Oracle reported Q1 FY2026 results with a USD 14.926 billion top line, up 4.47% year-over-year and 5.63% quarter-over-quarter, driven by continued demand for Oracle cloud services and software licenses. GAAP gross profit expanded to USD 14.506 billion, yielding an implied gross margin of roughly 97.2% based on the reported data, while operating income reached USD 4.278 billion and net income USD 2.927 billion, translating to an EPS of USD 1.04 (USD 1.01 diluted). Management commentary underscored progress in cloud adoption and integration across Oracle Cloud Infrastructure, NetSuite, and Fusion applications, with emphasis on AI-enabled automation and cost discipline. However, free cash flow remained negative at USD 0.362 billion as capital expenditure surged to USD 8.502 billion, reflecting aggressive cloud-building investments and data-center expansion. Operating cash flow stood at USD 8.14 billion, with total investing cash outflows of USD 8.718 billion and financing activity contributing USD 0.21 billion, leaving cash at period-end of USD 10.445 billion. Net debt approached USD 94.964 billion on the back of elevated long-term leverage. The results reinforce a dual trajectory: durable software and cloud software margins and a robust services ecosystem, paired with a deliberate ramp of cloud infrastructure investments that pressure near-term free cash flow but potentially enhance long-run operating leverage and competitive position.