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    ORCL
    Earnings call· Feb 2026(Q3 FY26)

    ORACLE Q3 FY26 earnings call ORCL

    Mar 10, 2026 Source

    Executive summary

    Oracle Q3 FY26 — Strong AI Infrastructure and Cloud Applications Growth

    Oracle delivered a strong quarter driven by accelerating demand for its AI infrastructure and cloud applications. The company is leveraging AI to enhance its SaaS offerings and expand its ecosystem automation capabilities, while also securing significant power and data center capacity for future growth. Strategic partnerships and innovative funding models are enabling rapid expansion without increasing Oracle's capital requirements.

    Highlights

    5

    • Organic total revenue grew 20% or better in USD, exceeding expectations.

    • Organic non-GAAP EPS grew 20% or better in USD, exceeding expectations.

    • Multicloud Database revenue grew 531% year-over-year.

    • AI infrastructure revenue grew 243% year-over-year.

    • Cloud applications revenue grew 11% in constant currency, reaching an annualized run rate of $16.1 billion.

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Cloud Applications
    Growth figures are in constant currency. Oracle's SaaS solutions are industry-complete platforms, trusted for mission-critical systems. The company is embedding AI agents into applications to accelerate development and deliver solutions.
    Annualized run rate: $16.1BFusion ERP growth: 14%Fusion SCM growth: 15%Fusion HCM growth: 15%Fusion CX growth: 6%NetSuite growth: 11%Industry SaaS solutions growth: 19%
    		—11%——
    Multicloud Database
    Rapid growth driven by partnerships to bring Oracle Database to all clouds, unlocking enormous backlog. AI is accelerating adoption, as customers need access to latest AI features and co-location of data with agents.
    Microsoft regions live: 33Google regions live: 14AWS regions live (start of Q3): 2AWS regions live (end of Q3): 8AWS regions live (end of Q4 target): 22
    		—531%——
    AI Infrastructure
    Demand continues to exceed supply. Gross margin for AI capacity delivered in Q3 was above 30% guidance. Investments are optimized for profitability through flexible design, high utilization, and rapid handover.
    Power and data center capacity secured: >10 GW over next 3 yearsCapacity funded by partners: >90%Rack output increase: 4x in last yearTime from rack delivery to revenue reduction: 60% in past monthsCapacity delivered to customers in Q3: >400 MWCommitted capacity delivered on/ahead of schedule: 90%
    		—243%—32%

    Operational metrics

    8
    Organic total revenue growth
    20% or better
    Q3 FY26

    First quarter in over 15 years where both organic total revenue and organic non-GAAP EPS grew at 20% or better in USD.

    Organic non-GAAP EPS growth
    20% or better
    Q3 FY26

    First quarter in over 15 years where both organic total revenue and organic non-GAAP EPS grew at 20% or better in USD.

    Financing program intent
    $50B
    CY26

    Announced intent to raise up to $50 billion in debt and equity financing.

    Financing raised
    $30B
    Q3 FY26

    Raised $30 billion within days of the announcement.

    Cloud applications deferred revenue growth
    14%YoY
    Q3 FY26

    Supports acceleration thesis, compared to in-quarter cloud applications revenue growth of 11%.

    Customer go-lives
    over 2,000
    Q3 FY26

    Significant number of customers went live across various Oracle applications.

    OCI Database Services margins
    60% to 80%
    Q3 FY26

    Much higher margins compared to AI infrastructure gross margin.

    AI infrastructure contracts signed
    $29B
    since last earnings call

    These contracts are in addition to other deals signed this quarter.

    Industry KPIs

    6
    MetricValueDetails
    Capacity CAPEX>10 GWGW
    Revenue growth11%%
    Arr net new arr$16.1BUSD
    Rpo current rpo$553BUSD
    Customer account countover 2,000customers
    Ai product adoption monetizationover 1,000agents

    Orderbook & backlog

    1
    RPO (Remaining Performance Obligations)$553BQ3 FY26

    This figure is unusually high and may be an ASR error for $55.3B. Captured verbatim as stated in the transcript. Represents demand that exceeds supply for AI infrastructure.

    Product announcements

    3
    ProductTypeDetails
    New CX Applications (Lead Generation & Qualification, Sales Orchestration & Automated Selling, Website Generator)launch
    AI-powered Ambulatory EHRlaunch
    AI Agent Studio inside Fusionlaunch

    Deals & partnerships

    4
    TikTok U.S. / ByteDanceequity investment

    TikTok U.S. completed the separation of its U.S. data operations from ByteDance into an independent company.

