OpenNashEarnings

Oracle (ORCL) · Software

Oracle Q3 FY2026 earnings: summary, key numbers & outlook

Results filed 10 Mar 2026 · Quarter ended 28 Feb 2026

Press release ↗Investor relations ↗

Summaries and transcripts are machine-generated and can contain errors.

In brief

Oracle reported Q3 Total Revenue of $17.2 billion, up 22% in USD, GAAP Earnings per Share up 24% to $1.27, Non-GAAP Earnings per Share up 21% to $1.79, and Remaining Performance Obligations of $553 billion, up 325% year-over-year in USD.

Oracle's third quarter of fiscal 2026 brought revenue of $17.2 billion, up 22% in USD and 18% in constant currency. Cloud revenue rose 44% to $8.9 billion, led by cloud infrastructure at $4.9 billion, up 84%. Software revenue grew only 3%. GAAP EPS was $1.27 and non-GAAP EPS was $1.79. Remaining performance obligations, Oracle's contracted backlog, reached $553 billion, up $29 billion from the prior quarter.

For Q4 FY26, Oracle guides to total revenue growth of 19% to 21% in USD and non-GAAP EPS of $1.96 to $2.00. It raised its fiscal 2027 revenue guidance to $90 billion. The main tension is funding. Capital expenditures are guided to $50 billion for fiscal 2026, trailing four-quarter free cash flow is negative $24.7 billion, and debt has grown. Management says the large AI contracts need no incremental funding.

Key numbers

Total revenue · GAAP
$17.2 billion

up 22% in USD and up 18% in constant currency

GAAP net income · GAAP
$3.7 billion

GAAP diluted EPS · GAAP
$1.27

up 24% in USD and up 16% in constant currency

Non-GAAP EPS · non-GAAP
$1.79

up 21% in USD and up 16% in constant currency

GAAP operating income · GAAP
$5.5 billion

Non-GAAP operating income · non-GAAP
$7.4 billion

up 19% year-over-year in USD and up 14% in constant currency

Operating cash flow, last twelve months · GAAP
$23.5 billion

up 13% in USD

Free cash flow, trailing four quarters · non-GAAP
-$24.7B

(526%) growth over prior year

Segment or metricValueChange
Cloud revenue (IaaS plus SaaS)$8.9 billionup 44% in USD and up 41% in constant currency
Cloud infrastructure (IaaS)$4.9 billionup 84% in USD and up 81% in constant currency
Cloud applications (SaaS)$4.0 billionup 13% in USD and up 11% in constant currency
Software revenue$6.1 billionup 3% in USD, and down 1% in constant currency
Fusion Cloud ERP (SaaS)$1.1 billionup 17% in USD and up 14% in constant currency
NetSuite Cloud ERP (SaaS)$1.1 billionup 14% in USD and up 11% in constant currency
Multicloud Database revenue531%up 531% in USD
Where each number comes from
  • Total revenue: “Q3 Total Revenue $17.2 billion, up 22% in USD and up 18% in constant currency”
  • GAAP net income: “GAAP net income was $3.7 billion. Non-GAAP net income was $5.2 billion, up 23% in USD and up 18% in constant currency.”
  • GAAP diluted EPS: “Q3 GAAP earnings per share was $1.27, up 24% in USD and up 16% in constant currency.”
  • Non-GAAP EPS: “Non-GAAP earnings per share was $1.79, up 21% in USD and up 16% in constant currency.”
  • GAAP operating income: “Q3 GAAP operating income was $5.5 billion. Non-GAAP operating income was $7.4 billion, up 19% year-over-year in USD and up 14% in constant currency.”
  • Non-GAAP operating income: “Q3 GAAP operating income was $5.5 billion. Non-GAAP operating income was $7.4 billion, up 19% year-over-year in USD and up 14% in constant currency.”
  • Operating cash flow, last twelve months: “Over the last twelve months, operating cash flow was $23.5 billion, up 13% in USD.”
  • Free cash flow, trailing four quarters: “Free Cash Flow | $11,271 | $9,542 | $5,812 | $(394) | $(5,880) | $(13,181) | $(24,736)”
  • Cloud revenue (IaaS plus SaaS): “Q3 Cloud Revenue (IaaS plus SaaS) $8.9 billion, up 44% in USD and up 41% in constant currency”
  • Cloud infrastructure (IaaS): “Q3 Cloud Infrastructure Revenue (IaaS) $4.9 billion, up 84% in USD and up 81% in constant currency”
  • Cloud applications (SaaS): “Q3 Cloud Application (SaaS) Revenue $4.0 billion, up 13% in USD and up 11% in constant currency”
  • Software revenue: “Software revenues were up 3% in USD, and down 1% in constant currency to $6.1 billion.”
  • Fusion Cloud ERP (SaaS): “Q3 Fusion Cloud ERP (SaaS) Revenue $1.1 billion, up 17% in USD and up 14% in constant currency”
  • NetSuite Cloud ERP (SaaS): “Q3 NetSuite Cloud ERP (SaaS) Revenue $1.1 billion, up 14% in USD and up 11% in constant currency”
  • Multicloud Database revenue: “Q3 Oracle Cloud Database (IaaS) Revenue up 35%, Multicloud Database Revenue up 531% in USD”

Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.

From the filingQ3 FY2026vs year agovs last quarter
Revenue$17.2B+21.7%+7.0%
Operating income$5.5B+25.4%+15.5%
Net income$3.7B+26.7%−39.3%
Diluted EPS$1.27+24.5%−39.5%
Free cash flow-$11.5B—−15.2%
Operating margin31.8%+1.0 pts+2.3 pts

Calculated by code from XBRL, not by the model.

Outlook

MetricPeriodOutlook
Total revenue growth, constant currencyQ4 FY2618% to 20% in constant currency
Total revenue growth, USDQ4 FY2619% to 21% in USD
Total Cloud revenue growth, constant currencyQ4 FY2644% to 48% in constant currency
Total Cloud revenue growth, USDQ4 FY2646% to 50% in USD
Non-GAAP EPS, constant currencyQ4 FY26between $1.92 and $1.96 in constant currency
Non-GAAP EPS, USDQ4 FY26between $1.96 and $2.00 in USD
Total revenuefiscal year 2026$67 billion
Capital expendituresfiscal year 2026$50 billion
Total revenuefiscal year 2027$90 billion

Key takeaways

  1. Cloud infrastructure growth accelerated to 84%

    Cloud Infrastructure Revenue (IaaS) was $4.9 billion, up 84% in USD and up 81% in constant currency. Total Cloud revenue reached $8.9 billion, up 44% in USD.

  2. Backlog reached $553 billion, up 325%

    RPO rose $29 billion from last quarter, mostly from large scale AI contracts. Oracle says it does not expect to raise incremental funds for these contracts.

  3. Fiscal 2027 revenue guidance raised to $90 billion

    Management raised total revenue guidance for fiscal 2027 to $90 billion. Fiscal 2026 guidance is unchanged at revenue of $67 billion and capital expenditures of $50 billion.

  4. Trailing free cash flow turned deeply negative

    Free cash flow over the last four quarters was $(24,736) million, as capital expenditures of $(48,250) million outpaced operating cash flow of $23,514 million.

  5. Balance sheet leverage rose sharply with financing

    Notes payable and other borrowings, non-current, rose to $124,718 million from $85,297 million in May 2025. Oracle raised $30 billion in bonds and mandatory convertible preferred stock after announcing plans for up to $50 billion.

Charts

Revenue$17.2B+21.7% y/yQ3 FY26
Q2 FY25: $14.1BQ2 25$14.1BQ3 FY25: $14.1BQ3 25$14.1BQ4 FY25: $15.9B (worked out from the annual figure)Q4 25$15.9BQ1 FY26: $14.9BQ1 26$14.9BQ2 FY26: $16.1BQ2 26$16.1BQ3 FY26: $17.2BQ3 26$17.2BQ4 FY26: $19.2B (worked out from the annual figure)Q4 26$19.2BQ1 FY27: $19.3BQ1 27$19.3B

Fourth quarter worked out from the annual figure.

