Financial Performance Overview
Total Revenues: For the second quarter of fiscal 2026, revenues reached 16,058 million, a 14% increase compared to 14,059 million in the prior year period.
Net Income: Net income for the quarter is 6,135 million, growing from 3,151 million in the same quarter last year.
Operating Margin: The GAAP operating margin was 29%, compared to 30% in the previous year.
Earnings Per Share: Diluted EPS for the quarter was 1.10, compared to 2.10 in the prior year period.
Segment Results
Cloud and Software: This business represented 86% of total revenues on a trailing four-quarter basis.
Cloud Infrastructure: Revenue grew by 68% in reported currency to 4,079 million for the three months ended November 30, 2025.
Cloud Applications: Revenue increased 11% in reported currency to 3,898 million for the same period.
Hardware: Revenue rose 7% to 776 million, primarily due to growth in Oracle Exadata and other strategic offerings.
Services: Revenue increased 7% to 1,428 million, driven by an increase in consulting services.
Key Corporate Developments
Ampere Transaction: On November 25, 2025, Oracle received 4.3 billion in cash for its interests in Ampere Computing, recording a realized gain of 2.7 billion.
Senior Notes Issuance: In September 2025, Oracle issued 18.0 billion in fixed-rate senior notes for purposes including capital expenditures and debt repayment.
Capital Expenditures: Expenditures increased to 20.5 billion for the first half of fiscal 2026, compared to 6.3 billion in the prior year, to support data center expansion.
Restructuring: Management initiated the 2026 Restructuring Plan with estimated costs up to 1.6 billion to improve operational efficiencies.
Legal and Tax Matters
Privacy Class Action: Oracle is defending a class action in the Netherlands regarding its Data Management Platform and GDPR compliance; the case was referred back to the District Court of Amsterdam for a decision on the merits.
One, Big, Beautiful Bill Act: Following this U.S. legislation signed on July 4, 2025, Oracle recorded a net tax expense of 958 million in the first quarter of fiscal 2026.
Shareholder Returns
Dividends: A quarterly cash dividend of 0.50 per share was declared in December 2025.
Stock Repurchases: As of November 30, 2025, 6.3 billion remained available under the stock repurchase program.
Oracle Corporation Income Statement Summary
Q2 Fiscal Year 2026
(In millions, except percentages)
| Item | Nov 30, 2025 (2026 Q2) | Nov 30, 2024 (2025 Q2) | YoY Growth | % of Total Revenue |
| Revenues: | ||||
| Cloud and Software | $13,854 | $12,001 | 15% | 86% |
| Hardware | $776 | $728 | 7% | 5% |
| Services | $1,428 | $1,330 | 7% | 9% |
| Total Revenues | $16,058 | $14,059 | 14% | 100% |
| Total Operating Expenses | $11,327 | $9,839 | 15% | 70.5% |
| Operating Income | $4,731 | $4,220 | 12% | 29.5% |
| Interest Expense | $(1,057) | $(866) | 22% | – |
| Non-operating Income, net* | $2,668 | $367 | 627% | – |
| Income Before Taxes | $6,342 | $3,390 | 87% | – |
| Provision for Income Taxes | $207 | $239 | -13% | – |
| Net Income | $6,135 | $3,151 | 95% | 38.2% |
*Note: The significant increase in non-operating income is primarily due to a $2.7 billion realized gain from the sale of the investment in Ampere Computing.
Key Analysis and Segment Revenue
1. Revenue Composition:
- Cloud and Software: Remains the primary engine, representing 86% of total revenue.
- Oracle Cloud Infrastructure (OCI): The strongest growth driver, with revenue reaching $4.079 billion, a 68% year-over-year increase.
- Cloud Applications (SaaS): Revenue totaled $3.898 billion, growing 11% year-over-year.
2. Profitability:
- Operating Margin: Standing at 29% this quarter, slightly down from 30% in the previous year. This is attributed to increased infrastructure costs required to expand data center capacity.
- Net Income: Surged by 95% to $6.135 billion, largely bolstered by the one-time gain from the Ampere investment sale.
