ORCL · Q3 2026 Earnings

Bullish

Oracle Corporation

Reported March 10, 2026

30-second summary

30-second take: Revenue grew 22% YoY to $17.2B with non-GAAP EPS of $1.79, but the print is about two numbers: IaaS revenue +84% YoY (continuing the step-up from +55% in Q1 and +68% in Q2) and RPO at $553B, crossing the half-trillion threshold management telegraphed two quarters ago. Oracle also raised FY27 total revenue guidance to $90B — the multi-year OCI curve disclosed in Q1 is now being re-underwritten higher with a quarter of acceleration in the bank.

Headline numbers

EPS

Q3 FY2026

$1.79

Revenue

Q3 FY2026

$17.20B

+22.0% YoY

Operating margin

Q3 FY2026

43.0%

Key financials

Q3 FY2026

Metric	Q3 FY2026	YoY	Q1 FY2026	QoQ
Revenue	$17.20B	+22.0%	$14.93B	+15.2%
EPS	$1.79	—	$1.47	+21.8%
Operating margin	43.0%	—	29.0%	+1400bps

Guidance

Oracle reaffirmed FY2026 revenue and CapEx while raising FY2027 guidance to $90B (+34% YoY), signaling accelerating Cloud and AI-driven growth beyond current fiscal year.

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q3 FY2026	—	$17.2 billion	in-line	Met
Revenue (Total Cloud)	Q3 FY2026	—	$8.9 billion (44% YoY growth)	in-line	Met
EPS (Non-GAAP)	Q3 FY2026	—	$1.79	in-line	Met

New guidance

Metric	Period	Guide	YoY
Revenue	Q4 FY2026	$17.06 billion to $17.34 billion	+7-9% YoY
Total Cloud Revenue Growth	Q4 FY2026	44% to 48% constant currency; 46% to 50% USD	—
EPS (Non-GAAP)	Q4 FY2026	$1.92 to $1.96 (constant currency); $1.96 to $2.00 (USD)	—
Revenue	FY2027	$90 billion	+34% YoY

Reaffirmed unchanged this quarter: Revenue ($67 billion), Capital Expenditures ($50 billion)

Segment performance

Q3 FY2026

Segment	Q3 FY2026	YoY
Cloud Infrastructure (IaaS)	$4.9B	+84.0%
Cloud Applications (SaaS)	$4B	+13.0%
Fusion Cloud ERP (SaaS)	$1.1B	+17.0%
NetSuite Cloud ERP (SaaS)	$1.1B	+14.0%
Total Cloud (IaaS + SaaS)	$8.9B	+44.0%
Software	$6.1B	+3.0%
Hardware	$0.714B	+2.0%
Services	$1.443B	+12.0%

Platform metrics

Q3 FY2026

Segment	Q3 FY2026
Remaining Performance Obligations (RPO)	$553 billion
Cloud Revenue Growth	44% in USD, 41% constant currency
Cloud Infrastructure Revenue Growth	84% in USD, 81% constant currency
Multicloud Database Revenue Growth	531% in USD
Oracle Cloud Database (IaaS) Revenue Growth	35%
Short-term Deferred Revenues	$9.9 billion

Profitability

Q3 FY2026

Segment	Q3 FY2026
Operating Margin (Non-GAAP)	43%
Operating Cash Flow (LTM)	$23.5 billion

Other KPIs

Q3 FY2026

Segment	Q3 FY2026	YoY
Americas	$11.361B	+26.3%
Europe/Middle East/Africa	$3.964B	+15.9%
Asia Pacific	$1.865B	+9.1%

Management tone

Transcript not available for this brief; tone reading is press-release-derived only.

Narrative arc: Q4 FY25 cloud acceleration promise → Q1 FY26 multi-year OCI curve disclosed → Q3 FY26 curve raised and acceleration delivered.

The substantive shift this quarter is from forward commitment to forward commitment plus in-quarter validation. Q4 FY25 was a guide-only quarter ("FY26 will be dramatically higher"). Q1 FY26 added a five-year dollar curve ending at $144B in FY30. Q3 FY26 delivers a quarter of 84% IaaS growth and uses the room created by that print to raise FY27 total revenue guidance to $90B — pulling the multi-year commitment forward and embedding acceleration earlier in the curve.

