Oracle Corporation Japan

Q4 revenue was $19.2 billion, up 21% in US dollars. Non-GAAP operating income rose 22% to $8.6 billion, and non-GAAP EPS was $2.11, up 24% in US dollars; excluding a one-time net gain on investment, EPS was up 20%. Cloud infrastructure revenue grew 93%, cloud apps revenue was up 10%, and cloud database revenue grew 29%. For the full fiscal year, revenue surpassed $67 billion, non-GAAP operating income was $29 billion, up 16%, and non-GAAP EPS was $7.63, or $6.83 excluding one-time gains. Operating cash flow was $32 billion, up 54%, and net cash outlay for capital expenditures was $48 billion for the year, including about $8 billion of prepayments and timing impacts. RPO finished at $638 billion, up 363%. For fiscal 2027, Oracle guided total revenue growth of 34% in constant currency and non-GAAP EPS of $8.05, up 18% in constant currency excluding one-time investment gains. Q1 FY2027 guidance is for total revenue growth of 27% to 29% in US dollars, cloud revenue growth of 58% to 64%, and non-GAAP EPS of $1.72 to $1.76.

Mike Sicilia framed Oracle as being at the center of enterprise AI adoption because it can provide applications, data, infrastructure, AI tooling, and industry expertise together. He emphasized that customers have moved past experimentation and are now looking for enterprise-grade agentic solutions, and he pointed to more than 1,000 AI agents delivered across Oracle application suites over the past year. He also highlighted new pricing models such as outcome-based pricing and token bundles, saying they are designed to align customer value and support growth.

Hilary Maxson described Q4 as a record quarter and linked the results to strength in cloud infrastructure and cloud apps. She said operating margin improved slightly even though gross margin declined due to data-center ramp and faster infrastructure revenue, with operating-cost reductions helping offset that pressure. For the full year, she cited $32 billion of operating cash flow, $48 billion of net CapEx outlay, and RPO of $638 billion, then guided FY2027 net cash outlay for CapEx to around $70 billion, expected debt and equity raises of around $40 billion, and Q1/FY2027 growth and EPS targets.

Analysts focused on CapEx, component-cost inflation, and how Oracle structures long-term AI infrastructure contracts. Clay Magouyrk said most higher CapEx in the quarter was timing-related rather than driven by component prices, and explained that Oracle uses fixed-price contracts only when costs are known and floating mechanisms when costs are uncertain, to protect margins. Questions also covered the new outcome-based and token-based pricing models, with Mike Sicilia saying they expand across the applications fleet and are intended to reduce friction by tying pricing to measurable customer outcomes. A separate line of questioning asked about competition in AI data centers and Oracle’s legacy database/app businesses; management said demand still exceeds supply, renewals are snapping up quickly, and cloud database plus multi-cloud remain early but strong growth engines.