3. Major Expenses:
- Research and Development (R&D): Totaled $2.561 billion, representing approximately 16% of total revenue.
- Restructuring Charges: Increased significantly to $406 million (from $84 million last year) as the company executes its FY2026 restructuring plan to improve operational efficiency.
Oracle Corporation Condensed Consolidated Balance Sheets
(In millions, except percentages)
| ASSETS | Nov 30, 2025 | May 31, 2025 | % of Total Assets (Nov 30, 2025) | % Change from Fiscal Year End |
| Current Assets: | ||||
| Cash and cash equivalents | $19,241 | $10,786 | 9.4% | +78.4% |
| Marketable securities | $525 | $417 | 0.3% | +25.9% |
| Trade receivables, net | $9,440 | $8,558 | 4.6% | +10.3% |
| Prepaid expenses and other current assets | $5,160 | $4,818 | 2.5% | +7.1% |
| Total current assets | $34,366 | $24,579 | 16.8% | +39.8% |
| Non-current Assets: | ||||
| Property, plant and equipment, net | $67,875 | $43,522 | 33.1% | +56.0% |
| Intangible assets, net | $3,760 | $4,587 | 1.8% | -18.0% |
| Goodwill | $62,207 | $62,207 | 30.3% | 0.0% |
| Deferred income taxes | $11,531 | $11,877 | 5.6% | -2.9% |
| Other non-current assets | $25,245 | $21,589 | 12.3% | +16.9% |
| Total non-current assets | $170,618 | $143,782 | 83.2% | +18.7% |
| Total Assets | $204,984 | $168,361 | 100.0% | +21.8% |
| LIABILITIES AND EQUITY | Nov 30, 2025 | May 31, 2025 | % of Total Assets (Nov 30, 2025) | % Change from Fiscal Year End |
| Current Liabilities: | ||||
| Notes payable and short-term borrowings | $8,091 | $7,271 | 3.9% | +11.3% |
| Accounts payable | $10,140 | $5,113 | 4.9% | +98.3% |
| Deferred revenues | $9,940 | $9,387 | 4.9% | +5.9% |
| Other current liabilities | $9,624 | $10,872 | 4.7% | -11.5% |
| Total current liabilities | $37,795 | $32,643 | 18.4% | +15.8% |
| Non-current Liabilities: | ||||
| Long-term borrowings | $99,984 | $85,297 | 48.8% | +17.2% |
| Income taxes payable | $10,885 | $10,269 | 5.3% | +6.0% |
| Operating lease liabilities | $16,311 | $11,536 | 8.0% | +41.4% |
| Other non-current liabilities | $9,552 | $7,647 | 4.7% | +24.9% |
| Total non-current liabilities | $136,732 | $114,749 | 66.7% | +19.2% |
| Total Equity | $30,457 | $20,969 | 14.9% | +45.2% |
| Total Liabilities and Equity | $204,984 | $168,361 | 100.0% | +21.8% |
Balance Sheet Key Analysis
- Significant Expansion of PP&E: Property, plant and equipment grew by 56% (an increase of approximately $24.3 billion) compared to May 2025. This highlights Oracle’s aggressive scaling of data center capacity to meet cloud demand.
- Increased Cash Reserves: Cash and cash equivalents rose by $8.5 billion, fueled by an $18 billion debt issuance in September 2025 and the $4.3 billion cash inflow from the Ampere Computing divestiture.
- Leverage Structure: Long-term borrowings increased to nearly $100 billion, representing 48.8% of total assets. These funds primarily support massive capital expenditures and shareholder returns.
- Stability in Goodwill: Goodwill remained flat at $62.2 billion (30.3% of total assets), indicating a lack of major M&A activity during this period.
- Improved Equity Position: The accumulated deficit decreased from $15.5 billion to $9.35 billion, driven by strong quarterly net income and the one-time gain from the Ampere sale.
Oracle Corporation completed the sale of its equity interest in Ampere Computing Holdings LLC (Ampere) during the second quarter of fiscal year 2026, marking a significant investment divestiture. Below is a detailed summary of the transaction based on the provided information:
1. Transaction Background and Buyer
Ampere was previously an equity method investee of Oracle. On March 19, 2025, SoftBank Group Corp. entered into an agreement with Ampere and its equity holders to acquire all outstanding equity interests in Ampere (the Ampere Acquisition).
