- Q3 Remaining Performance Obligations $553 billion, up 325% year-over-year in USD
- Q3 GAAP Earnings per Share up 24% to $1.27, Non-GAAP Earnings per Share up 21% to $1.79
- Q3 Total Revenue $17.2 billion, up 22% in USD and up 18% in constant currency
- Q3 Cloud Revenue (IaaS plus SaaS) $8.9 billion, up 44% in USD and up 41% in constant currency
- Q3 Cloud Infrastructure Revenue (IaaS) $4.9 billion, up 84% in USD and up 81% in constant currency
- Q3 Oracle Cloud Database (IaaS) Revenue up 35%, Multicloud Database Revenue up 531% in USD
- Q3 Cloud Application (SaaS) Revenue $4.0 billion, up 13% in USD and up 11% in constant currency
- Q3 Fusion Cloud ERP (SaaS) Revenue $1.1 billion, up 17% in USD and up 14% in constant currency
- Q3 NetSuite Cloud ERP (SaaS) Revenue $1.1 billion, up 14% in USD and up 11% in constant currency
AUSTIN, Texas, March 10, 2026/PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today 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.
Financial Results for 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% in USD, and down 1% in constant currency to $6.1 billion.
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% in constant currency. GAAP net income was $3.7 billion. Non-GAAP net income was $5.2 billion, up 23% in USD and up 18% in constant currency. Q3 GAAP earnings per share was $1.27, up 24% in USD and up 16% in constant currency. Non-GAAP earnings per share was $1.79, up 21% in USD and up 16% in constant currency.
Short-term deferred revenues were $9.9 billion. Over the last twelve months, operating cash flow was $23.5 billion, up 13% in USD.
Remaining Performance Obligations
Remaining Performance Obligations, or RPO, ended the quarter at $553 billion, up 325% from last year and up $29 billion from last quarter. Most of the increase in RPO in Q3 related to large scale AI contracts where Oracle does not expect to have to raise any incremental funds to support these contracts as most of the equipment needed is either funded upfront via customer prepayments so Oracle can purchase the GPUs, or the customer buys the GPUs and supplies them to Oracle.
Capital Funding
In February, we announced our intent to raise up to $50 billion dollars in debt and equity financing, along with the statement that we do not expect to issue any additional bonds beyond this amount in calendar year 2026. Within days of the announcement, Oracle raised $30 billion through a combination of investment grade bonds and mandatory convertible preferred stock, with a record order book that was substantially oversubscribed. We have not yet initiated the at-the-market equity portion of the financing program.
AI Market and Technology Evolution
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.
AI models for generating computer code have become so efficient that we have been restructuring our product development teams into smaller, more agile and productive groups. This new AI Code Generation technology is enabling us to build more software in less time with fewer people. Oracle is now building more SaaS applications for more industries at a lower cost. AI code generation is making our SaaS application suites more competitive and more profitable.
Guidance for Q4 FY26
The company is providing the following forward-looking guidance for Q4 2026:
- 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.
Guidance for Fiscal Years 2026 and 2027
For fiscal year 2026, we expect revenue of $67 billion and capital expenditures of $50 billion. This is unchanged from our most recent previous guidance.
For fiscal year 2027, we are raising total revenue guidance to $90 billion.
Common Stock Quarterly Dividend
The board of directors declared a quarterly cash dividend of $0.50 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on April 9, 2026, with a payment date of April 24, 2026.
Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor/.
About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.
Trademarks
Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company--ushering in the new era of cloud computing.
"Safe Harbor" Statement: Statements in this press release relating to future plans, expectations, beliefs, intentions and prospects, including our expectations that we will not need to raise capital to support our new large-scale AI contracts signed in Q3, our intention not to issue additional bonds in calendar year 2026, growing demand for cloud computing increasing our revenue growth, expected future total revenues, expected future total Cloud revenue, expected future non-GAAP earnings per share, and expected future capital expenditures are "forward-looking statements" and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services, including our AI products; our management of complex cloud and hardware offerings, including the sourcing of technologies and technology components such as graphic processing units; our ability to anticipate, plan for, secure and manage datacenter capacity; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions; business volatility and risks associated with government contracting; economic, political and market conditions, including tariffs and trade wars; information technology system failures, privacy and data security concerns; cybersecurity breaches; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of March 10, 2026. Oracle undertakes no duty to update any statement in light of new information or future events.
