Oracle Corporation reported its fiscal fourth quarter and full-year results for the period ending May 31, 2026. Robust growth in its cloud infrastructure business drove several financial metrics to record highs. The company concurrently raised its full-year profit guidance and anticipates an acceleration in cloud business growth to nearly 60% next quarter.
Total revenue for Q4 rose 21% year-over-year to $19.2 billion, surpassing expectations of $19.09 billion. Revenue from cloud infrastructure soared 93% to $5.8 billion, serving as the primary driver of the overall performance.
More critically, the company's remaining performance obligation (RPO) at quarter-end increased by a net $85 billion from the previous quarter, reaching a record $638 billion, a substantial 363% year-over-year increase. This reflects the enormous market demand for AI cloud computing services.
Regarding forward guidance, Oracle anticipates total revenue growth will accelerate to a range of 27% to 29% in the first quarter. Cloud revenue growth is projected to surge further to between 57% and 64%. The full-year FY2027 revenue target remains unchanged at $90 billion. However, the non-GAAP earnings per share (EPS) guidance was raised to $8.05, representing approximately 18% year-over-year growth.
Oracle stated it expects to raise approximately $40 billion through a combination of debt and equity financing, which includes a previously announced $20 billion stock offering plan. This move has sparked investor concerns, with the stock falling over 7% in after-hours trading.
Record Revenue Across the Board, Cloud Segment Drives Growth
In the fourth quarter, Oracle's total revenue grew 21% year-over-year to $19.2 billion. Combined cloud revenue (IaaS + SaaS) increased 47% to $9.9 billion, crossing the $10 billion threshold for the first time.
Breaking it down by segment, cloud infrastructure (IaaS) revenue surged 93% to $5.8 billion, marking the fastest-growing core engine. Cloud application (SaaS) revenue grew 10% to $4.1 billion. Traditional software license revenue declined 2% to $6.8 billion, reflecting the ongoing trend of customer migration to the cloud. Services revenue was $1.3 billion, up 13%, and hardware revenue was $900 million, a 9% increase.
On profitability, Q4 non-GAAP operating profit rose 22% to a record $8.6 billion. Non-GAAP EPS grew 24% to $2.11, while GAAP EPS increased 21% to $1.45.
For the full fiscal year FY2026, total revenue increased 17% to a record $67.4 billion, with cloud revenue up 39% to $34 billion. Full-year operating cash flow grew 54% to a record $32 billion, demonstrating strong cash generation capabilities. However, due to continued massive investments in cloud infrastructure build-out, full-year free cash flow was negative $23.7 billion.
The earnings report highlighted Oracle's strategic focus on AI in the healthcare sector. The company announced it will launch a new AI-powered version of its Cerner hospital and clinic patient management system and expects this to drive double-digit growth for the entire Oracle Health business in FY2027.
The company also mentioned that its AI molecular design model has the potential to accelerate new drug discovery. Its newly launched AI clinical trial system aims to help regulatory agencies review and approve trial results more rapidly, thereby shortening the wait time for patients to access new treatments.
Major AI Contracts Fuel Record-Breaking Backlog
The RPO figure was one of the most closely watched metrics in this earnings report. At the end of Q4, Oracle's RPO reached $638 billion, a net increase of $85 billion in the quarter alone, representing a massive 363% year-over-year jump.
The company disclosed that the significant RPO growth in Q3 and Q4 primarily stemmed from large-scale AI contracts. These contracts feature a unique structure: either customers prepay for Oracle to procure GPUs, or customers purchase and provide the GPUs to Oracle themselves. To date, the total amount of such prepayments and customer-provided hardware has reached $75 billion.
Oracle stated this arrangement significantly reduces the capital the company itself needs to raise for building AI data centers.
Also noteworthy is the performance of the Oracle Multicloud AI Database business, which grew 404% year-over-year in Q4, becoming the fastest-growing product line in the company's history.
Capital-Intensive Expansion: $48 Billion Raised in FY2026, $40 Billion More Planned for FY2027
To support the massive expansion of its AI cloud infrastructure, Oracle has entered a period of high-intensity fundraising. Throughout FY2026, the company raised $43 billion through debt financing and $5 billion through equity issuance, totaling $48 billion.
Looking ahead to FY2027, the company expects to raise approximately $40 billion more through a mix of debt and equity, which includes the previously announced $20 billion at-the-market (ATM) equity offering program. The company also indicated it does not plan to add new debt financing within the 2026 calendar year.
The persistently negative free cash flow underscores the high intensity of capital expenditure during this expansion phase. The company has incorporated a clean energy solution centered on natural gas fuel cells into its data center construction and highlights its high-performance networking, advanced security architecture, and autonomous software as key competitive differentiators.
Next Quarter Guidance: Revenue Growth of 27% to 29%
For the first quarter, total revenue is projected to grow 27% to 29% year-over-year. Cloud revenue is forecast to increase 57% to 64%. Non-GAAP EPS is expected to be in the range of $1.72 to $1.76, representing growth of 17% to 20%.
For the full FY2027, the company maintains its $90 billion total revenue target and has raised its non-GAAP EPS guidance to $8.05.
The company noted that after excluding one-time investment gains from the sale of the Ampere chip business and Bloom Energy warrants in FY2026, the growth rate for FY2027 non-GAAP EPS is approximately 18%.
Oracle's board of directors declared a quarterly cash dividend of $0.50 per share, payable on July 24, 2026, to shareholders of record as of July 10, 2026.
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