Oracle Corp Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brad Zelnick - Deutsche Bank AG - Analyst : Congratulations in a particular shout out to Mahesh and the team for standing up a massive amount of capacity in this quarter. My question is for Clay or maybe Doug. Oracle is clearly the destination of choice for the most sophisticated AI customers, but this is a far more capital-intensive proposition unlike any business Oracle has ever been in before. Very specifically, how much money does Oracle need to raise to fund its AI growth plans ahead?

Question: Tyler Radke - Citi Infrastructure Investments LLC - Analyst : And this question is for Larry or Clay. So Oracle has clearly established itself as a leading provider for AI infrastructure to AI labs and in some cases, enterprise clients. How are you thinking about the opportunity to sell additional platform services such as database, middleware, other pieces of the portfolio similar to how we saw cloud providers add that on at the early days of the public cloud space? And what might be some of the similarities or differences that you see with the emerging AI platform as a service market versus the traditional cloud platform as a service market?

Question: Brent Thill - Jefferies LLC - Analyst : Question for Larry and Clay, on the fungibility of your infrastructure. What would you have to do the converted data center from one customer or another, such as if one of the larger customers was unable to pay?

Question: Mark Moerdler - Sanford C Bernstein & Co LLC - Analyst : Congrats on the quarter. Doug, you gave some color earlier tonight that I'd like to dig in on. Clay presented a slide at the Financial Analyst Meeting, where he showed the revenue and expenses for a single data center. Doug and Clay, can you talk about the cash flow for that same data center, starting with the commitment for the data center and then the hardware and how that flows into becoming cash flow positive? And then how that rolls up across multiple data centers? Any color would be really appreciated. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 10:00PM, ORCL.N - Q2 2026 Oracle Corp Earnings Call

Question: John DiFucci - Guggenheim Securities LLC - Analyst : Okay. I won't make you kiss my ring. It's actually John DiFucci. Anyway -- I'm sorry, listen, a lot of my questions on infrastructure. We've already been asked, and they're really important questions because that's a big part -- that's your big part of your growth. I have a question on the Applications business. Mike, you said applications are going to accelerate this year? Why the confidence in this business when all your large SaaS peers are seeing just the opposite where growth is decelerating, especially because we thought that something similar about Oracle's application business last year, we didn't really start to see it until the fourth quarter. We've heard some things in the field around One Oracle, your go-to-market motion where apps and infrastructure are more combined versus separate. And you also talked about combining vertical and horizontal labs teams here. Is that it? Is it mostly go-to-market? Is there something more about the products or something else that we should be thinking about?

Question: John DiFucci - Guggenheim Securities LLC - Analyst : As you were talking, you sort of clarified in my mind, when I think of an Oracle, I used to think -- I thought of it when I started to hear about it as a go-to-market motion, but it's more than that. It's actually -- it's a product thing, too. It's everything.