Oracle 2026 Q2 Earnings Strong Performance as Net Income Surges 94.7%

Oracle reported fiscal 2026 Q2 earnings on Dec 10th, 2025, with revenue rising 14.2% to $16.06 billion and EPS surging 89.4% to $2.14. The company guided to 37%-41% cloud revenue growth and 16%-18% total revenue growth, signaling confidence in its AI-driven infrastructure expansion.

Revenue

Cloud and software led the way with $13.85 billion in revenue, driven by robust performance in both cloud and software segments. Oracle’s cloud infrastructure revenue grew 68% to $4.08 billion, while software revenue declined 3% to $5.88 billion due to weaker license sales. Hardware and services segments contributed $776 million and $1.43 billion, respectively, reflecting stable demand across diversified offerings.

Earnings/Net Income

Oracle’s EPS rose 89.4% to $2.14, and net income surged 94.7% to $6.13 billion, underscoring strong operational resilience. The company’s profitability highlights its ability to maintain margins despite market volatility.

Post-Earnings Price Action Review

The strategy of buying Oracle shares after its revenue beat date and selling 30 days later delivered moderate returns but underperformed the market. The strategy’s CAGR was 7.19%, trailing the benchmark by 31.34%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.27, the strategy had minimal risk but offered conservative returns, making it suitable for investors seeking stability.

CEO Commentary

Mike Sicilia emphasized Oracle’s accelerating cloud applications growth, driven by AI integration and cross-selling synergies. Clay Magouyrk highlighted infrastructure’s 66% year-over-year growth and flexible capacity models to reduce capital intensity. Both leaders expressed optimism about Oracle’s differentiated cloud infrastructure and strategic alignment between applications and infrastructure.

Guidance

Oracle guided to Q3 cloud revenue growth of 37%-41% (constant currency) and total revenue growth of 16%-18%. Non-GAAP EPS is projected at $1.64-$1.68 (constant currency) and $1.70-$1.74 (USD). FY26 CapEx is expected to increase by ~$15B due to accelerated RPO monetization.

Additional News

Oracle sold its stake in Ampere for a $2.7B profit, signaling a shift to chip neutrality. New CEOs Mike Sicilia and Clay Magouyrk took the helm, emphasizing AI-driven growth. The company announced a $0.50/share quarterly dividend, reflecting financial strength and commitment to shareholder returns.