FY26, Safra Catz guided to total revenue growth of 12-14% in constant currency and 14-16% in USD. Cloud revenue is expected to rise 32-36% in constant currency and 33-37% in USD. Non-GAAP EPS is projected at $1.58-$1.62 in constant currency and $1.61-$1.65 in USD, with a 19% tax rate assumption. CapEx for FY26 is expected to be approximately $35 billion, focused on revenue-generating infrastructure. Oracle aims to convert its $455 billion RPO into higher revenue and profit growth as capacity expands.

Additional News

In Nigeria, the Punch newspaper reported on a range of political and social developments in early September 2025. Political analysts noted growing concerns over “premature campaigns” ahead of the 2027 elections, while civil society groups decried rising insecurity in the South-East region. In the business sector, the Nigerian Stock Exchange (NGX) saw a N254 billion uptick in value, reflecting investor confidence. Meanwhile, reports highlighted increasing reliance on AI by Nigerian students, according to Google, as well as ongoing legal action against vehicle thefts and drug trafficking. Political tensions also flared, with the APC criticizing certain defections as “political scavenging,” while the PDP was described as “dead and buried” by opposition figures.