ORACLE CORPORATION
Q3 FISCAL 2026 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
Three Months Ended February 28, % Increase
% Increase (Decrease)
2026 % of 2025 % of (Decrease) in Constant
Revenues Revenues in US $ Currency (1)
REVENUES
Cloud $8,914 52 % $6,210 44 % 44 % 41 %
Software 6,119 36 % 5,926 42 % 3 % (1 %)
Hardware 714 4 % 703 5 % 2 % (2 %)
Services 1,443 8 % 1,291 9 % 12 % 8 %
Total revenues 17,190 100 % 14,130 100 % 22 % 18 %
OPERATING EXPENSES
Cloud and software 4,776 28 % 2,882 20 % 66 % 63 %
Hardware 183 1 % 197 1 % (7 %) (11 %)
Services 1,133 7 % 1,116 8 % 2 % (2 %)
Sales and marketing 2,052 12 % 2,119 15 % (3 %) (6 %)
Research and development 2,607 15 % 2,429 17 % 7 % 7 %
General and administrative 389 2 % 390 3 % 0 % (2 %)
Amortization of intangible assets 413 2 % 548 4 % (25 %) (25 %)
Acquisition related and other 20 0 % 28 0 % (28 %) (27 %)
Restructuring 153 1 % 63 1 % 142 % 126 %
Total operating expenses 11,726 68 % 9,772 69 % 20 % 18 %
OPERATING INCOME 5,464 32 % 4,358 31 % 25 % 19 %
Interest expense (1,180) (7 %) (892) (6 %) 32 % 32 %
Non-operating income (expenses), net 132 1 % (18) 0 %
*
*
INCOME BEFORE INCOME TAXES 4,416 26 % 3,448 25 % 28 % 20 %
Provision for income taxes 695 4 % 512 4 % 36 % 27 %
NET INCOME $3,721 22 % $2,936 21 % 27 % 18 %
Preferred stock dividends 22
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $3,699 $2,936
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS:
Basic $1.29 $1.05
Diluted $1.27 $1.02
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 2,874 2,799
Diluted 2,912 2,874
(1) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency
information to provide a framework for
assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current
and comparative prior period results for
entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May
31, 2025, which was the last day of our prior
fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the
United States dollar during the three months
ended February 28, 2026 compared with the corresponding prior year period increased our total revenues by 4 percentage points, total operating
expenses by 2 percentage points and
operating income by 6 percentage points.
*
Not meaningful
ORACLE CORPORATION
Q3 FISCAL 2026 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
Three Months Ended February 28, % Increase % Increase
(Decrease)
(Decrease) in Constant
Currency (2)
in US $
2026 2026 2025 2025 GAAP Non-GAAP GAAP Non-GAAP
GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
TOTAL REVENUES $17,190
$ - $17,190 $14,130
$ - $14,130 22 % 22 % 18 % 18 %
TOTAL OPERATING EXPENSES $11,726 $(1,914) $9,812 $9,772 $(1,837) $7,935 20 % 24 % 18 % 21 %
Stock-based compensation (3) 1,328 (1,328) 1,198 (1,198) 11 % * 11 % *
Amortization of intangible assets (4) 413 (413) 548 (548) (25 %) * (25 %) *
Acquisition related and other 20 (20) 28 (28) (28 %) * (27 %) *
Restructuring 153 (153) 63 (63) 142 % * 126 % *
OPERATING INCOME $5,464 $1,914 $7,378 $4,358 $1,837 $6,195 25 % 19 % 19 % 14 %
OPERATING MARGIN % 32 % 43 % 31 % 44 % 94 bp. (92) bp. 16 bp. (135) bp.
INCOME TAX EFFECTS (5) $695 $412 $1,107 $512 $542 $1,054 36 % 5 % 27 % 0 %
NET INCOME $3,721 $1,502 $5,223 $2,936 $1,295 $4,231 27 % 23 % 18 % 18 %
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $3,699 $1,502 $5,201 $2,936 $1,295 $4,231 26 % 23 % 18 % 17 %
DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO $1.27 $1.79 $1.02 $1.47 24 % 21 % 16 % 16 %
COMMON SHAREHOLDERS
DILUTED WEIGHTED AVERAGE COMMON 2,912 2,912 2,874 2,874 1 % 1 % 1 % 1 %
SHARES OUTSTANDING
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our
consolidated
financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures
and the material limitations on the usefulness of these measures, please see Appendix A.
(2) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying
businesses
performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are
converted into
United States dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.
