Oracle Corp.

Q4 & FY26 results beat expectations; cloud is the driver - Revenue: $19.2B in Q4 (+21% YoY in USD); FY26 revenue: surpassed $67B for first time. - Cloud momentum: - Cloud Infrastructure revenue: +93% YoY (AI workloads + database services demand). - Cloud Apps (SaaS) revenue: +10% YoY. - Profitability (non-GAAP): Q4 non-GAAP operating income $8.6B (+22% YoY); non-GAAP EPS $2.11 (+24% YoY). - Big underlying cash flow: Operating cash flow $32B (+54% FY26) (capital intensity acknowledged but cash generation strong). - RPO (visibility): $638B at FY26 end (+363%)—expected 12% recognized in next 12 months and 34% between 13–36 months (with acceleration expected).

FY27 outlook is strong, explicitly tied to RPO conversion and ongoing megawatt ramps - FY27 revenue growth: +34% in constant currency (exceeding the prior long-term revenue CAGR target cited at Analyst Day). - FY27 gross margin: expected to step down due to data center ramp timing and mix, with the expectation that infrastructure margins improve rapidly as contractual revenue levels are reached. - FY27 non-GAAP EPS: $8.05 (+18% constant currency) *excluding* net one-time investment gains booked in FY26. - Q1FY27 guidance: - Total revenue: +27% to +29% YoY (US dollars). - Cloud revenue: +58% to +64%. - Non-GAAP EPS: $1.72–$1.76 (+17% to +20% YoY in USD). - Second-half acceleration: management expects earnings/revenue to accelerate as more capacity/megawatts come online.

OCI (AI infrastructure) is scaling fast with heavy customer-backed contracting + high utilization - AI infrastructure contracts: $67B signed in Q4; mostly BYOH or prepaid. - Total BYOH/prepaid contracts: increased to $75B, with management claiming no degradation in margins versus other contract types. - Delivery pace: delivered >1.2 GW to customers in FY26; FY27 Q1 delivery approaching ~1 GW, nearly matching prior 4 quarters combined. - GPU utilization: 97.5% global utilization; renewal dynamics showed strong demand (despite renewals, capacity was rapidly reallocated to other customers rather than left idle). - Scale-out of sites: multiple large sites described with specific schedules—investor takeaway is execution confidence and rapid capacity build.