Oracle Q3 FY2026 Earnings: Revenue Hits $17.2 Billion (Key Highlights and Analysis)
Quick Verdict: Oracle delivered a strong Q3 FY2026 with total revenue of $17.2 billion (up 22% YoY) and non-GAAP EPS of $1.79, beating Wall Street’s consensus estimate of $1.70 EPS on $16.9 billion in revenue. Cloud revenue surged 44% to $8.9 billion, and Remaining Performance Obligations reached $553 billion. Shares jumped roughly 8.7% in after-hours trading on March 10, 2026, closing the extended session at $162.40.
About Oracle Corporation
Oracle Corporation (NYSE: ORCL) is an American multinational technology company headquartered in Austin, Texas. Founded in 1977 by Larry Ellison, Bob Miner, and Ed Oates as Software Development Laboratories, the company rebranded to Oracle in 1982 after its flagship relational database product. Oracle went public in 1986 and transferred its stock listing from NASDAQ to the New York Stock Exchange in 2013.
Oracle offers integrated suites of cloud applications, platform services, and engineered systems. Its products serve industries including finance, healthcare, government, and telecommunications. The company relocated its global headquarters from Redwood Shores, California, to Austin, Texas, in 2020.
As of its most recent reporting, Oracle employs approximately 159,000 people worldwide. The stock trades at a price-to-earnings (P/E) ratio of approximately 27.9 (TTM) as of March 2026, down from a peak of 59.7 in November 2025. The current market capitalization stands at roughly $429.5 billion, with an annual dividend of $2.00 per share and a yield of approximately 1.3% to 1.4%.
Top Financial Highlights
- Total revenue reached $17.2 billion, representing a 22% increase in USD and 18% growth in constant currency compared with the previous year.
- Cloud revenue from infrastructure and applications totaled $8.9 billion, reflecting strong expansion of 44% in USD and 41% in constant currency.
- Cloud infrastructure revenue recorded $4.9 billion, showing rapid growth of 84% in USD and 81% in constant currency.
- Cloud application revenue stood at $4.0 billion, increasing 13% in USD and 11% in constant currency.
- GAAP net income rose to $3.72 billion, reflecting a 27% year over year increase from $2.94 billion.
- GAAP earnings per share reached $1.27, marking 24% growth year over year, while non GAAP EPS reached $1.79, reflecting 21% growth.
- GAAP operating income totaled $5.5 billion, while non GAAP operating income reached $7.4 billion, representing 19% growth in USD.
- Non GAAP operating margin reached 43%, compared with a 32% GAAP operating margin.
- Operating cash flow for the trailing twelve months reached $23.5 billion, representing 13% growth.
- Remaining performance obligations increased to $553 billion, reflecting a sharp 325% year over year increase and an additional $29 billion growth from the previous quarter.
- Multi-cloud database revenue recorded an exceptional 531% year over year increase.
- Fusion Cloud ERP revenue reached $1.1 billion, reflecting 17% growth in USD.
- NetSuite Cloud ERP revenue also reached $1.1 billion, increasing 14% in USD.
- Cash and cash equivalents totaled $38.5 billion as of February 28, 2026.
- Guidance for the fourth quarter of FY2026 indicates total revenue growth between 19% and 21% in USD, while cloud revenue is expected to increase between 46% and 50% in USD.
- Non GAAP earnings per share for the quarter are projected to range between $1.96 and $2.00.
- Full year FY2026 revenue guidance remains $67 billion, while FY2027 revenue guidance has been raised to $90 billion.
Beat or Miss?
Oracle’s Q3 FY2026 results exceeded analyst expectations across all key metrics. The consensus Wall Street estimate called for non-GAAP EPS of $1.70 on revenue of $16.9 billion.
| Metric | Reported | Analyst Estimate | Difference |
| Total Revenue | $17.2 billion | $16.9 billion | Beat by $300 million (+1.8%) |
| Non-GAAP EPS | $1.79 | $1.70 | Beat by $0.09 (+5.3%) |
| GAAP EPS | $1.27 | $1.55 (some estimates) | Beat by $0.24 (+15.5%) on select estimates |
| Cloud Revenue | $8.9 billion | ~$8.9 billion (high end of guidance) | At high end of company guidance |
| RPO | $553 billion | ~$540 billion | Beat by $13 billion (+2.4%) |
What Leadership Is Saying?
Oracle’s Q3 FY2026 earnings call featured remarks from co-CEOs Clay Magouyrk and Mike Sicilia, Principal Financial Officer Doug Caring, and Chairman/CTO Larry Ellison. Note: Safra Catz, previously the sole CEO, was not listed as a call participant this quarter.