(3)
Stock-based compensation was included in the following GAAP operating expense categories:
Three Months Ended
Three Months Ended
February 28, 2026
February 28, 2025
GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
Cloud and software $171 $(171)
$ - $160 $(160)
$ -
Hardware 8 (8) 8 (8)
Services 58 (58) 54 (54)
Sales and marketing 212 (212) 200 (200)
Research and development 785 (785) 675 (675)
General and administrative 94 (94) 101 (101)
Total stock-based compensation $1,328 $(1,328)
$ - $1,198 $(1,198)
$ -
(4)
Estimated future annual amortization expense related to intangible assets as of February 28, 2026 was as follows:
Remainder of fiscal 2026 $421
Fiscal 2027 729
Fiscal 2028 692
Fiscal 2029 618
Fiscal 2030 580
Fiscal 2031 375
Thereafter 226
Total intangible assets, net $3,641
(5) Income tax effects were calculated reflecting an effective GAAP tax rate of 15.7% and 14.9% in the third quarter of fiscal 2026 and 2025, respectively, and an effective non-GAAP tax rate of 17.5% and 19.9% in the third
quarter of
fiscal 2026 and 2025, respectively. The difference in our GAAP and non-GAAP tax rates in each of the third quarters of fiscal 2026 and 2025 was primarily due to the net tax effects related to stock-based compensation
expense;
acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was
previously recorded
due to the partial realignment of our legal entity structure.
*
Not meaningful
ORACLE CORPORATION
Q3 FISCAL 2026 YEAR TO DATE FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
Nine Months Ended February 28, % Increase
% Increase (Decrease)
2026 % of 2025 % of (Decrease) in Constant
Revenues Revenues in US $ Currency (1)
REVENUES
Cloud $24,076 50 % $17,769 43 % 35 % 34 %
Software 17,717 37 % 17,756 43 % 0 % (3 %)
Hardware 2,160 4 % 2,086 5 % 4 % 1 %
Services 4,220 9 % 3,885 9 % 9 % 7 %
Total revenues 48,173 100 % 41,496 100 % 16 % 14 %
OPERATING EXPENSES
Cloud and software 12,373 26 % 8,226 20 % 50 % 49 %
Hardware 576 1 % 530 1 % 9 % 6 %
Services 3,401 7 % 3,430 8 % (1 %) (3 %)
Sales and marketing 6,263 13 % 6,345 15 % (1 %) (3 %)
Research and development 7,658 16 % 7,206 18 % 6 % 6 %
General and administrative 1,174 2 % 1,135 3 % 3 % 2 %
Amortization of intangible assets 1,239 3 % 1,763 4 % (30 %) (30 %)
Acquisition related and other 55 0 % 72 0 % (24 %) (25 %)
Restructuring 961 2 % 220 1 % 337 % 325 %
Total operating expenses 33,700 70 % 28,927 70 % 17 % 15 %
OPERATING INCOME 14,473 30 % 12,569 30 % 15 % 11 %
Interest expense (3,160) (6 %) (2,600) (6 %) 22 % 22 %
Non-operating income, net 2,872 6 % 39 0 % *
*
INCOME BEFORE INCOME TAXES 14,185 30 % 10,008 24 % 42 % 36 %
Provision for income taxes (2) 1,402 3 % 992 2 % 41 % 35 %
NET INCOME $12,783 27 % $9,016 22 % 42 % 36 %
Preferred stock dividends 22
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $12,761 $9,016
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS:
Basic $4.47 $3.24
Diluted $4.38 $3.15
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 2,855 2,783
Diluted 2,914 2,865
(1) We compare the percent change in the results from one period to another period using constant currency disclosure. We present
constant currency information
to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate
fluctuations. To present this
information, current and comparative prior period results for entities reporting in currencies other than United States dollars
are converted into United States
dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual
exchange rates in effect during
the respective periods. Movements in international currencies relative to the United States dollar during the nine months ended
February 28, 2026 compared
with the corresponding prior year period increased our total revenues by 2 percentage points, total operating expenses by 2
percentage points and operating
income by 4 percentage points.
(2) Provision for income taxes for the nine months ended February 28, 2026 includes the impact of the U.S. One, Big, Beautiful Bill
Act, which was signed into
law on July 4, 2025.
*
Not meaningful
ORACLE CORPORATION
Q3 FISCAL 2026 YEAR TO DATE FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
Nine Months Ended February 28, % Increase
(Decrease) % Increase (Decrease)
in US $
in Constant Currency
(2)
2026 2026 2025 2025 GAAP Non-GAAP GAAP Non-GAAP
GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
TOTAL REVENUES $48,173
$ - $48,173 $41,496
$ - $41,496 16 % 16 % 14 % 14 %
TOTAL OPERATING EXPENSES $33,700 $(5,863) $27,837 $28,927 $(5,429) $23,498 17 % 18 % 15 % 17 %
Stock-based compensation (3) 3,608 (3,608) 3,374 (3,374) 7 %
* 7 % *
Amortization of intangible assets (4) 1,239 (1,239) 1,763 (1,763) (30 %)
* (30 %) *
Acquisition related and other 55 (55) 72 (72) (24 %)
* (25 %) *
Restructuring 961 (961) 220 (220) 337 %
* 325 % *
OPERATING INCOME $14,473 $5,863 $20,336 $12,569 $5,429 $17,998 15 % 13 % 11 % 10 %
OPERATING MARGIN % 30 % 42 % 30 % 43 % (25) bp. (116) bp. (81) bp. (149) bp.
