Oracle Corp (ORCL)

At an investor day on 28 October, Oracle set a goal of $225 billion or more in total revenue for FY30 and said free cash flow should turn positive in the second half of FY28 4. It also committed to limit new capital raising through FY30 to $20 billion 4.

Its latest reported quarter, the first of fiscal 2027, brought revenue of $19.3 billion on 10 September, up 30 percent, with cloud infrastructure revenue up 121 percent to $7.4 billion 3.

Free cash flow was negative $5 billion for the quarter, as Oracle kept investing to support its cloud infrastructure business 3.

Contracted work not yet delivered, which Oracle calls remaining performance obligations, rose $209 billion in a year to $664 billion 3. Oracle said it booked more than $30 billion of new AI cloud contracts in the quarter 3.

Amazon's 29 October results release named Oracle among the companies that signed new AWS agreements since its last report 5. Whether the data center build pays off on Oracle's schedule is the open question 4.

Larry Ellison founded Oracle in June 1977 and ran it as chief executive until September 2014 1. Safra Catz then led it as chief executive from September 2014 to September 2025 1.

By fiscal 2022 (the year ended 31 May 2022) Oracle's business was mostly recurring 6. Cloud services and license support, meaning subscriptions plus yearly fees for software customers already own, made up 71 percent of revenue 6. Total revenue was $42.4 billion, up 5 percent 6.

On 8 June 2022 Oracle closed its purchase of Cerner, a maker of digital systems for hospitals, for about $28.2 billion in cash 6. It borrowed $15.7 billion the same day under a bridge loan 6.

Operating margin, the profit left after running costs, fell to $10.9 billion in fiscal 2022 from $15.2 billion 6. Oracle said it expected certain litigation related charges not to recur 6.

In fiscal 2025 revenue grew 8 percent to $57.4 billion, led by cloud 7. Oracle said infrastructure cloud services and license support contributed 74 percent of the growth in that group of revenues 7. Hardware and services revenue fell 7.

Fiscal 2026 was the break 1. Revenue rose to $67.4 billion, up 17 percent, and Oracle said cloud infrastructure supplied 84 percent of the growth in cloud revenues 1. Cloud infrastructure revenue reached $18.1 billion from $10.2 billion 1.

Total cloud revenues rose to $34.0 billion in fiscal 2026 from $24.5 billion, and operating margin reached $20.6 billion, 31 percent of revenue 1. Oracle said higher infrastructure costs to support cloud infrastructure growth held margin as a share of revenue flat 1.

Contracted backlog jumped from $138 billion to $638 billion over fiscal 2026, which Oracle attributed to significant cloud contracts signed in the year 1. Capital spending rose from $21.2 billion to $55.7 billion, mostly on data centers 1.

Restructuring and other expenses rose $1.5 billion in fiscal 2026, mainly from the 2026 Restructuring Plan 1. The fiscal 2026 results also include a $2.7 billion gain on the sale of Oracle's stake in Ampere 1.

Paying for that build changed the balance sheet 1. Oracle issued $43.0 billion of senior notes in fiscal 2026 and had $129.5 billion of debt outstanding at 31 May 2026 1. It also sold $5.0 billion of mandatory convertible preferred stock 1.

In February 2026 Oracle opened a stock sale program of up to $20.0 billion and sold new notes 8. It used the whole stock program in the first quarter of fiscal 2027, issuing 141 million shares for $19.9 billion 2.

The top team changed in September 2025, when Clay Magouyrk and Mike Sicilia became chief executives and Catz became executive vice chair 1. Hilary Maxson joined as finance chief on 6 April 2026 9.

Cloud infrastructure

Oracle Cloud Infrastructure rents computing power, storage and networking, including graphics chips for training and running AI models 1. It brought in $18.1 billion in fiscal 2026, up from $10.2 billion 1.

In the first quarter of fiscal 2027 it grew 121 percent to $7.4 billion 3. Oracle said it delivered 850MW of added data center capacity and more than 300,000 GPUs to AI cloud customers 3.

Cloud applications

Oracle Cloud Applications are business programs for finance, supply chains, people and customers, rented by subscription 1. NetSuite is the suite aimed at small and mid-sized companies 1.

Cloud applications revenue was $15.9 billion in fiscal 2026 against $14.3 billion a year earlier 1. It grew 10 percent to $4.2 billion in the first quarter of fiscal 2027 3.

Software licenses and support

Customers buy licenses to run Oracle's database, middleware, Java and business applications on their own systems or in a cloud 1. Substantially all of them also buy support contracts 1.

Software license revenue was $4.7 billion and software support $19.8 billion in fiscal 2026 1. Oracle said software revenue fell 3 percent to $5.5 billion in the latest quarter as customers move to the cloud 3.

Hardware and services

Hardware, mainly Exadata database machines, servers and storage, was 5 percent of fiscal 2026 revenue, and services was 8 percent 1. Oracle relies on outside manufacturers for most hardware 1.

Where the revenue comes from

By region, the Americas brought in $44.5 billion in fiscal 2026, Europe, the Middle East and Africa $15.3 billion and Asia Pacific $7.6 billion 1. No single customer was 10 percent or more of revenue 1.

Oracle spent $10.3 billion on research and development in fiscal 2026, against $9.9 billion in fiscal 2025 1.

Data centers and offices

Oracle said it has about 181 data center locations worldwide, almost all leased 1. Its Austin, Texas headquarters covers about 0.9 million square feet and it leases its main hardware factory in Hillsboro, Oregon 1.

About 11.9 million square feet of office space, or 45 percent, is sublet or being marketed for sublease or disposition 1.

People

Oracle had about 141,000 full-time employees at 31 May 2026 1. Ellison is executive chair and chief technology officer, Magouyrk and Sicilia are chief executives and Maxson is finance chief 1.

