Oracle's new co-CEOs on applications acceleration and CapEx demands that might not be as high as rumors suggest

There was a lot riding on Oracle’s Q2 FY26 earnings report following growing concern about an AI bubble burst and the firm’s supposed over-dependence on spending commitments from OpenAI. If Oracle was indeed that ‘canary down the coal mine’ that such scuttlebutt presumed, then the bird remains firmly upright on its perch for now after another strong quarter.

That said the firm saw its share price slide on the back of the results announcement after it missed its revenue estimates which analysts had pitched at $16.2 billion. In the event, total revenues came in at $16.1 billion, up 13% year-on-year in constant currency, with net income up 89% at $6.1 billion, boosted by a $2.7 billion pre-tax gain from the sale of semi-conductor company Ampere to SoftBank.

Breaking down revenues, Cloud - IaaS + SaaS - was $8.0 billion, up 33%, of which IaaS made up ...