Oracle Corporation Q4 2026 Earnings Recap

Oracle shares fell 10.5% following earnings as investors reacted negatively to margin compression amid a heavy infrastructure investment cycle, despite solid revenue growth and strong cloud demand.

Key Takeaways

• Q4 revenue grew 21% in USD to $19.2 billion, driven by 93% growth in cloud infrastructure and double-digit growth in cloud applications.
• Non-GAAP operating income increased 22% to $8.6 billion, but gross margins declined due to costs ramping up new data centers and accelerated infrastructure revenue.
• Operating margin edged up slightly, supported by cost efficiency actions in sales and marketing.
• Full-year revenue surpassed $67 billion, up 16%, with non-GAAP EPS rising 27% including one-time gains (20% excluding).
• Remaining performance obligations (RPO) neared $638 billion, up 363%, providing visibility into future growth but highlighting ongoing significant capital expenditures ($4.8 billion net CapEx).