# Oracle (ORCL) Q3 FY2026 earnings

Results filed 2026-03-10 for the quarter ended 2026-02-28. Source page: https://earnings.opennash.com/companies/orcl/2026-q3/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1341439/000119312526100148/0001193125-26-100148-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total revenue | $17.2 billion | up 22% in USD and up 18% in constant currency | GAAP |
| GAAP net income | $3.7 billion |  | GAAP |
| GAAP diluted EPS | $1.27 | up 24% in USD and up 16% in constant currency | GAAP |
| Non-GAAP EPS | $1.79 | up 21% in USD and up 16% in constant currency | non-GAAP |
| GAAP operating income | $5.5 billion |  | GAAP |
| Non-GAAP operating income | $7.4 billion | up 19% year-over-year in USD and up 14% in constant currency | non-GAAP |
| Operating cash flow, last twelve months | $23.5 billion | up 13% in USD | GAAP |
| Free cash flow, trailing four quarters | $(24,736) | (526%) growth over prior year | non-GAAP |
| Remaining performance obligations | $553 billion | up 325% year-over-year in USD |  |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Cloud revenue (IaaS plus SaaS) | $8.9 billion | up 44% in USD and up 41% in constant currency |
| Cloud infrastructure (IaaS) | $4.9 billion | up 84% in USD and up 81% in constant currency |
| Cloud applications (SaaS) | $4.0 billion | up 13% in USD and up 11% in constant currency |
| Software revenue | $6.1 billion | up 3% in USD, and down 1% in constant currency |
| Fusion Cloud ERP (SaaS) | $1.1 billion | up 17% in USD and up 14% in constant currency |
| NetSuite Cloud ERP (SaaS) | $1.1 billion | up 14% in USD and up 11% in constant currency |
| Multicloud Database revenue | 531% | up 531% in USD |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Total revenue growth, constant currency | Q4 FY26 | 18% to 20% in constant currency |
| Total revenue growth, USD | Q4 FY26 | 19% to 21% in USD |
| Total Cloud revenue growth, constant currency | Q4 FY26 | 44% to 48% in constant currency |
| Total Cloud revenue growth, USD | Q4 FY26 | 46% to 50% in USD |
| Non-GAAP EPS, constant currency | Q4 FY26 | between $1.92 and $1.96 in constant currency |
| Non-GAAP EPS, USD | Q4 FY26 | between $1.96 and $2.00 in USD |
| Total revenue | fiscal year 2026 | $67 billion |
| Capital expenditures | fiscal year 2026 | $50 billion |
| Total revenue | fiscal 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.

## 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.

## Slides and investor documents

- [Webcast](https://events.q4inc.com/attendee/766832881) (Webcast replay)
- [Financial Tables](https://s23.q4cdn.com/440135859/files/doc_financials/2026/q3/Q326_Form8K_Exhibit99-1_Earnings_Release_Tables_FINAL-V1.pdf) (Financial tables)
- [Customer Wins](https://www.oracle.com/customers/earnings/) (Document)
- [Detailed Financials Tables xls](https://s23.q4cdn.com/440135859/files/doc_financials/2026/q3/Q326_Form8K_Exhibit99-1_Earnings_Release_Tables_FINAL-V1_IR-Version.xlsx) (Document)
- [10-Q](https://d18rn0p25nwr6d.cloudfront.net/CIK-0001341439/751a926c-6f62-4baf-8f51-80cbcafdc616.pdf) (Document)