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- **Cloud Dominance**: 33% cloud revenue growth ($8B) led by 66% infrastructure growth, 177% GPU revenue surge, and 817% multicloud database consumption.
- **Financial Strength**: Non-GAAP EPS up 51% to $2.26, $523B RPO backlog, and $4B FY26 incremental revenue from Q2 bookings.
- **AI & Apps Synergy**: 11% cloud apps growth, 14% deferred revenue growth, and 21% industry cloud expansion, powered by AI-integrated Fusion apps and clinical AI agents.
- **Infrastructure Flexibility**: OCI's 147 live regions, 64 planned, and ability to convert capacity in hours, supported by customer-branded chips and vendor rentals.
- **Strategic Differentiation**: Oracle's unique AI + database + applications stack enables private data reasoning, driving 274 live clinical AI customers and 330 Q2 go-lives.

**【Management Opening Remarks】**
- Ken Bond welcomed participants and outlined the call structure, emphasizing forward-looking statements and risk factors. He highlighted the importance of Oracle's cloud and AI strategies.

**【CFO Financial Commentary】**
- **Revenue Growth**: Total revenue of $16.1B (+13% YoY), with cloud revenue at $8B (+33% YoY). Cloud infrastructure grew 66% YoY, driven by GPU-related revenue up 177%.
- **Financial Performance**: Non-GAAP EPS of $2.26 (+51% YoY), GAAP EPS of $2.10 (+86% YoY). Operating cash flow was $2.1B, with free cash flow negative due to $12B in CapEx.
- **Backlog**: RPO reached $523.3B (+433% YoY), with 12-month RPO up 40% YoY. Guidance includes $4B additional FY26 revenue from Q2 bookings.
- **Currency Impact**: 1% positive revenue impact in Q2, 2-3% expected in Q3.

**【CEO Commentary】**
- **Clay Magouyrk (Infrastructure)**: OCI grew 66% YoY, with 147 live regions and 64 planned. Delivered 400MW capacity, 50% more GPU capacity than Q1. SuperCluster in Texas on track with 96,000 NVIDIA GPUs. Multicloud database consumption up 817% YoY.
- **Mike Sicilia (Applications)**: Cloud apps revenue up 11% YoY ($3.9B), with Fusion ERP (+17%), SCM (+18%), HCM (+14%). Industry cloud up 21% YoY. Deferred revenue up 14% YoY. AI integration in apps (e.g., clinical AI agents with 274 live customers).

**【Q&A Highlights】**
- **Funding AI Growth**: Clay Magouyrk emphasized flexible models (customer-branded chips, vendor rentals) to minimize capital needs, targeting <$100M in new debt.
- **Margins**: OCI AI workloads target 30-40% gross margins, achievable within months of data center deployment.
- **Platform Expansion**: Larry Ellison highlighted Oracle's unique position combining AI, databases, and applications, enabling multi-step reasoning on private data.
- **Data Center Flexibility**: Brent Thill asked about converting capacity between customers; Clay Magouyrk noted OCI's fungible infrastructure allows real-time allocation within hours.
- **Application Momentum**: Mike Sicilia cited 11% apps growth on a $16B run rate, driven by 1 Oracle go-to-market strategy, AI integration, and deferred revenue acceleration.


Oracle Corporation (ORCL) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ORCL

ORCL fundamentals

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