Of those employees, about 43,000 work in research and development and about 34,000 in services, the largest two groups 1.

Rivals

Oracle names Adobe, Alphabet, Amazon, Cisco, Intel, IBM, Microsoft, Salesforce and SAP as large direct competitors, along with Hewlett-Packard Enterprise and Workday 1. Amazon and Oracle are also partners: Amazon's release lists Oracle among new AWS agreements 51.

Current problems

A shareholder filed a putative class action against Oracle on 3 February 2026, alleging misleading statements about its cloud infrastructure business 2. Oracle says it has meritorious defenses 1.

A Dutch privacy class action against Oracle, filed in 2020, was sent back to the Court of Appeal after the Supreme Court ruled on 17 July 2026 2.

The umbrella, in words

Oracle sells under its own name plus NetSuite, Java, MySQL, Exadata and the Cerner health systems it bought in 2022 136.

Exhibit 21 to the annual report lists eight subsidiaries, among them Oracle America in Delaware, Oracle EMEA Holdings in Ireland and Oracle International Holdings in Bermuda 10.

Oracle is the majority shareholder of two listed companies, Oracle Financial Services Software in India and Oracle Corporation Japan 1. It sold its investment in Ampere Computing, an earlier minority holding, for a $2.7 billion gain in fiscal 2026 1.

Control sits with a founder-led board: Ellison has been a director since June 1977 and Executive Chair since September 2014 1.

At its investor day on 28 October, Oracle said it expects total revenue to grow more than 35 percent a year from FY26 through FY30, to $225 billion or more 4. It also set non-GAAP operating margin of 40 percent or more and non-GAAP earnings per share of $21 or more for FY30 4.

Oracle said spending on data centers peaks in FY27 and FY28 and steps down in FY29, supporting free cash flow of at least $30 billion in FY29 4. It expects free cash flow to turn positive in the second half of FY28 4.

Oracle said growth will be self-funded beginning in FY29 and net debt to adjusted EBITDA will be below 3.5 times that year 4. The company committed to raise no more than $20 billion of new money through FY30, expected to be $10 billion of equity and $10 billion of gross debt 4.

As of 31 May 2026 about $6.3 billion remained available under Oracle's stock repurchase program, which has no expiration date 1.

For fiscal 2027 Oracle reaffirmed an outlook of at least $90 billion of total revenue and non-GAAP earnings per share of $8.10 4.

For the second quarter of fiscal 2027 Oracle guided total revenue growth of 30 to 34 percent and total cloud revenue growth of 65 to 71 percent in US dollars 3. It guided non-GAAP earnings per share of $1.85 to $1.93 in US dollars 3.

Oracle expects capital spending to keep rising in fiscal 2027 and later years as it adds data center capacity and opens data centers in new regions 1.

In the Delaware securities case, Oracle must respond to the amended complaint by 16 September 2026, and any motion to dismiss would be fully briefed by 18 December 2026 2.

Past

Oracle's revenue rose from $37 billion in fiscal 2016 to $67 billion in fiscal 2026, growing 6.2% a year over ten filed years, and rose in 9 of 9 years with no fall from a peak. Net income was positive in all 10 of those years. Over the three fiscal years to 2026-05-31, the diluted share count grew about 1.8% a year, and dividends and buybacks returned about 24% of operating cash flow over those three years. Officers and directors filed 27 sales and 1 purchase of their own stock on the open market in the year to 2026-10-19, buying about $3 million. 1

Present

In its latest annual figures for the fiscal year ended 2026-05-31, Oracle reported revenue of $67 billion and a profit of $17 billion. Return on equity was about 40 cents of profit for every dollar of shareholders' money, it owed about 84 cents per dollar of assets, and its share count grew 1.7% over the year. Oracle's revenue of $67 billion in fiscal 2026 ranks in the top 1% by size among 218 graded names in its industry family, with a net margin of 25.4% ranking in the top 9%, though revenue growth of 10.5% a year over the last three filed years ranks in the bottom 46%. 21

The chief executive is Magouyrk, Clayton M. , filing under that title since 2025-09-26 with 1.1 years in the role, in the bottom 16% of its family. The 20 officers and directors filing in the last fifteen months have been on the record a median of 5.9 years, in the top 39% of its family. 1

Future

A quarterly report (Form 10-Q) for the quarter ending 2026-11-30 is due by 2027-01-09. An annual report (Form 10-K) for the fiscal year ending 2027-05-31 is due by 2027-07-30. 3

Revenue grew 10.5% a year over the last three filed years against 6.2% over all 10 years, speeding up, and the newest year grew 17.4%. Research spending grew 6% a year and capital spending grew 85.7% a year. Revenue of $67 billion in fiscal 2026 came in 9.5% above the $62 billion its prior three years' pace pointed to, and net income of $17 billion came against a prior three-year average of $10 billion. 1

Cash of $31 billion against debt of $130 billion leaves negative 37.5% of its assets as net cash, in the bottom 4% of its family, and cash from operations less capital spending is negative 35.2% of revenue, in the bottom 18%. 1

How the company operates

By geography, the Americas accounted for 66% of revenue, EMEA 23%, and Asia Pacific 11%. 2

New moves

On 2026-05-12, Oracle filed a Form 8-K reporting an officer or director change. On 2026-06-23, Oracle filed a Form 424B5 shelf offering, selling securities off a shelf. On 2026-02-05, Oracle filed a Form 8-K reporting a major agreement signed. 3

On 2026-10-19, CNBC reported that credit stress is threatening to unwind the AI bull, with all eyes on Oracle to hold the line. On 2026-10-08, CNBC reported that Nvidia, Oracle, CoreWeave and other AI stocks sank on OpenAI revenue report. 4