Data
Q2 FY25$14.1B
Q3 FY25$14.1B
Q4 FY25$15.9B *
Q1 FY26$14.9B
Q2 FY26$16.1B
Q3 FY26$17.2B
Q4 FY26$19.2B *
Q1 FY27$19.3B
Diluted EPS (GAAP)$1.27+24.5% y/yQ3 FY26
Q2 FY25: $1.10Q2 25$1.10Q3 FY25: $1.02Q3 25$1.02Q1 FY26: $1.01Q1 26$1.01Q2 FY26: $2.10Q2 26$2.10Q3 FY26: $1.27Q3 26$1.27Q1 FY27: $1.56Q1 27$1.56
Data
Q2 FY25$1.10
Q3 FY25$1.02
Q1 FY26$1.01
Q2 FY26$2.10
Q3 FY26$1.27
Q1 FY27$1.56

Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.

Operating margin31.8%+1.0 pts y/yQ3 FY26
Q2 FY25: 30.0%Q2 2530.0%Q3 FY25: 30.8%Q3 2530.8%Q4 FY25: 32.1%Q4 2532.1%Q1 FY26: 28.7%Q1 2628.7%Q2 FY26: 29.5%Q2 2629.5%Q3 FY26: 31.8%Q3 2631.8%Q4 FY26: 32.0%Q4 2632.0%Q1 FY27: 34.8%Q1 2734.8%
Data
Q2 FY2530.0%
Q3 FY2530.8%
Q4 FY2532.1%
Q1 FY2628.7%
Q2 FY2629.5%
Q3 FY2631.8%
Q4 FY2632.0%
Q1 FY2734.8%
Free cash flow-$11.5BQ3 FY26
Q2 FY25: -$2.7BQ2 25-$2.7BQ3 FY25: $71.0MQ3 25$71.0MQ4 FY25: -$2.9BQ4 25-$2.9BQ1 FY26: -$362.0MQ1 26-$362.0MQ2 FY26: -$10.0BQ2 26-$10.0BQ3 FY26: -$11.5BQ3 26-$11.5BQ4 FY26: -$1.9BQ4 26-$1.9BQ1 FY27: -$5.4BQ1 27-$5.4B
Data
Q2 FY25-$2.7B
Q3 FY25$71.0M
Q4 FY25-$2.9B
Q1 FY26-$362.0M
Q2 FY26-$10.0B
Q3 FY26-$11.5B
Q4 FY26-$1.9B
Q1 FY27-$5.4B

Operating cash flow minus capital expenditure, from cash flow statements.

Questions

What were Oracle's Q3 FY2026 headline results?

Total revenue was $17.2 billion, up 22% in USD and 18% in constant currency. GAAP EPS was $1.27 and non-GAAP EPS was $1.79, up 24% and 21% respectively.

How fast is Oracle's cloud business growing?

Cloud revenue was $8.9 billion, up 44% in USD. Cloud infrastructure (IaaS) was $4.9 billion, up 84%, and cloud applications (SaaS) was $4.0 billion, up 13%.

What is Oracle guiding for Q4 FY26 and fiscal 2027?

For Q4 FY26, Oracle expects total revenue growth of 19% to 21% in USD and non-GAAP EPS between $1.96 and $2.00 in USD. It raised fiscal 2027 total revenue guidance to $90 billion.

How large is Oracle's remaining performance obligation backlog?

RPO was $553 billion, up 325% from last year and up $29 billion from last quarter. Most of the quarterly increase came from large scale AI contracts.

How is Oracle funding its AI buildout?

Oracle announced plans to raise up to $50 billion in debt and equity and raised $30 billion within days through bonds and mandatory convertible preferred stock. It expects capital expenditures of $50 billion in fiscal 2026, and trailing four-quarter free cash flow was $(24,736) million.

Documents

From Oracle investor relations

SEC filing