Oracle Stock Drops On Mixed Q2 Earnings: RPO Growth Of 438%, Company Stresses Cloud, Chip 'Neutrality'
Oracle Corp (NYSE:ORCL) posted second-quarter financial results for fiscal 2026 after the market close on Wednesday. Here’s a look at the key details from the print.
- Oracle stock is trading in a tight range. What should traders watch with ORCL?
Q2 Highlights: Oracle reported second-quarter revenue of $16.06 billion, missing analyst estimates of $16.21 billion. The software giant said adjusted earnings grew 54% year-over-year to $2.26 per share, beating analyst estimates of $1.64 per share, according to Benzinga Pro.
Total revenue was up 14% on a year-over-year basis as cloud revenue climbed 24% and software revenue fell 3%. Here's a breakdown of revenue by segment:
- Cloud: $8 billion, up 34%
- Cloud Infrastructure: $4.1 billion, up 68%
- Cloud Application: $3.9 billion, up 11%
- Fusion Cloud ERP: $1.1 billion, up 18%
- NetSuite Cloud ERP: $1 billion, up 13%
Remaining performance obligations totaled $523 billion at the end of the second quarter, up 438% year-over-year. Oracle exited the period with approximately $19.24 billion in cash and cash equivalents.
“We are committed to Cloud Neutrality because we believe that our customers should be able to run their Oracle databases in any cloud they choose. That strategy is definitely paying off. Our Multicloud database business is our fastest-growing business — up 817% in Q2,” said Mike Sicilia, CEO of Oracle.
Oracle's board declared a quarterly cash dividend of 50 cents per share, payable on Jan. 23, 2026, to shareholders of record as of Jan. 9, 2026.
Oracle Chairman and CTO Larry Ellison noted Oracle sold Ampere because the company no longer believes it’s strategic to design and manufacture its own chips.
“We are now committed to a policy of chip neutrality where we work closely with all our CPU and GPU suppliers. Of course, we will continue to buy the latest GPUs from Nvidia, but we need to be prepared and able to deploy whatever chips our customers want to buy,” Ellison said.
Oracle has a history of discussing its forward outlook on its earnings call, which is scheduled for 5 p.m. ET. A link to the call has been provided below.
ORCL Price Action: Oracle shares were down 6.53% in after-hours, trading at $208.44 at the time of publication on Wednesday, according to Benzinga Pro.
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