Oracle took in $67.4 billion in revenue for fiscal 2026, up 17% on the year, and described the result as a record. The company reported its fourth-quarter and full-year figures on June 10.
Cloud was the engine. Cloud revenue, which combines infrastructure and applications, rose 39% over the year to $34.0 billion. In the fourth quarter alone it climbed 47% to $9.9 billion, with cloud infrastructure up 93% and cloud applications up 10%. Total quarterly revenue reached $19.2 billion, a 21% increase.
The older businesses told a different story. Software revenue fell 1% for the year to $24.5 billion, which Oracle attributed to customers continuing to move from on-premise software to the cloud. Services brought in $5.7 billion, up 10%, and hardware $3.1 billion, up 5%.
Profit and cash
GAAP operating income for the year was $20.6 billion, up 17%. On a non-GAAP basis it was a record $28.9 billion, up 16%. GAAP net income available to common shareholders reached $17.0 billion, up 36%, and earnings per share rose 34% to $5.83. Non-GAAP earnings per share came to $7.631, up 27%.
Oracle reported record operating cash flow of $32.0 billion, up 54%. Free cash flow, though, was negative $23.7 billion. The company said that reflects its continued investment in the growth of its cloud infrastructure business.
One footnote is worth reading. The quarter and the year include one-time net investment gains. Without them, non-GAAP earnings per share for fiscal 2026 would have been $6.83, up 13% rather than 27%.
The AI backlog
Remaining performance obligations, the contracted business Oracle has yet to deliver, ended the quarter at $638 billion. That is up 363% from a year earlier and $85 billion higher than at the end of the third quarter. Most of the increase in both quarters came from large AI contracts in which customers either prepaid Oracle for graphics processors or bought the chips and supplied them to Oracle. Those prepaid and customer-supplied portions now total $75 billion, which Oracle says substantially reduces the capital it needs to raise for its AI datacenters.
It still raised plenty. In fiscal 2026 the company took on $43 billion in debt financing and $5 billion in equity. For fiscal 2027 it expects to raise about $40 billion through a mix of debt and equity, including the $20 billion at-the-market equity issuance it announced earlier. Oracle said it does not expect to issue more debt in calendar 2026.
The Oracle Multicloud AI Database grew 404% in the fourth quarter, which the company called its fastest-growing business ever. It also expects a new AI version of the Cerner patient care system to lift Oracle Health growth into double digits in fiscal 2027.
Guidance
For the first quarter of fiscal 2027, Oracle expects total revenue growth of 27% to 29% and cloud revenue growth of 57% to 63% in constant currency. Non-GAAP earnings per share are forecast at $1.71 to $1.75 in constant currency. For the full year it confirmed its earlier revenue target of $90 billion and raised its non-GAAP earnings per share guidance to $8.05.
The board declared a quarterly dividend of $0.50 a share, payable on July 24, 2026 to shareholders of record on July 10.