2. Completion Date and Scope
The acquisition was officially completed on November 25, 2025. Oracle disposed of its entire holding in Ampere, including equity interests, debt instruments, and call option rights. As of November 30, 2025, Oracle no longer holds any investment in Ampere.
3. Financial Impact
This transaction had a substantial impact on Oracle’s financial statements for the quarter:
- Cash Proceeds: Oracle received $4.3 billion in cash proceeds from the sale.
- Realized Gain: The company recorded a realized gain of $2.7 billion within “Non-operating income, net” for the second quarter of fiscal 2026.
- Cash Flow and Working Capital: The $4.3 billion inflow was classified under cash flows from investing activities, contributing significantly to the increase in working capital for the period.
- Non-operating Income Growth: Primarily due to this $2.7 billion gain, Oracle’s non-operating income surged to $2.668 billion this quarter, compared to only $36 million in the same period last year.
This transaction provided Oracle with substantial cash reserves to support its data center expansion plans, debt repayments, dividend payments, or potential share repurchases.
Based on the source documents, Oracle Corporation has experienced an extraordinary surge in its Remaining Performance Obligations (RPO). This metric serves as a key indicator of future revenue stability and the scale of long-term customer commitments.
1. Massive Growth in RPO
As of November 30, 2025, Oracle’s total RPO reached $523.3 billion. To put this in perspective, the RPO for the same period in 2024 was $97.3 billion. This represents a staggering year-over-year increase of over 400%.
2. Primary Drivers of the Increase
The sources explicitly state that this massive jump is due to the signing of several major long-term cloud contracts during the period. This reflects robust market demand for Oracle Cloud Services, particularly in the infrastructure sector.
3. Revenue Recognition Timeline
RPO represents contracted amounts that have not yet been recognized as revenue. Oracle expects to convert the $523.3 billion into revenue according to the following estimated schedule:
| Timeline | Expected Revenue Recognition % |
| Within the next 12 months | ~10% |
| Months 13 to 36 | 30% |
| Months 37 to 60 | 35% |
| Beyond 60 months | Remaining portion |
4. Business Context and Strategic Correlation
The surge in RPO aligns with Oracle’s broader cloud transformation strategy:
- Strong OCI Growth: Cloud infrastructure revenue grew by 68% year-over-year this quarter.
- Expansion of Capital Expenditures: To support these massive contracts, Oracle significantly increased Capex to $20.5 billion in the first half of FY2026. This funding is dedicated to expanding data center capacity and establishing new global locations.
- Rising Cloud Revenue Mix: Cloud revenue now accounts for 50% of total quarterly revenue, up from 42% in the prior year.
In summary, the rise in RPO signifies that Oracle has successfully locked in large-scale, long-term cloud commitments, providing a solid foundation for revenue stability for years and even decades to come.
Based on the source documents and recent updates as of January 2026, Oracle Corporation is currently navigating several significant legal proceedings. These can be categorized into privacy class actions, a major new bondholder lawsuit, and ongoing tax disputes.
1. Netherlands Privacy Class Action
This is a high-stakes collective action involving data privacy in the European Union.
- Background: In August 2020, the privacy group The Privacy Collective (TPC) filed a lawsuit in the Amsterdam District Court against Oracle and Salesforce.
- Allegations: TPC claims that Oracle’s Data Management Platform (DMP) violated the GDPR and Dutch laws by tracking users via cookies to create “shadow profiles” without proper consent.
- Claim Amount: The suit seeks approximately €500 per Dutch internet user for non-material damages. With roughly 10 million users cited, the potential claim reaches billions of euros.
- Status (January 2026): After several procedural shifts, the Dutch Supreme Court held a hearing in September 2025. The Advocate General is expected to provide a formal legal opinion by January 30, 2026.
- Company Stance: Oracle maintains that the claims are meritless and expects no material impact on its financial position.
2. New Bondholder Class Action (January 2026)
A new legal challenge emerged in early 2026 regarding Oracle’s financing of its AI infrastructure.
