Oracle Corporation, the Texas-based enterprise software and cloud infrastructure company listed on the NYSE as ORCL, reported fourth quarter revenue of $19.2 billion, a 21 percent increase in US dollar terms and 20 percent at constant currency. Cloud revenue, combining infrastructure and software-as-a-service, reached $9.9 billion for the quarter, up 47 percent, with the infrastructure side of the business accounting for the sharpest growth.
Cloud infrastructure revenue, which Oracle classifies as IaaS, came in at $5.8 billion for the quarter, up 93 percent in US dollar terms and 92 percent at constant currency. Cloud applications revenue, classified as SaaS, reached $4.1 billion, up 10 percent. Software revenues fell 2 percent to $6.8 billion, which Oracle attributed to customers migrating from on-premise licenses to cloud-based services. Services revenue was $1.5 billion, up 13 percent, and hardware revenue reached $0.9 billion, up 9 percent.
On earnings, Oracle reported Q4 GAAP operating income of $6.1 billion, up 20 percent, while non-GAAP operating income reached $8.6 billion, up 22 percent. GAAP net income available to common shareholders was $4.2 billion, up 23 percent. Non-GAAP net income available to common shareholders was $6.2 billion, up 26 percent. GAAP earnings per share came in at $1.45, up 21 percent, while non-GAAP earnings per share reached $2.111, up 24 percent.
For the full fiscal year 2026, Oracle reported total revenues of $67.4 billion, up 17 percent. Cloud revenues for the year were $34.0 billion, up 39 percent, with IaaS contributing $18.1 billion, up 77 percent, and SaaS contributing $15.9 billion, up 11 percent. Full-year software revenues were $24.5 billion, down 1 percent, while services revenues were $5.7 billion, up 10 percent, and hardware revenues were $3.1 billion, up 5 percent. Full-year GAAP EPS reached $5.83, up 34 percent. Non-GAAP EPS was $7.631, up 27 percent. Operating cash flow for the year was $32.0 billion, up 54 percent, while free cash flow was negative $23.7 billion as the company continued spending on cloud infrastructure build-out.
One figure that stands out beyond the revenue results is the size of Oracle's remaining performance obligations, or RPO, which ended the quarter at $638 billion. That represents a 363 percent year-over-year increase and a sequential jump of $85 billion from the end of Q3. Oracle said the increases in both quarters were driven by large-scale AI contracts structured as prepayments: customers either paid Oracle in advance for GPU capacity, or bought and supplied their own GPUs to Oracle to operate. The prepaid and customer-supplied hardware portions of these contracts now total $75 billion, which Oracle said reduces the amount of capital it must raise independently to build AI data centers.
On the capital side, Oracle raised $43 billion in debt financing and $5 billion in equity financing during fiscal 2026. For fiscal 2027, the company expects to raise approximately $40 billion through a combination of debt and equity, including a previously announced $20 billion at-the-market equity issuance. Oracle said it does not expect to issue additional debt in calendar year 2026.
The company's Oracle Multicloud AI Database grew 404 percent in Q4, which Oracle described as its fastest-growing business on record. Oracle also said it plans to release a new AI version of the Cerner hospital and clinic patient care management system under its Oracle Health suite, and expects the update to push Oracle Health's overall growth rate to double digits in fiscal 2027.
For Q1 fiscal 2027, Oracle guided total revenue growth of 27 to 29 percent. Cloud revenue is expected to grow between 57 and 63 percent at constant currency and between 58 and 64 percent in US dollar terms. Non-GAAP EPS guidance for Q1 is $1.71 to $1.75 at constant currency and $1.72 to $1.76 in US dollar terms. For the full fiscal year 2027, Oracle maintained its prior guidance of $90 billion in total revenue and raised its non-GAAP EPS guidance to $8.05, representing 18 percent growth after adjusting for one-time investment gains recorded in fiscal 2026 from the sale of its Ampere chip business and Bloom Energy warrants.
The board of directors declared a quarterly cash dividend of $0.50 per share, payable on July 24, 2026, to stockholders of record as of July 10, 2026.
