ORCL ORACLE CORP
Price Chart
Executive Summary
Oracle reported record Q4 and FY2026 results, with Q4 revenue of $19.2B (+21% YoY) and GAAP EPS of $1.45 (+21% YoY). Cloud revenue drove the beat, with IaaS surging 93% to $5.8B and RPO reaching $638B (+363% YoY). FY2027 revenue guidance was confirmed at $90B and non-GAAP EPS guidance was raised to $8.05 (18% growth). As a preferred shareholder in ORCL-PD, the credit story is strongly positive—record cash flow, debt paydown capacity, and massive customer prepayments ($75B) de-risk the capital program. However, the massive capex program ($55.7B in FY2026) and negative FCF (-$23.7B) inject credit risk for the preferred, tempering the otherwise bullish narrative.
Key Financial Metrics
Actionable Insight
For ORCL-PD preferred holders, the issuer's record revenue and cash flow provide strong coverage for the $1,625-per-share preferred dividend. The massive capex spend ($55.7B) and planned $40B additional FY2027 financing are manageable given $75B in customer prepayments, but leverage (total debt ~$130B) will remain elevated. Monitor the pace of debt paydown and any credit rating actions. The preferred is a hold with modest upside as the credit story improves with cash flow growth.
Key Facts
- Q4 FY2026 revenue $19.2B, up 21% YoY, above $19.09B consensus
- Q4 GAAP diluted EPS $1.45, up 21% YoY
- Q4 Cloud IaaS revenue $5.8B, up 93% YoY
- RPO $638B, up 363% YoY, up $85B sequentially
- FY2026 total revenue $67.4B, up 17% YoY; operating cash flow $32.0B, up 54%
- FY2027 revenue guidance confirmed at $90B; non-GAAP EPS guidance raised to $8.05
- Customer prepayments and customer-supplied hardware for AI contracts now total $75B
- FY2026 free cash flow was -$23.7B, reflecting heavy capex of $55.7B
- Preferred stock dividend declared at $1,625 per share (per 8-K Item 8.01)
- Issuer expects to raise ~$40B in FY2027 via debt and equity including $20B ATM equity program
Financial Impact
Record quarterly and annual revenue, with cloud now 51% of total revenue. RPO growth to $638B signals multi-year revenue visibility. Capex intensity is a credit concern but is partially offset by $75B in customer prepayments/supplied hardware.
Risk Factors
- Free cash flow was negative -$23.7B in FY2026 due to heavy capex; may pressure credit metrics
- Total notes payable and borrowings rose to ~$129.5B from ~$92.6B YoY, increasing leverage
- Issuer plans to raise ~$40B more in FY2027 including $20B ATM equity, diluting common but structurally subordinated to preferred
- Software segment revenue declined 2% QoQ and 1% YoY, reflecting ongoing on-premise to cloud migration headwinds
- Guidance assumes continued high AI cloud demand; any slowdown could pressure the capex ROI
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-265848 |
| Document: orcl-20260610.htm | 0001193125-26-265848 |
| Document: 0001193125-26-265848-index-headers.html | 0001193125-26-265848 |
| Document: 0001193125-26-265848-index.html | 0001193125-26-265848 |
| Document: 0001193125-26-265848.txt | 0001193125-26-265848 |
| 8-K Data (Synthetic) | 0001193125-26-265848 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 10, 2026
4d ago
|
8-K
| $53.06 awaiting T+5 | awaiting T+5 | — | $184.13 (+247.02%) |
|
May 31, 2026
14d ago
|
ANALYST-UPGRADE
| $162.75 $152.82 | ▼ −6.10% | ▼ −3.91% | $184.13 (+13.14%) |
|
May 24, 2026
21d ago
|
ANALYST-UPGRADE
| $173.27 $171.80 | ▼ −0.85% | ▼ −1.76% | $184.13 (+6.27%) |
|
May 12, 2026
4w ago
|
8-K
| $56.38 $54.07 | ▼ −4.10% | ▼ −2.94% | $184.13 (+226.59%) |
|
May 1, 2026
6w ago
|
ANALYST-UPGRADE
| $162.75 $152.82 | ▼ −6.10% | ▼ −3.91% | $184.13 (+13.14%) |
|
Apr 24, 2026
7w ago
|
ANALYST-UPGRADE
| $173.27 $161.39 | ▼ −6.85% | ▼ −7.76% | $184.13 (+6.27%) |
|
Apr 6, 2026
9w ago
|
8-K
| $45.02 $47.84 | ▲ +6.26% | ▲ +2.13% | $184.13 (+309.00%) |
|
Mar 30, 2026
11w ago
|
Court Ruling
| $138.79 $142.81 | ▲ +2.90% | ▼ −1.40% | $184.13 (+32.67%) |
|
Feb 28, 2026
15w ago
|
Institutional Cluster
| $149.18 $151.54 | ▲ +1.58% | ▲ +2.79% | $184.13 (+23.43%) |
US Market Status
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