Oracle Corporation
ORCL.US Full Coverage
Last updated:
Volume
52W avg
Day Range
52W High
52W Low
Market Cap
Div Yield
Forward P/E
P/B
Headlines
FY2026 Q4
Oracle posted a historic quarter as AI‑driven demand propelled total revenue 20% YoY in constant currency to $19.2 billion and accelerated Cloud Infrastructure revenue 92% CC, delivering non‑GAAP EPS of $2.11 (excluding a one‑time gain $2.03) versus expectations. The surge lifted remaining performance obligations 363% YoY to a record $638 billion, underpinned by $67 billion of AI infrastructure contracts and a $75 billion prepaid/bring‑your‑own‑hardware pipeline, while the company earmarks roughly $70 billion of capex through FY2027. Management reaffirmed its FY2027 revenue target of $90 billion and raised non‑GAAP EPS guidance to $8.05.
Remaining Performance Obligations (RPO)
$638B
+363% YoY
Cloud Infrastructure (IaaS) Revenue Growth (CC)
92%
+40 pps YoY
Q4 Non-GAAP EPS (ex-gain)
$2.03
+20% YoY
FY2027 Non-GAAP EPS Guidance
$8.05
Raised
FY2026 Free Cash Flow
($23.7B)
vs. ($0.4B) YoY
What We're Watching
Operational
Data Center Delivery Velocity
📅
Next Quarter
What to Monitor
Progress toward delivering the projected "approaching 1 gigawatt" of new capacity in Q1 FY27, a significant acceleration from the FY26 pace.
Why It Matters
This is the single most important operational metric for converting the massive $638B RPO into revenue. Meeting this accelerated delivery schedule is critical to achieving the FY27 revenue guidance.
Strategic
Customer-Funded CapEx Growth
📅
Ongoing
What to Monitor
The sequential growth in the $75 billion of RPO from prepaid and bring-your-own-hardware (BYOH) contracts.
Why It Matters
This model is central to Oracle's funding strategy. Its continued growth is essential to de-risk the balance sheet and demonstrate the ability to scale the infrastructure build-out without commensurate cash burn from Oracle.
Risk
Gross Margin Trajectory During Ramp-Up
📅
Next 1-2 Quarters
What to Monitor
The magnitude and duration of the gross margin "step down" guided for FY27. Any deviation from the expectation that margins will "improve rapidly" as data centers reach full capacity.
Why It Matters
While an annual step-down is guided, a deeper or more prolonged quarterly dip could impact profitability and investor sentiment during this peak investment phase, testing confidence in the long-term financial model.
Opportunity
SaaS Revenue Re-acceleration
📅
Next 2-3 Quarters
What to Monitor
Whether the reported Cloud Applications (SaaS) revenue growth rate begins to accelerate from the current 9% CC towards the 16% growth seen in SaaS deferred revenue.
Why It Matters
A re-acceleration would validate the strategy of embedding AI into applications, prove the business is more than just an infrastructure story, and provide a significant, higher-margin contributor to overall growth.
Strategic
Adoption of New AI Commercial Models
📅
Ongoing
What to Monitor
Commentary on the customer count and revenue contribution from the new token bundles and outcome-based pricing models for AI agents.
Why It Matters
These new models represent a crucial shift from selling infrastructure to capturing value from AI-driven business outcomes. Their success is key to the long-term monetization and margin potential of the entire AI software strategy.