“We had a tremendous quarter that exceeded expectations across the board. Our momentum continues to accelerate with Q3 being the first quarter in over 15 years where both organic total revenue and organic non-GAAP EPS grew at 20% or better in USD.” – Doug Caring, Principal Financial Officer
“Oracle Corporation has the fastest growing, most complete suite of cloud applications in the market, full stop. Our SaaS solutions are industry-complete platforms – highly scalable, trusted, secure, and regulatory-compliant systems and processes in which our customers trust us to run the systems that run their businesses.” – Mike Sicilia, Co-CEO
“Multicloud database revenue grew 531% year over year. AI infrastructure revenue grew 243% year over year. Both also have demand that exceeds supply and a clear execution plan from Oracle Corporation that will rapidly turn that demand into profitable recurring revenue.”– Clay Magouyrk, Co-CEO
“We think AI is disruptive – we do. But we think we’re the disruptor because we’re actually embedding the AI right into our applications full stop.”– Mike Sicilia, Co-CEO
Historical Performance
Q3 FY2026 vs. Q3 FY2025
| Category | Q3 FY2026 | Q3 FY2025 | Change (%) |
| Total Revenue | $17.19 billion | $14.13 billion | 22% |
| Cloud Revenue | $8.91 billion | $6.21 billion | 44% |
| Cloud Infrastructure (IaaS) | $4.89 billion | $2.65 billion | 84% |
| Cloud Applications (SaaS) | $4.03 billion | $3.56 billion | 13% |
| GAAP Net Income | $3.72 billion | $2.94 billion | 27% |
| GAAP EPS | $1.27 | $1.02 | 24% |
| Non-GAAP EPS | $1.79 | $1.47 | 21% |
| Total Operating Expenses | $11.73 billion | $9.77 billion | 20% |
| GAAP Operating Income | $5.46 billion | $4.36 billion | 25% |
| Operating Cash Flow (TTM) | $23.5 billion | $20.7 billion | 13% |
| RPO | $553 billion | $130 billion | 325% |
Revenue acceleration was evident: Q3 FY2026’s 22% total revenue growth rate compares with 6% in Q3 FY2025 and 14% in Q2 FY2026, reflecting a strong upward trajectory throughout the fiscal year.
Competitor Landscape
Oracle competes in cloud infrastructure and enterprise software against major players including Amazon Web Services (AWS), Microsoft Azure, and SAP. Below is a comparison of recent quarterly results from these companies.
| Metric | Oracle Q3 FY2026 (Feb 2026) | AWS Q4 CY2025 (Dec 2025) | Microsoft Intelligent Cloud Q2 FY2026 (Dec 2025) | SAP Q4 CY2025 (Dec 2025) |
| Quarterly Revenue | $17.2 billion | $35.6 billion | $32.9 billion | EUR 9.68 billion (~$10.6B) |
| Revenue Growth (YoY) | +22% | 24% | 29% | +3% (IFRS), +9% constant currency |
| Cloud Revenue Growth | +44% (IaaS+SaaS) | +24% (total AWS) | +39% (Azure & cloud) | +19% (IFRS), +26% constant currency |
| Operating Income | $5.5 billion (GAAP) | $12.5 billion | $38.3 billion (total MSFT) | EUR 2.55 billion (IFRS) |
| Operating Margin | 32% (GAAP), 43% (non-GAAP) | 35% | 47% (total MSFT) | 26.4% (IFRS), 29.2% (non-IFRS) |
Oracle’s cloud infrastructure segment (IaaS) grew 84% in the quarter, far outpacing AWS’s 24% and representing one of the fastest growth rates among hyperscalers. However, Oracle’s total cloud revenue base remains smaller than AWS and Azure in absolute terms. SAP, Oracle’s primary rival in enterprise applications, grew its cloud revenue 26% in constant currency for full-year 2025, while Oracle’s cloud applications segment grew 13%.
How the Market Reacted?
Oracle shares closed the regular trading session on March 10, 2026, at $149.40, down 1.4% for the day ahead of the after-hours earnings release. Following the report, the stock surged approximately 8.7% in after-hours trading to $162.40, reflecting investor enthusiasm around the earnings beat and the raised FY2027 revenue guidance of $90 billion. On March 11, 2026, the stock traded in a range of $148.45 to $164.50 during the regular session, closing at $164.50, a gain of roughly 10.8% from the prior close.
Analysts responded favorably. Jefferies analyst Brent Thill maintained a Buy rating with a $320 price target, calling the results a “clean beat across the board.” The consensus Wall Street rating on Oracle stands at Strong Buy, with 24 Buy ratings, 5 Hold ratings, and zero Sell ratings. The mean analyst price target is approximately $260.
The earnings report also highlighted Oracle’s acquisition of a 15% equity stake in the newly independent TikTok US, whose financial results will be recognized beginning in Q4 FY2026 via the equity method. Additionally, Oracle announced a quarterly cash dividend of $0.50 per share, payable on April 24, 2026.
