Oracle Q3 Revenue & EPS Surge

Published: March 10, 2026

ORACLE CORP

Direct News

Oracle (ORCL) reported Q3 FY26 revenue growth of 22% year-over-year.
GAAP diluted EPS rose 24% year-over-year for Q3 FY26.
Report date: 2026-03-10.

Historical Context

This Q3 FY26 report follows a period of material corporate activity in late 2025. On December 10, 2025 Oracle posted a Q2 revenue and profit surge that was boosted by a gain on the sale of Ampere assets, and the company completed a major debt issuance totaling $17.88 billion on the same date. The board also declared a $0.50 per share dividend payable in January 2026. Those events affect near-term cash flow and capital structure and provide important context for interpreting the Q3 FY26 results.

What drove the quarter

The reported Q3 FY26 gains — revenue up 22% and GAAP EPS up 24% — are consistent with Oracle's longer-term mix toward cloud and recurring revenue. In fiscal 2025 the company derived 76.7% of total revenues from Cloud Services & License Support, which remains the primary growth engine for the business. Oracle's business model emphasizes subscription-based, high-retention revenue: remaining performance obligations (RPO) stood at $137.8 billion as of May 31, 2025, with approximately one-third expected to be recognized over the next 12 months. Current deferred revenues were reported at $9,313 million, supporting near-term revenue visibility.

Financial profile and margins

Fiscal 2025 scale and operating leverage are notable context for the Q3 results. For FY2025 Oracle reported $57,399 million in total revenues and operating income of $14,160 million, with operating margin expanding to 24.7% (up 250 basis points year-over-year). Net income for FY2025 was $10,886 million. Balance-sheet items investors should note from FY2025: cash and cash equivalents of $10,454 million, total assets of $144,214 million, total liabilities of $132,945 million and stockholders' equity of $11,269 million. Common shares outstanding were 2,807 million. These metrics sit alongside an active capital-allocation posture (see history block for recent debt and dividend activity).

Segment and product context

Oracle's Cloud and License segment drives the bulk of revenue and margin. In FY2025 that segment generated $49,230 million (85.8% of total) with strong margins relative to hardware and services. Key growth drivers named by the company include Oracle Cloud Applications (Fusion ERP, NetSuite and related SaaS offerings) and Oracle Cloud Infrastructure (OCI). Hardware remains a smaller, declining but profitable business (FY2025 hardware revenue $2,936 million). Services revenue was $5,233 million in FY2025, reflecting a lower-margin offering compared with cloud license support. R&D investment remained significant in absolute terms ($8,915 million in FY2025), supporting product initiatives such as autonomous database, OCI and Fusion applications.

Risks and investor considerations

Q3 strength sits alongside a range of legal, tax and operational risks documented by the company. Notable items from the company's disclosures include an ongoing Netherlands privacy class action, gross unrecognized tax benefits reported at $7.8 billion as of May 31, 2025, and derivative litigation related to prior acquisitions. Macroeconomic and market risks—cloud market competition, pricing pressure from hyperscalers and foreign-exchange sensitivity given roughly 45% of revenues are international—remain relevant when assessing sustainability of high growth rates. Operationally, continued cloud expansion requires data-center capacity and continued investment; Oracle reported increased cloud-related operating expenses in FY2025 as it scales OCI and cloud services. Investors should weigh the quarter's growth against these structural and execution risks.

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More Strategic Insights

ORCL

Mar 10, 2026

Direct News

Historical Context

What drove the quarter

Financial profile and margins

Segment and product context

Risks and investor considerations

Investor FAQ

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