Oracle Corporation announced that Q3 fiscal 2026 was an exceptional quarter with financial results that exceeded expectations.
“This Q3 was the first quarter in over 15 years where organic total revenue and non-GAAP earnings per share both grew at 20% or more in USD. Cloud revenue was at the high end of our guidance, total revenue was at the high end of constant currency guidance and above USD guidance, and non-GAAP earnings per share were above our guidance in both USD and constant currency.” The company stated.
In Q3 FY26, Total quarterly revenues were up 22% in USD, and up 18% in constant currency to $17.2 billion. Cloud revenues were up 44% in USD, and up 41% in constant currency to $8.9 billion. Software revenues were up 3%.
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%.
The company said, “The demand for cloud computing for AI training and inferencing continues to grow faster than supply. Furthermore, some of the largest consumers of AI Cloud capacity have recently strengthened their financial positions quite substantially. These market dynamics enable Oracle to comfortably meet and likely exceed our revenue growth rate forecast for FY27 and beyond.”
Oracle’s forward-looking guidance for Q4 2026 includes:
- Total revenues are expected to grow from 18% to 20% in constant currency and are expected to grow from 19% to 21% in USD.
- Total Cloud revenue is expected to grow between 44% to 48% in constant currency and is expected to grow from 46% to 50% in USD.
- Non-GAAP earnings per share is expected to grow between 15% to 17% and be between $1.92 and $1.96 in constant currency and grow between 15% to 17% and be between $1.96 and $2.00 in USD.
Larry Ellison, Oracle’s co-founder, said on a conference call with analysts, “Thank God we have these coding tools now that allow us to build a comprehensive set of software, agent-based software, to implement, to automate a complete ecosystem like healthcare or financial services. That’s what we’re doing at Oracle. That’s why we think we’re a disruptor. That’s why we think the SaaS apocalypse applies to others but not to us.”
Oracle stock surged 10% after the earnings report was released.
By CEO NA Editorial Staff
