| | | ORCL: RPO +433% YoY. Not stunning enough?
"Third-quarter guidance -- Total cloud revenue projected to grow 37%-41%". Not stunning enough?
Date Wednesday, Dec. 10, 2025 at 5 p.m. ET
Call participants- Chairman and Chief Technology Officer — Lawrence Ellison
- Chief Executive Officer — Mike Cecilia
- Chief Executive Officer — Clay McGork
- Principal Financial Officer — Doug Caring
- Senior Vice President, Investor Relations — Ken Bond
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Takeaways- Remaining Performance Obligations (RPO) -- $523.3 billion at quarter end, up 433% year over year, and up $68 billion since August, driven by new contracts including Meta and NVIDIA.
- Short-term RPO growth -- RPO expected to be recognized within twelve months grew 40%, rising from 25% in the previous quarter.
- Total cloud revenue -- $8 billion for the quarter, representing 33% growth and now accounting for half of Oracle's total revenue.
- Cloud infrastructure revenue -- $4.1 billion, up 66%, with GPU-related cloud revenue increasing 177%.
- Cloud database services -- Segment revenue up 30%; Autonomous Database up 43%; multi-cloud database consumption up 817%.
- Cloud applications revenue -- $3.9 billion, up 11% overall; strategic back-office applications contributing $2.4 billion, up 16%.
- Total revenue -- $16.1 billion, up 13%; prior-year growth was 9% in the same quarter.
- Operating income -- $6.7 billion, increasing 8%.
- Non-GAAP EPS -- $2.26, up 51% in Q2; GAAP EPS $2.10, up 86% in Q2.
- Pretax gain from Ampere sale -- Recognized $2.7 billion in the quarter from this transaction.
- Operating cash flow -- $2.1 billion in Q2.
- Free cash flow -- Negative $10 billion; CapEx reached $12 billion, reflecting investment in revenue-generating equipment for data centers.
- 2027 revenue forecast update -- $4 billion additional revenue expected for fiscal 2027 (ending May 31, 2027) based on accelerated RPO conversion; fiscal 2026 (ending May 31, 2026) total revenue guidance remains at $67 billion.
- Third-quarter guidance -- Total cloud revenue projected to grow 37%-41% in constant currency (40%-44% in USD); total revenue expected to rise 16%-18% in constant currency (19%-21% in USD); non-GAAP EPS anticipated to grow 12%-14% (16%-18% in USD).
- Cloud infrastructure capacity -- 147 live customer-facing regions, 64 additional regions planned; delivered almost 400 megawatts capacity in quarter, and 50% more GPU capacity than the prior quarter.
- Marketplace and partner ecosystem -- Marketplace consumption grew 89%, led by partnerships with Broadcom and Palo Alto.
- Dedicated region and Alloy consumption -- Grew 69% year over year; 39 live dedicated regions, 25 more scheduled.
- OCI notable customer scale -- Uber exceeded 3 million cores usage on OCI; TMove approached 1 million cores during peak events.
- Cloud application go-lives -- 330 customers went live on cloud applications during the quarter, including Virgin Atlantic Airways and Saudi Telecom.
- Cloud application deferred revenue -- Increased 14%, outpacing cloud applications revenue growth.
Oracle ORCL Q2 2026 Earnings Call Transcript | The Motley Fool |
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