Oracle Cloud Infrastructure Growth Reaches 121%
Remaining performance obligations rose $209 billion year-over-year to $664 billion after more than $30 billion of new AI cloud contracts.
Oracle Corporation (ORCL) Cloud Infrastructure (IaaS) revenue rose 121% in USD and 120% in constant currency to $7.4 billion, the fastest year-over-year pace in the three-quarter sequence provided, after 93% growth in the prior quarter and 84% two quarters earlier.
Total quarterly revenues increased 30% to a record $19.3 billion, also accelerating from 21% in USD in the immediately preceding quarter and 22% two quarters earlier. Cloud revenues (IaaS plus SaaS) increased 62% in USD and 61% in constant currency to $11.6 billion, after 47% and 44% year-over-year increases in those two earlier quarters. The results reflected strong execution in infrastructure, with delivery of 850 megawatts of additional datacenter capacity.
Cloud Applications (SaaS) revenue was $4.2 billion, up 10% in USD and constant currency. Software revenues were $5.5 billion, down 3%, attributed to customers’ continuing migration from on-premises software to the cloud. Services revenues were $1.4 billion, up 5%, and hardware revenues were $0.8 billion, up 15%.
GAAP operating income was $6.7 billion, up 57%, and non-GAAP operating income was $8.2 billion, up 31%. GAAP net income available to common shareholders reached $4.7 billion, up 60%, and non-GAAP net income available to common shareholders grew to $5.8 billion, up 34%. GAAP earnings per share increased to $1.56, up 55%, and non-GAAP earnings per share climbed to $1.92, up 30%. GAAP operating margin expanded 612 basis points year-over-year to 35%; non-GAAP operating margin expanded 35 basis points to 42%.
Remaining Performance Obligations, or RPO, rose $209 billion year-over-year to $664 billion. Customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply, and more than $30 billion of additional AI cloud contracts were booked in the quarter. Based on the structuring of those new contracts, there is no incremental impact on plans to raise capital. Since the end of the prior quarter, Oracle delivered more than 300,000 GPUs to AI Cloud customers, almost triple the capacity delivered in the prior quarter.
Operating cash flow reached a record $23 billion, up 184% year-over-year. Free cash flow was negative $5 billion as the company continued to execute on investments to support Cloud Infrastructure growth. Capital expenditures were $28.5 billion. During the quarter, Oracle completed the sale of $20 billion of common stock, before commissions, through an At-the-Market equity program as part of its previously disclosed capital investment program. Cash and cash equivalents were $36.4 billion at August 31, 2026.
For the second quarter of fiscal 2027, Oracle expects total revenues to grow between 30% and 34% in constant currency and USD. Total cloud revenue is expected to grow between 64% and 70% in constant currency and between 65% and 71% in USD. Non-GAAP earnings per share are expected to be between $1.83 and $1.91 in constant currency and between $1.85 and $1.93 in USD, representing growth of 19% to 23% in constant currency and 21% to 25% in USD, excluding a one-time gain from the second quarter of fiscal 2026.
For full fiscal 2027, Oracle now expects total revenue of at least $90 billion and non-GAAP EPS of $8.10. The board declared a quarterly cash dividend of $0.50 a share, payable October 23, 2026, to stockholders of record as of October 9, 2026.
The company also described a new Oracle AI Data Platform that automatically generates an enterprise ontology, and a 100% agentic AI health care management and electronic health records system.