Oracle Q2 2026 earnings: AI-driven cloud demand pushes backlog to record $523 billion
Oracle's revenue and cloud sales accelerated on AI-driven demand, with a record backlog of future contracted business, even as heavy data-center spending ramped up.
| Q2 2026 | Reported |
|---|---|
| EPS | $2.10 |
| Revenue | $16.06B |
Figures as reported by the company to the SEC for the quarter ended November 30, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Revenue rose to $16.1 billion, up 14% from a year earlier, as growth in cloud services more than offset the slower legacy software-license business.
- Cloud revenue jumped 34% to $8.0 billion. Cloud infrastructure (renting out data-center computing power) surged 68% to $4.1 billion on AI-related demand, while cloud applications (business software delivered online) grew a more modest 11% to $3.9 billion.
- Reported (GAAP) earnings per share of $2.10 was up 91% year over year, but that increase was boosted by a one-time $2.7 billion pretax gain from selling chip designer Ampere Computing to SoftBank; Oracle’s adjusted (non-GAAP) EPS, which excludes that gain, was $2.26, up 54%.
- Remaining performance obligations - contracted future revenue not yet booked as sales - jumped 15% in a single quarter to $523 billion, driven by large new multi-year cloud and AI computing commitments from customers including Meta and Nvidia.
- To meet that demand Oracle is sharply increasing spending on new data centers; despite healthy trailing-twelve-month margins (operating margin near 31%, net profit margin above 25%), the heavy build-out spending weighs on cash left over after investment.
- For the current (fiscal third) quarter, Oracle guided to adjusted EPS of $1.70 to $1.74 and revenue growth of 19% to 21%, pointing to continued acceleration in cloud demand.
- Chairman Larry Ellison framed the quarter around AI, calling AI model training on public data “the largest, fastest-growing business in history” and saying AI reasoning over private company data would become an even larger opportunity.
Q2 2026 in context
| Metric | Nov 2025 | Nov 2024 | Change |
|---|---|---|---|
| Revenue | $16.1B | $14.1B | +14.2% |
| Net income | $6.1B | $3.2B | +94.7% |
| Free cash flow | -$10.0B | -$2.7B | -273.9% |
| Diluted EPS | $2.10 | $1.10 | +90.9% |
| Operating margin | 29.5% | 30.0% | -0.6 pts |
| Net margin | 38.2% | 22.4% | +15.8 pts |
Figures for the quarter ended Nov 2025 and the quarter ended Nov 2024, as reported to the SEC.
How the stock took it
Oracle Corp closed at $223.01 on Dec 10, 2025, the last session before the report, and at $189.97 on Dec 12, 2025, the first session after it — -14.8% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| Sep 10, 2025 | $241.51 | $307.86 | +27.5% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · Futurum Group · The Motley Fool (earnings call transcript)