Oracle Corp(NYSE:ORCL) reported financial results for the third quarter of fiscal 2026 Tuesday after the market close. Here's a rundown of the software giant's report.
- Oracle stock is trending after earnings.
Oracle Tops Estimates In Q3
Oracle posted third-quarter revenue of $17.19 billion, beating analyst estimates of $16.91 billion, according to Benzinga Pro. Adjusted earnings grew 21% year-over-year to $1.79 per share, beating analyst estimates of $1.71 per share.
Total revenue was up 22% on a year-over-year basis as cloud revenue climbed 44% and software revenue rose by 3%. Here’s a breakdown of revenue by segment:
- Cloud: $8.9 billion, up 44%
- Cloud Infrastructure: $4.9 billion, up 84%
- Cloud Database: up 35%
- Cloud Application: $4 billion, up 13%
- Fusion Cloud ERP: $1.1 billion, up 17%
- NetSuite Cloud ERP: $1.1 billion, up 14%
Remaining performance obligations totaled $553 billion at the end of the third quarter, up 325% year-over-year. Oracle ended the period with approximately $38.46 billion in cash and cash equivalents.
Oracle’s board declared a quarterly cash dividend of 50 cents per share, payable on April 24 to shareholders of record as of April 9.
Oracle expects fourth-quarter revenue to grow 18% to 20% on a year-over-year basis, roughly in line with estimates. Total cloud revenue is expected to be up between 44% and 48%. Adjusted earnings per share are expected to be between $1.96 and $2.00 in the fourth quarter, versus estimates of $1.95.
The company continues to expect fiscal 2026 revenue of $67 billion. Oracle also guided for fiscal 2027 revenue of $90 billion versus estimates of $86.63 billion.
“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,” the company said.
Oracle tends to discuss its forward outlook on its quarterly earnings call, which is scheduled for 5 p.m. ET.
ORCL Shares Move Higher After Hours
ORCL Price Action: Oracle shares were up 7.09% in after-hours Tuesday, trading at $160.24 at the time of publication, according to Benzinga Pro.
Image: Shutterstock.com