- Filing Date: January 14, 2026.
- The Dispute: Bondholders filed a class action in a New York court involving $18 billion in notes issued in September 2025.
- Allegations: Plaintiffs claim Oracle failed to disclose that it would need to issue significant additional debt to fund its massive AI infrastructure build-out, leading to financial losses for investors once the true scale of debt requirements became clear.
- Defendants: The lawsuit names Oracle Corporation, Larry Ellison, and the company’s underwriting banks.
3. Global Tax Disputes
Oracle is involved in significant tax-related challenges across multiple jurisdictions.
- Major Regions: Significant disputes are ongoing in Australia, Brazil, Canada, India, and South Korea, among others.
- Australia Royalty Case: In late 2025, Oracle won a procedural victory in the Full Federal Court of Australia, allowing it to “stay” (pause) domestic court proceedings while it pursues a Mutual Agreement Procedure (MAP) under the Australia-Ireland tax treaty. This dispute centers on whether software distribution payments should be taxed as “royalties.”
- South Korea Case: Analysts have noted uncertainty regarding a 1.4 trillion won (approx. $1 billion USD) tax dispute in South Korea.
- Provisioning: Oracle has established reserves for potential adjustments but believes the final outcomes will not have a material adverse effect on operations.
4. Oracle Health (Cerner) Data Breach Litigation
Following the acquisition of Cerner, Oracle is facing litigation related to data security.
- Issue: Multiple class actions were filed throughout 2025 and into early 2026 following a data breach that allegedly affected up to 80 hospitals.
- Allegations: Plaintiffs claim Oracle Health was negligent in securing sensitive health information (PHI) and social security numbers after the 2022 acquisition.
In summary, while Oracle faces a diverse array of legal pressures—ranging from EU privacy mandates to new debt disclosure challenges—the company’s management continues to assert that these matters will not fundamentally threaten the firm’s financial health.
Based on the source documents for the second quarter of fiscal year 2026 (ended November 30, 2025), Oracle Corporation has initiated a significant restructuring effort.
1. Fiscal 2026 Restructuring Plan
- Objective: Management approved and initiated this plan in the first half of fiscal 2026 to further improve operational efficiencies and respond to recent acquisitions and other operational shifts.
- Strategic Focus: The plan primarily supports Oracle’s transition toward developing, marketing, and delivering cloud-based products. While the plan aims for long-term cost savings, a portion of these savings is being reinvested into cloud infrastructure development and resources.
- Total Estimated Costs: The total estimated restructuring costs for this plan are up to $1.6 billion (specifically projected at $1.614 billion).
2. Financial Impact and Expenses
- Quarterly Charges: For the three months ended November 30, 2025, Oracle recorded $406 million in restructuring expenses, a sharp increase from the $84 million recorded in the same period last year.
- Six-Month Cumulative: Total restructuring expenses for the first half of fiscal 2026 reached $808 million.
- Liability Balance: As of November 30, 2025, restructuring-related liabilities were recorded under “Other current liabilities” ($411 million) and “Other non-current liabilities” ($73 million).
3. Cost Categories and Segment Distribution
Restructuring expenses primarily consist of employee severance costs. The following table details the total expected costs across Oracle’s business segments:
| Segment | Total Expected Costs (Millions) |
| Cloud and Software | $484 |
| Services | $326 |
| Hardware | $67 |
| Other* | $737 |
| Total 2026 Plan | $1,614 |
*Note: “Other” includes severance for employees not tied to specific operating segments and other exit-related costs.
4. Relationship with Previous Plans
- 2024 Restructuring Plan: Expenses recorded in fiscal 2025 were largely associated with the “2024 Restructuring Plan,” which is now substantially complete.
- Acquisition-Related: Oracle continues to fulfill remaining obligations from various smaller plans related to previous acquisitions, though these no longer have a significant recurring impact on the income statement.
In summary, the Fiscal 2026 Restructuring Plan reflects Oracle’s aggressive move to optimize its organization during a peak period of cloud transformation, investing heavily to streamline its workforce and integrate resources from its recent expansion.