Oracle Q4 Net Income Up 23% to $4.2B with 47% Cloud Growth
ORCL•Oracle’s Q4 net income grew 23% to $4.2 billion on a 21% revenue rise to $19.2 billion, driven by a 47% increase in cloud revenues to $9.9 billion. Remaining performance obligations surged 363% to $638 billion, reflecting $75 billion in prepaid AI hardware contracts.
1. Q4 Financial Results
Oracle posted net income of $4.2 billion, up 23%, and revenues of $19.2 billion, a 21% increase for the quarter ended May 31, 2026. GAAP operating income rose 20% to $6.1 billion, while non-GAAP operating income climbed 22% to $8.6 billion.
2. Cloud Revenue Performance
Cloud revenue grew 47% to $9.9 billion, driven by a 93% surge in Infrastructure as a Service revenues and a 10% increase in SaaS. This cloud expansion offset a 2% decline in on-premise software revenues.
3. Annual Results and Cash Flow
For fiscal 2026, total revenue reached $67.4 billion, up 17%, with cloud revenue up 39% to $34.0 billion. Operating cash flow rose 54% to $32.0 billion, while free cash flow was negative $23.7 billion due to investments in cloud infrastructure.
4. RPO Growth and AI Contracts
Remaining performance obligations jumped 363% year-on-year to $638 billion, including $75 billion in prepaid AI hardware contracts. The company raised $43 billion in debt and $5 billion in equity financing, and plans to secure about $40 billion in capital markets for fiscal 2027.
