""The enterprise software provider said it experienced significant growth in both cloud infrastructure and applications. Its second quarter cloud revenue, which includes infrastructure as a service and software as a service, was $8bn, up 34%. Overall, cloud revenue now accounts for 50% of the company's overall revenue.""
""He discussed three ways Oracle finances its datacentre growth. The first is a traditional hosting model, where Oracle customers bring their own hardware into Oracle datacentres. In other cases, McGuirk said customers may rent capacity once it is provisioned. Then there is the model where Oracle pays upfront for the hardware. "That's obviously the most cash intensive upfront," he said. "Then there's a depreciation schedule over the next several years."""
""When asked about margins for artificial intelligence (AI) workloads for Oracle Cloud Infrastructure (OCI), which are expected to increase by between 30-40% over the life of a customer contract, McGuirk said Oracle's focus has been to accelerate capacity delivery to improve margins and achieve its target profitability for AI workloads. "As we go through this build-out phase, right now we're in a phase of very rapid build-out without the majority of the capacity online," he said. "As we actually get the majority of this capacity online - and that's really our focus - the best way to improve margins quickly is to ac""
Revenue for Q2 FY26 totaled $16.1bn, a 13% year-over-year increase and the third consecutive quarter of double-digit growth. Cloud revenue, including IaaS and SaaS, reached $8bn, rising 34% and constituting 50% of overall revenue. Three datacentre financing models are used: customer-supplied hardware in Oracle datacentres, rental of provisioned capacity, and Oracle paying upfront for hardware with subsequent depreciation. AI workload margins on OCI are projected to increase 30–40% over the life of customer contracts. Rapid capacity build-out is underway, with margin improvement expected as the majority of capacity becomes online.
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