Oracle(US:ORCL)2025-12-10 21:14Financial Performance - Q2 total revenues reached $16.1 billion, up 14% in USD and 13% in constant currency[2] - Total revenues for Q2 fiscal 2026 reached $16.0 billion, a 14% increase compared to $14.0 billion in Q2 fiscal 2025[16] - Total revenues for the six months ended November 30, 2025, were $30.98 billion, representing a 13% increase compared to $27.36 billion in the same period of 2024[24] - Total revenues for Q2 Fiscal 2026 reached $15,058 million, reflecting a 13% growth compared to the same quarter last year[36] - The total revenues for the year-to-date period amounted to $30.9 billion, reflecting strong performance across the business[37] Income and Earnings - Q2 GAAP net income was $6.1 billion, up 95% year-over-year, while non-GAAP net income increased by 57% to $6.6 billion[3][5] - Net income for Q2 fiscal 2026 was $6.13 billion, a significant increase of 95% compared to $3.15 billion in Q2 fiscal 2025[16] - The company reported a net income of $9.06 billion for the six months ended November 30, 2025, a 49% increase from $6.08 billion in the same period of 2024[21] - Net income increased to $9.062 billion, a 49% rise from $6.086 billion in the previous year, resulting in diluted earnings per share of $3.11, up 46% from $2.13[24] - GAAP net income for Q2 Fiscal 2026 was $15,420 million, up from $12,440 million in Q2 Fiscal 2025, marking a 24% increase[33] Earnings Per Share - GAAP earnings per share rose by 91% to $2.10, and non-GAAP earnings per share increased by 54% to $2.26[3][5] - Diluted earnings per share for Q2 fiscal 2026 were $2.10, up 91% from $1.10 in Q2 fiscal 2025[16] - Diluted earnings per share of $3.11, up 46% from $2.13[24] Cash Flow and Expenses - Operating cash flow for the last twelve months was $22.3 billion, reflecting a 10% increase[4] - Free cash flow for the trailing four quarters was $9,542 million, with a year-over-year growth rate of 19%[33] - Operating cash flow as a percentage of net income was 145% in Q2 Fiscal 2026, down from 173% in the previous year, indicating a change in cash efficiency[33] - Total operating expenses for the six months ended November 30, 2025, were $21.98 billion, a 15% increase from $19.16 billion in the same period of 2024[21] Cloud Business - Cloud revenues grew by 34% in USD to $8.0 billion, with Cloud Infrastructure (IaaS) revenue up 68% to $4.1 billion[6] - Oracle's Multicloud database business grew by 817% in Q2, indicating strong market demand[5] - Cloud revenues for the six months ended November 30, 2025, were $15.16 billion, representing a 31% increase from $11.56 billion in the same period of 2024[21] - Cloud revenues for Q2 Fiscal 2026 were $7,970 million, representing a 31% growth year-over-year[36] Assets and Liabilities - Total current assets rose to $34.366 billion, up from $24.579 billion as of May 31, 2025, driven by increases in cash and cash equivalents and trade receivables[29] - Total assets increased to $204.984 billion from $168.361 billion, reflecting growth in both current and non-current assets[29] - The company’s total non-current liabilities increased to $136.732 billion from $114.749 billion, primarily due to higher borrowings[29] Research and Development - Research and development expenses for Q2 fiscal 2026 were $668 million, compared to $657 million in Q2 fiscal 2025, reflecting a 2% increase[17] Tax and Amortization - The effective GAAP tax rate for Q2 fiscal 2026 was 3.3%, compared to 7.1% in Q2 fiscal 2025[17] - The effective GAAP tax rate for the first half of fiscal 2026 was 7.2%, compared to 7.3% in the same period of 2025[25] - Estimated future annual amortization expense related to intangible assets is projected to be $812 million for the remainder of fiscal 2026[25] Dividends and Stock-Based Compensation - The board declared a quarterly cash dividend of $0.50 per share, payable on January 23, 2026[7] - Total stock-based compensation for the six months ended November 30, 2025, was $2.280 billion, compared to $2.176 billion in the same period of 2024[25] Strategic Focus - Oracle is committed to chip neutrality, focusing on collaboration with various CPU and GPU suppliers[5] - The company is building 72 Oracle Multicloud datacenters, enhancing its cloud infrastructure capabilities[5] - The financial results indicate a robust growth trajectory, with a focus on strategic initiatives and market expansion[39] - Future performance will be evaluated based on these non-GAAP measures, which are integral to the company's operational decision-making[39]