Oracle Q3 2026 Earnings: Cloud and AI Infrastructure Demand Drive Sharp Growth
Oracle's fiscal Q3 2026 revenue rose 22% to $17.2 billion, powered by a 44% jump in cloud revenue and a record backlog of AI infrastructure contracts.
| Q3 2026 | Reported |
|---|---|
| EPS | $1.27 |
| Revenue | $17.19B |
Figures as reported by the company to the SEC for the quarter ended February 28, 2026. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Total revenue grew 22% from a year earlier (18% after stripping out currency effects) — one of Oracle’s fastest growth rates in more than a decade, driven almost entirely by cloud demand rather than its older software business.
- Cloud revenue (infrastructure plus applications) rose 44% year-over-year to $8.9 billion. Within that, cloud infrastructure — the computing power companies rent to run AI workloads — jumped 84%, while cloud applications (subscription business software) grew a steadier 13%.
- Traditional on-premise software licensing, Oracle’s legacy business, was essentially flat (up 3% in dollar terms, down 1% excluding currency swings), underscoring that growth is now concentrated almost entirely in cloud and AI infrastructure.
- Remaining performance obligations — contracted future revenue not yet booked as sales — jumped 325% year-over-year to $553 billion, mostly from large, multi-year AI infrastructure deals. Oracle said it does not expect to need extra outside funding for this buildout, since much of the equipment is either prepaid by customers or supplied by them directly.
- Trailing-twelve-month profitability metrics show earnings growing faster than sales: EPS was up nearly 35% over the past year versus revenue growth of about 17%, gross margin stayed healthy near 66%, and return on equity topped 50% — signs that, despite heavy AI infrastructure spending, profit is scaling ahead of revenue rather than being squeezed by it.
- For the following quarter, Oracle guided to total revenue growth of 18% to 20% in constant currency, indicating management expects the current cloud-driven growth pace to largely continue.
- Executives framed the quarter as validation of years of infrastructure investment, pointing to broad-based demand across cloud applications and AI infrastructure as the main driver of the results.
Q3 2026 in context
| Metric | Feb 2026 | Feb 2025 | Change |
|---|---|---|---|
| Revenue | $17.2B | $14.1B | +21.7% |
| Net income | $3.7B | $2.9B | +26.7% |
| Free cash flow | -$11.5B | $71M | -16274.6% |
| Diluted EPS | $1.27 | $1.02 | +24.5% |
| Operating margin | 31.8% | 30.8% | +0.9 pts |
| Net margin | 21.6% | 20.8% | +0.9 pts |
Figures for the quarter ended Feb 2026 and the quarter ended Feb 2025, as reported to the SEC.
How the stock took it
Oracle Corp closed at $149.40 on Mar 10, 2026, the last session before the report, and at $159.16 on Mar 12, 2026, the first session after it — +6.5% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| Dec 11, 2025 | $223.01 | $189.97 | -14.8% |
| Sep 10, 2025 | $241.51 | $307.86 | +27.5% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · company report / earnings call · company report (fundamentals) · earnings call