Oracle delivered an exceptional third quarter for fiscal year 2026, exceeding expectations with strong growth across total and cloud revenues, driven by significant demand for AI cloud services and the positive impact of AI on software development efficiency. The company also successfully raised substantial debt and equity financing, positioning it well for future growth.
Total revenues grew 22% year-over-year to $17.2 billion, exceeding guidance.
positiveCloud revenues surged 44% year-over-year to $8.9 billion, with Cloud Infrastructure (IaaS) up 84% and Oracle Cloud Database revenue up 35%.
positiveRemaining Performance Obligations (RPO) reached $553 billion, a 325% increase year-over-year, largely driven by large-scale AI contracts.
positiveNon-GAAP earnings per share grew 21% year-over-year to $1.79, exceeding guidance.
positiveCompany raised $30 billion in debt and equity financing with a record order book, indicating strong investor confidence.
positiveAI code generation technology is enabling faster, more cost-effective SaaS application development.
positiveSoftware revenues grew only 3% in USD and declined 1% in constant currency, indicating a slowdown in this segment.
attentionHardware revenues grew only 2% in USD and declined 2% in constant currency.
attentionAmortization of intangible assets decreased by 25% year-over-year, impacting the non-GAAP adjustment.
attentionRestructuring expenses increased significantly by 142% year-over-year, indicating ongoing organizational changes.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Cloud | N/A | — | — | — | +41.0% |
Software | N/A | — | — | — | -1.0% |
Hardware | N/A | — | — | — | -2.0% |
Services | N/A | — | — | — | +8.0% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Q3 fiscal 2026 was an exceptional quarter with financial results that exceeded expectations.
This Q3 was the first quarter in over 15 years where organic total revenue and non-GAAP earnings per share both grew at 20% or more in USD.
The demand for cloud computing for AI training and inferencing continues to grow faster than supply.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.