The qualitative language has also shifted from defensive to offensive on margins. Management's framing that most large-scale AI contracts "do not require incremental capital as most of the equipment needed is either funded upfront via customer prepayments...or the customer buys the GPUs and supplies them to Oracle" is a direct response to the capex/FCF concern that LTM FCF -$5.88B raised at Q1. The claim that AI code generation is enabling Oracle to "build more SaaS applications for more industries at a lower cost" — alongside restructuring product teams into smaller AI-augmented groups — is the first time the company has framed AI as a P&L tailwind for its own cost structure rather than just a demand driver.

What the release does not say is also notable: no update to the FY28 / FY30 OCI curve, despite the FY27 raise. Either those outer-year numbers are now conservative, or management is preserving optionality for a future quarter's reveal.

Answers to last quarter's watch list

OCI growth trajectory — IaaS printed +84% YoY in Q3 vs +68% in Q2, +55% in Q1, and +52% in Q4 FY25. The ramp has built each quarter, not back-loaded. Status: Resolved positively

RPO progression toward $500B — $553B at Q3 vs $455B at Q1, a $98B build over two quarters ($29B QoQ in Q3 alone) that cleared the half-trillion marker management telegraphed for full-year FY26 a quarter early. Status: Resolved positively

Capex and free cash flow — FY26 capex guide reaffirmed at $50B; LTM operating cash flow $23.5B (vs $21.5B at Q1) but LTM capex of $48.3B drove LTM FCF to -$24.7B, a sharp deterioration from -$5.88B at Q1 and -$13.2B at Q2. The capex/FCF concern has worsened, not abated — management's claim that large AI contracts are funded by customer prepayments is now the key narrative to validate against the cash flow statement on the next disclosure. Status: Worsened — continue monitoring closely

MultiCloud database revenue disclosure — Management gave a growth rate (+531% YoY) but again did not disclose the absolute dollar base. Disclosure framework unchanged. Status: Continue monitoring

Q2 dollar guidance — Q3 release contained explicit Q4 FY26 growth ranges and an EPS dollar range ($1.92–$1.96 cc / $1.96–$2.00 USD) — more granular than Q1's omission, though the company stopped short of a Q4 revenue dollar range. Status: Partially resolved

What to watch into next quarter

IaaS sustaining above 70%: Q3 printed +84%. The FY26 guide is ">70%" and the FY27 $90B revenue commitment implicitly requires IaaS to stay materially above that level. A Q4 IaaS print below ~75% would suggest Q3 included a contract recognition spike rather than a sustainable run-rate.

RPO QoQ build cadence: $29B added QoQ in Q3 (a moderation vs the larger Q1→Q2 build). Watch whether Q4 sustains $25B+ of net RPO addition — the multi-year OCI step requires the booking pipeline to keep replenishing as the current backlog converts to revenue.

Free cash flow trajectory: LTM FCF deteriorated to -$24.7B at Q3 (vs -$13.2B Q2, -$5.88B Q1) as LTM capex hit $48.3B. The next FCF print is the cleanest test of management's "customer prepayments fund the equipment" claim — if prepayments are real, they should begin showing up as a working-capital tailwind to operating cash flow.

Multicloud database dollar disclosure: +531% growth at Q3 vs +817% at Q2 (deceleration is mathematical as the base scales). A dollar figure remains the missing piece to quantify the multi-billion-dollar customer narrative.

FY28 / FY30 OCI curve refresh: the FY27 raise to $90B implicitly raises the question of whether the prior outer-year figures are now stale. Watch whether the Q4 print or the FY27 kickoff includes an updated curve.

Q4 USD vs cc growth split: the +19–21% USD vs +18–20% cc Q4 guide implies a ~1pt FX tailwind. Watch whether currency moves through quarter-end widen or narrow that gap.

Sources

Oracle Corporation Q3 FY2026 Press Release (Exhibit 99.1), filed March 10, 2026 — https://www.sec.gov/Archives/edgar/data/1341439/000119312526100148/orcl-ex99_1.htm
Oracle Corporation Q1 FY2026 Press Release (Exhibit 99.1), September 9, 2025 — https://www.sec.gov/Archives/edgar/data/1341439/000119312525199175/orcl-ex99_1.htm
Oracle Corporation Q4 FY2025 Press Release (Exhibit 99.1), June 11, 2025 — https://www.sec.gov/Archives/edgar/data/1341439/000095017025084831/orcl-ex99_1.htm

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