For ORCL-PD preferred holders, the issuer's record revenue and cash flow provide strong coverage for the $1,625-per-share preferred dividend. The massive capex spend ($55.7B) and planned $40B additional FY2027 financing are manageable given $75B in customer prepayments, but leverage (total debt ~$130B) will remain elevated. Monitor the pace of debt paydown and any credit rating actions. The preferred is a hold with modest upside as the credit story improves with cash flow growth.
Price Chart
Executive Summary
Oracle reported record Q4 and FY2026 results, with Q4 revenue of $19.2B (+21% YoY) and GAAP EPS of $1.45 (+21% YoY). Cloud revenue drove the beat, with IaaS surging 93% to $5.8B and RPO reaching $638B (+363% YoY). FY2027 revenue guidance was confirmed at $90B and non-GAAP EPS guidance was raised to $8.05 (18% growth). As a preferred shareholder in ORCL-PD, the credit story is strongly positive—record cash flow, debt paydown capacity, and massive customer prepayments ($75B) de-risk the capital program. However, the massive capex program ($55.7B in FY2026) and negative FCF (-$23.7B) inject credit risk for the preferred, tempering the otherwise bullish narrative.
Key Financial Metrics
Key Facts
- Q4 FY2026 revenue $19.2B, up 21% YoY, above $19.09B consensus
- Q4 GAAP diluted EPS $1.45, up 21% YoY
- Q4 Cloud IaaS revenue $5.8B, up 93% YoY
- RPO $638B, up 363% YoY, up $85B sequentially
- FY2026 total revenue $67.4B, up 17% YoY; operating cash flow $32.0B, up 54%
- FY2027 revenue guidance confirmed at $90B; non-GAAP EPS guidance raised to $8.05
- Customer prepayments and customer-supplied hardware for AI contracts now total $75B
- FY2026 free cash flow was -$23.7B, reflecting heavy capex of $55.7B
- Preferred stock dividend declared at $1,625 per share (per 8-K Item 8.01)
- Issuer expects to raise ~$40B in FY2027 via debt and equity including $20B ATM equity program
Financial Impact
Record quarterly and annual revenue, with cloud now 51% of total revenue. RPO growth to $638B signals multi-year revenue visibility. Capex intensity is a credit concern but is partially offset by $75B in customer prepayments/supplied hardware.
Risk Factors
- Free cash flow was negative -$23.7B in FY2026 due to heavy capex; may pressure credit metrics
- Total notes payable and borrowings rose to ~$129.5B from ~$92.6B YoY, increasing leverage
- Issuer plans to raise ~$40B more in FY2027 including $20B ATM equity, diluting common but structurally subordinated to preferred
- Software segment revenue declined 2% QoQ and 1% YoY, reflecting ongoing on-premise to cloud migration headwinds
- Guidance assumes continued high AI cloud demand; any slowdown could pressure the capex ROI
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-265848 |
| Document: orcl-20260610.htm | 0001193125-26-265848 |
| Document: 0001193125-26-265848-index-headers.html | 0001193125-26-265848 |
| Document: 0001193125-26-265848-index.html | 0001193125-26-265848 |
| Document: 0001193125-26-265848.txt | 0001193125-26-265848 |
| 8-K Data (Synthetic) | 0001193125-26-265848 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 18d ago | 8-K | $144.79 $148.56 | ▲ +2.60% | ▲ +2.50% | $142.19 (−1.80%) |
Aug 25, 2026 5w ago | GOVT-CONTRACT | $144.76 $141.32 | ▼ −2.38% | ▼ −1.84% | $142.19 (−1.78%) |
Jul 20, 2026 10w ago | ANALYST-UPGRADE | $121.38 $114.99 | ▲ +5.26% | ▲ +4.84% | $142.19 (−17.14%) |
Jun 24, 2026 14w ago | 144 | $152.46 $142.50 | ▼ −6.53% | ▼ −8.09% | $142.19 (−6.74%) |
Jun 10, 2026 16w ago | 8-K | $54.86 $54.20 | ▼ −1.20% | ▼ −2.42% | $142.19 (+159.19%) |
May 12, 2026 20w ago | 8-K | $56.38 $54.07 | ▼ −4.10% | ▼ −2.94% | $142.19 (+152.20%) |
Apr 24, 2026 22w ago | ANALYST-UPGRADE | $173.27 $161.39 | ▼ −6.85% | ▼ −7.76% | $142.19 (−17.94%) |
Apr 21, 2026 23w ago | Court Ruling | $181.17 $165.96 | ▼ −8.40% | ▼ −9.48% | $142.19 (−21.52%) |
Apr 6, 2026 25w ago | 8-K | $45.02 $47.84 | ▲ +6.26% | ▲ +2.13% | $142.19 (+215.84%) |
Mar 30, 2026 26w ago | Court Ruling | $138.79 $142.81 | ▲ +2.90% | ▼ −1.40% | $142.19 (+2.45%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access