    MicrosoftMulticloud Database partnership

    Oracle Database Cloud Services are available in 33 Microsoft regions.

    GoogleMulticloud Database partnership

    Oracle Database Cloud Services are available in 14 Google regions.

    Amazon (AWS)Multicloud Database partnership

    Oracle Database Cloud Services were live in 2 AWS regions at the start of Q3, 8 by the end of Q3, and are targeted to be in 22 AWS regions by the end of Q4.

    Capital programs

    1
    Data Center and Power Capacity Expansionunderway
    Funding: Partners (over 90% of capacity)

    Benefit: >10 GW of power and data center capacity

    Secured more than 10 gigawatts of power and data center capacity coming online over the next 3 years. Over 90% of this capacity is fully funded through partners, with the remainder planned to finish funding this month. Optimized data center construction through standardized designs, improved supply chain, tripled manufacturing sites, and increased rack output by 4x in the last year.

    Q&A highlights

    6

    Is the halo effect from AI infrastructure translating into business for traditional cloud workloads and applications? Can you provide visibility into CapEx for FY27?

    Mike Sicilia confirmed a significant halo effect, citing embedded AI services in applications, OCI's cost efficiency creating budget for transformations, and the strength of sovereign AI offerings. Doug Kehring stated FY27 CapEx guidance would come after the fiscal year-end, highlighting the uncoupling of CapEx from Oracle's capital requirements due to new funding mechanisms.

    “Yes, we absolutely are seeing a halo effect, and let me add a little bit of color on that. As far as the apps business, the fact that we're training so many models on OCI and so closely provisioned to our applications allows us to embed very high-quality AI services right into our applications, as I said, as features.”

    asked by John DiFucci · answered by Mike Sicilia

    2 min read6 chapters

    Detailed Narrative

    01

    TikTok U.S. Equity Stake

    In January, TikTok U.S. completed the separation of its U.S. data operations from ByteDance, resulting in Oracle holding a 15% equity stake and a Board seat. There is no impact to revenue from existing services. Oracle will account for this investment under the equity method, recognizing its share of the new company's earnings in Q4 FY26, which will be recorded as nonoperating income or loss.

    02

    Strategic Financing Initiatives

    Oracle announced its intent to raise up to $50 billion in debt and equity financing, with no additional bonds expected in calendar year 2026 beyond this amount. The company successfully raised $30 billion through investment-grade bonds and mandatory convertible preferred stock, which was substantially oversubscribed. The at-the-market equity portion of the financing program has not yet been initiated.

    03

    AI-Powered SaaS Innovation

    Oracle is rapidly adopting AI coding tools to accelerate its SaaS business and embed AI agents into existing applications. This has enabled the development of three new CX applications: lead generation and qualification, sales orchestration and automated selling, and a new website generator. Over 1,000 AI agents have been delivered within horizontal back office and industry applications, enhancing solutions in healthcare, banking, and retail.

    04

    Multicloud Database Expansion

    Oracle's Multicloud Database strategy is expanding rapidly, with global region coverage achieved across partner clouds. There are now 33 regions live with Microsoft and 14 with Google. AWS integration is also accelerating, with 2 regions live at the start of Q3, 8 by the end of Q3, and a target of 22 by the end of Q4. This expansion is driven by customer demand for database services in other clouds and the need for AI features like vector embeddings and advanced security.

    05

    AI Infrastructure Build-Out and Funding

    Demand for AI infrastructure continues to exceed supply, with Oracle securing over 10 gigawatts of power and data center capacity for the next three years. More than 90% of this capacity is fully funded through partners. Oracle has optimized data center construction, tripled manufacturing sites, and increased rack output by 4x in the last year. New business models, including bring-your-own-hardware and upfront customer payments, have enabled over $29 billion in new contracts without negative cash flow impact to Oracle.

    06

    Sovereign Cloud and Ecosystem Automation

    Oracle is uniquely positioned to deliver sovereign cloud solutions, offering full-stack OCI services, including applications and AI data platforms, within sovereign zones. This model provides flexibility in data sovereignty, operations, and contracting, catering to both national and enterprise-specific requirements. The company is focused on automating entire ecosystems, such as healthcare and financial services, through comprehensive, agent-based software suites.

    AI-generated summary of the company’s earnings call. Not investment advice.