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Feb 28
Oracle Q3 2026 Earnings Report
Oracle announced its fiscal year 2026 third quarter financial results, showing significant growth in cloud revenue and record remaining performance obligations.
Key Takeaways
Oracle delivered an exceptional Q3 with total revenue increasing 22% to $17.2 billion, driven by a 44% surge in Cloud revenue. The company saw a massive 325% year-over-year increase in Remaining Performance Obligations to $553 billion, largely due to large-scale AI contracts. GAAP EPS grew 24% to $1.27, while non-GAAP EPS rose 21% to $1.79.
Remaining Performance Obligations (RPO) reached a record $553 billion, up 325% year-over-year.
Cloud Infrastructure (IaaS) revenue grew 84% in USD to $4.9 billion.
Total Cloud revenue (IaaS plus SaaS) reached $8.9 billion, representing 52% of total revenues.
Oracle raised $30 billion in Q3 through investment-grade bonds and mandatory convertible preferred stock to fund expansion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Oracle expects strong growth to continue in Q4 FY26 and has raised its FY27 revenue outlook.
Positive Outlook
- Q4 Total revenues expected to grow 19% to 21% in USD.
- Q4 Total Cloud revenue expected to grow 46% to 50% in USD.
- Non-GAAP EPS expected to be between $1.96 and $2.00 for Q4.
- FY27 total revenue guidance raised to $90 billion.
- AI demand continues to outpace supply, supporting long-term growth.
Challenges Ahead
- Capital expenditures for FY26 are expected to be high at $50 billion.
- Currency fluctuations expected to impact constant currency growth rates.
- Demand for cloud computing currently exceeds available supply.
- Significant debt and equity financing recently initiated ($30 billion raised out of $50 billion intent).
Historical Earnings Impact
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Avg. Return Before/After Earnings
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