Oracle Corporation Q2 FY2026 earnings call

• RPO ended at $523.3 billion, with expected recognition in the next twelve months growing 40% year over year. - Total cloud revenue was up 33% at $8 billion, with cloud infrastructure revenue up 66% and cloud database services up 30%. - OCI operates 147 live customer-facing regions with 64 more planned, and delivered close to 400 megawatts of data center capacity and 50% more GPU capacity than Q1. - Launched Acceleron and other services, and added new AI models from Google, OpenAI, and xAI. - Cloud applications had 330 customer go-lives, with Fusion ERP, SCM, HCM, and NetSuite showing strong growth. - Health care business has 274 customers live on clinical AI agent, and new AI-based ambulatory EHR is generally available with US regulatory approval.

Cloud revenue, including applications and infrastructure, was up 33% at $8 billion, accounting for half of Oracle's overall revenue. Cloud infrastructure revenue was $4.1 billion, up 66% with GPU-related revenue growing 177%. Cloud database services revenue was up 30%, with Autonomous Database revenue up 43% and multi-cloud consumption up 817%. Cloud applications revenue was $3.9 billion, up 11%, and strategic back-office applications revenue was $2.4 billion, up 16%. Remaining Performance Obligations (RPO) ended the quarter at $523.3 billion, up 43% from the previous year and up $68 billion since August.

• FY 2026 revenue expectation remains unchanged at $67 billion. - FY 2027 expects $4 billion additional revenue due to added RPO. - Q3 guidance: cloud revenue expected to grow 37%-41% in constant currency and 40%-44% in USD; total revenues expected to grow 16%-18% in constant currency and 19%-21% in USD; non-GAAP EPS expected to grow 12%-14% in constant currency ($1.64-$1.68) and 16%-18% in USD ($1.70-$1.74).

Q: How much money does Oracle need to raise to fund its AI growth plans ahead?

A: Clay McGork stated Oracle has various models like customers bringing their own chips or vendors renting capacity, minimizing borrowing needs, and is committed to maintaining investment-grade debt rating, expecting less than some analyst estimates.

Q: How to convert a data center from one customer to another?

A: Clay McGork said capacity transfer is on the order of hours, with OCI's secure base and constant customer demand allowing quick reallocation.

Q: Why is Oracle's applications business expected to accelerate?

A: Mike Cecilia mentioned Oracle's complete application suites with baked-in AI, 400+ AI features in Fusion, 274 customers on clinical AI agent, deferred revenue growth at 14%, and unique position with AI data platform and integrated offerings.