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Oracle Q1 Earnings Match Estimates, Cloud Growth Fuels Revenue Rise
OracleOracle(US:ORCL) ZACKSยท2025-09-10 19:11

Core Insights - Oracle reported first-quarter fiscal 2026 non-GAAP earnings of $1.47 per share, meeting estimates and increasing 6% year over year in USD [1][10] - Revenues rose 12% year over year to $14.9 billion, driven by significant AI cloud contracts [2][10] Revenue Breakdown - Revenues from the Americas increased 15.4% year over year to $9.66 billion, accounting for 64.7% of total revenues [3] - Europe/Middle East/Africa revenues climbed 7.8% to $3.48 billion, contributing 23.3% of total revenues [3] - Asia Pacific revenues increased 4.5% to $1.78 billion, representing 11.9% of total revenues [3] Cloud Revenue Performance - Total cloud revenues surged 28% year over year to $7.2 billion, with cloud infrastructure consumption revenue up 57% [5][10] - Cloud application revenue was $3.8 billion, up 11% year over year [5] - Autonomous Database revenues increased 43% year over year [5] Operating Performance - Non-GAAP operating income was $6.2 billion, up 9% year over year [11] - Total operating expenses increased 14% year over year to $8.69 billion [11] Balance Sheet and Cash Flow - As of August 31, 2025, Oracle had cash and cash equivalents of $11 billion [12] - Operating cash flow was $8.1 billion, up from $7.4 billion in the prior year [12] - Free cash flow was negative $362 million due to $8.5 billion in capital expenditures [12] Future Guidance - For Q2 fiscal 2026, Oracle expects total revenues to grow 12% to 14% in constant currency [15] - Cloud Infrastructure is projected to grow 77% to $18 billion in fiscal 2026 [16] - Capital expenditures are expected to increase to around $35 billion in fiscal 2026 [18]