Oracle(US:ORCL) ZACKS·2025-12-11 17:56Core Insights - Oracle reported strong second-quarter fiscal 2026 results with non-GAAP earnings of $2.26 per share, exceeding estimates by 38.65% and showing a 54% year-over-year increase in USD [1] - Revenue growth was driven by a 14% increase year-over-year to $16.1 billion, primarily from cloud infrastructure, which is becoming a preferred choice for AI workloads [2] Revenue Breakdown - Revenues from the Americas rose 17.2% year-over-year to $10.47 billion, making up 65.2% of total revenues [3] - Europe/Middle East/Africa revenues increased 11.2% to $3.76 billion, contributing 23.4% of total revenues, while Asia Pacific revenues grew 4.9% to $1.83 billion, representing 11.4% of total revenues [3] Cloud Performance - Cloud Infrastructure revenues surged 68% in USD to $4.1 billion, with GPU-related revenues growing 177% [4] - Total cloud revenues (SaaS plus IaaS) increased 34% in USD to $8 billion, now accounting for 50% of Oracle's overall revenue [7] Software and Services - Software revenues declined 3% to $5.9 billion, with software license revenues down 21% to $939 million, reflecting a shift to cloud solutions [8] - Services revenues increased 7% to $1.43 billion, with Oracle operating 147 live customer-facing regions and planning 64 more [9][10] Financial Metrics - Non-GAAP total operating expenses rose 17% to $9.3 billion, while non-GAAP operating income increased 10% to $6.7 billion, resulting in a 42% operating margin [12] - As of November 30, 2025, Oracle had cash and cash equivalents of $19.2 billion, with operating cash flow of approximately $0.8 billion [13] Future Guidance - For Q3 fiscal 2026, Oracle expects total cloud revenue growth of 37% to 41% in constant currency and 40% to 44% in USD [18] - Full-year fiscal 2026 revenue is projected at $67 billion, with an additional $4 billion expected in fiscal 2027 due to new commitments [19]