Oracle (ORCL) Q3 Earnings 2026: Inspiring Growth and Unmatched Innovation Deliver Record Results!

Oracle shares surged 8% in extended trading on Tuesday following a strong quarterly earnings report that exceeded Wall Street expectations and prompted an optimistic revenue forecast for fiscal 2027. The tech giant now projects revenue to reach $90 billion, significantly higher than the $86.6 billion anticipated by analysts surveyed by LSEG.

In its fiscal fourth quarter, Oracle expects adjusted earnings per share between $1.92 and $1.96, with revenue growth projected at 19% to 20%. This compares favorably to the LSEG consensus, which estimated earnings of $1.70 per share and a 20% increase in revenue. For the latest quarter, Oracle reported earnings of $1.79 per share and revenue of $17.19 billion, exceeding expectations of $1.70 and $16.91 billion, respectively.

The company’s overall revenue increased by 22% year over year in the fiscal third quarter, ending February 28. Net income rose to $3.72 billion, or $1.27 per share, a notable jump from $2.94 billion, or $1.02 per share, during the same period last year. It’s worth noting that adjusted earnings per share exclude stock-based compensation expenses.

Oracle’s cloud revenue reached $8.9 billion, encompassing both infrastructure and software as a service, marking a 44% increase over the previous year and surpassing analyst expectations of $8.85 billion. Moreover, revenue from cloud infrastructure saw an impressive 84% growth, outpacing the previous quarter’s 68% increase. Notable clients in this segment include Air France-KLM, Argonne National Laboratory, Lockheed Martin, and SoftBank Corp.

Despite the positive results, Oracle’s shares have fallen over 50% since their peak in September, affected by widespread concerns in the software sector regarding artificial intelligence and apprehension over the company’s considerable debt used to fuel its AI initiatives. Through Tuesday’s close, Oracle stock had declined 23% in 2026, contrasting sharply with the S&P 500’s marginal drop of less than 1% during the same timeframe.

Oracle has secured significant contracts to provide cloud infrastructure for AI firms, including OpenAI, but it currently maintains less cash than larger competitors such as Amazon and Microsoft. Renting Nvidia graphics chips yields lower profit margins compared to software licensing, with the company reporting a striking $13.18 billion in negative free cash flow over the last year. In response to growing demand, Oracle announced plans to raise between $45 billion and $50 billion in the upcoming fiscal year to enhance its cloud infrastructure.

The overall strong performance may reassure anxious investors, underscoring Oracle’s growing demand for AI infrastructure. The company saw its remaining performance obligations quadruple to $553 billion compared to a year earlier, although this figure slightly missed StreetAccount’s consensus of $556 billion. Oracle stated that it has the financial capacity to support this growth, attributing most of the increase in RPO to large-scale AI contracts.

In Abilene, Texas, Oracle and Crusoe are developing a data center for OpenAI, with Oracle confirming that two buildings are operational and the remaining structures on schedule. This follows reports that plans for expansion had been scrapped, which Oracle disputed.

On a positive note, Oracle secured $110 million in funding at the end of February, with participation from significant investors like Amazon and Nvidia. Additionally, the company hinted at restructuring efforts in response to enhanced efficiency enabled by AI technologies. Executives indicated that these advancements allow Oracle to develop more software faster, with fewer resources.

Executives will discuss the latest results during a conference call at 5 p.m. ET, providing further insights into Oracle’s strategic direction and performance trends.

This article reflects the most recent insights and developments concerning Oracle’s financial health and growth trajectory, illustrating its ongoing commitment to evolving in the competitive tech landscape.

— CNBC’s Ari Levy contributed to this report.

Original Source: https://www.cnbc.com/2026/03/10/oracle-orcl-q3-earnings-report-2026.html
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Publish Date: 2026-03-11 02:12:00