Oracle (ORCL) Q3 2026 earnings summary

Executive summary

• Q3 FY26 delivered exceptional results, with total revenue up 22% year-over-year to $17.19 billion, driven by strong growth in cloud and software revenues, which now represent 88% of total revenues.

• Organic total revenue and organic non-GAAP EPS both grew at 20% or more in USD for the first time in over 15 years.

• Net income for the quarter was $3.72 billion, up 27% from $2.94 billion in the prior year period; diluted EPS rose to $1.27 from $1.02.

• Oracle accelerated momentum in cloud applications, AI infrastructure, and multi-cloud database services, with over 2,000 customer go-lives and significant wins over competitors.

• Strategic investments included a 15% equity stake in TikTok U.S. and a $50 billion financing initiative, with $30 billion already raised.

Financial highlights

• Cloud revenues grew 44% year-over-year to $8.91 billion, now accounting for 52% of total revenues.

• Q3 GAAP net income was $3.7 billion; non-GAAP net income was $5.2 billion, up 23% year-over-year.

• Operating margin improved to 32% of revenues for the quarter, with non-GAAP operating margin at 43%.

• Free cash flow for the trailing four quarters was negative, reflecting significant capital expenditures for data center expansion.

• Cash and cash equivalents increased to $38.5 billion as of February 28, 2026.

Outlook and guidance

• Q4 FY26 revenue expected to grow 19–21% in USD; cloud revenue expected to grow 46–50%.

• FY26 revenue guidance reaffirmed at $67 billion; FY27 revenue guidance raised to $90 billion.

• Management expects continued growth in cloud and software revenues, driven by demand for cloud offerings and ongoing customer renewals.

• Capital expenditures are expected to remain elevated as the company expands data center capacity to meet demand.