INCOME TAX EFFECTS (5) $1,402 $2,543 $3,945 $992 $2,042 $3,034 41 % 30 % 35 % 26 %
NET INCOME $12,783 $3,320 $16,103 $9,016 $3,387 $12,403 42 % 30 % 36 % 26 %
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $12,761 $3,320 $16,081 $9,016 $3,387 $12,403 42 % 30 % 36 % 26 %
DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO $4.38 $5.52 $3.15 $4.33 39 % 27 % 33 % 24 %
COMMON SHAREHOLDERS
DILUTED WEIGHTED AVERAGE COMMON 2,914 2,914 2,865 2,865 2 % 2 % 2 % 2 %
SHARES OUTSTANDING
(1)
This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our
consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the
usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.
(2) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying
businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States
dollars
are converted into United States dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.
(3)
Stock-based compensation was included in the following GAAP operating expense categories:
Nine Months Ended
Nine Months Ended
February 28, 2026
February 28, 2025
GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
Cloud and software $478 $(478)
$ - $459 $(459)
$ -
Hardware 21 (21) 21 (21)
Services 158 (158) 150 (150)
Sales and marketing 574 (574) 556 (556)
Research and development 2,100 (2,100) 1,902 (1,902)
General and administrative 277 (277) 286 (286)
Total stock-based compensation $3,608 $(3,608)
$ - $3,374 $(3,374)
$ -
(4)
Estimated future annual amortization expense related to intangible assets as of February 28, 2026 was as follows:
Remainder of fiscal 2026 $421
Fiscal 2027 729
Fiscal 2028 692
Fiscal 2029 618
Fiscal 2030 580
Fiscal 2031 375
Thereafter 226
Total intangible assets, net $3,641
(5) Income tax effects were calculated reflecting an effective GAAP tax rate and non-GAAP tax rate of 9.9% and 19.7%, respectively, in each of the first nine months of fiscal 2026 and 2025. The difference in our GAAP and
non-
GAAP tax rates in each of the first nine months of fiscal 2026 and 2025 was primarily due to the net tax effects related to stock-based compensation expense; acquisition related and other items, including the tax effects
on
amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal
entity
structure; and, for the first nine months of fiscal 2026, the impact of the U.S. One, Big, Beautiful Bill Act (refer to Appendix A for additional information).
*
Not meaningful
ORACLE CORPORATION
Q3 FISCAL 2026 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in millions)
February 28, May 31,
2026 2025
ASSETS
Current Assets:
Cash and cash equivalents $38,455 $10,786
Marketable securities 677 417
Trade receivables, net 10,719 8,558
Prepaid expenses and other current assets 5,023 4,818
Total Current Assets 54,874 24,579
Non-Current Assets:
Property, plant and equipment, net 83,617 43,522
Intangible assets, net 3,641 4,587
Goodwill 62,274 62,207
Deferred tax assets 11,360 11,877
Other non-current assets 29,474 21,589
Total Non-Current Assets 190,366 143,782
TOTAL ASSETS $245,240 $168,361
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes payable and other borrowings, current $9,887 $7,271
Accounts payable 9,474 5,113
Accrued compensation and related benefits 1,940 2,243
Deferred revenues 9,881 9,387
Other current liabilities 9,555 8,629
Total Current Liabilities 40,737 32,643
Non-Current Liabilities:
Notes payable and other borrowings, non-
current 124,718 85,297
Income taxes payable 11,402 10,269
Operating lease liabilities 18,512 11,536
Other non-current liabilities 10,820 7,647
Total Non-Current Liabilities 165,452 114,749
Stockholders' Equity 39,051 20,969
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $245,240 $168,361
ORACLE CORPORATION
Q3 FISCAL 2026 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)
Nine Months Ended February 28,
2026 2025
Cash Flows From Operating Activities:
Net income $12,783 $9,016
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 5,208 2,715
Amortization of intangible assets 1,239 1,763
Deferred income taxes (295) (1,097)
Stock-based compensation 3,608 3,374
Gains from investments and other, net (2,149) 422
Changes in operating assets and liabilities:
Increase in trade receivables, net (2,201) (312)
Decrease in prepaid expenses and other assets 1,386 603
Decrease in accounts payable and other liabilities (821) (633)
Decrease in income taxes payable (1,651) (1,222)
Increase in deferred revenues 250 35
Net cash provided by operating activities 17,357 14,664
Cash Flows From Investing Activities:
Purchases of marketable securities and other investments (1,663) (838)
Proceeds from sales and maturities of marketable securities and other investments 4,857 444
Capital expenditures (39,170) (12,135)
Net cash used for investing activities (35,976) (12,529)
Cash Flows From Financing Activities:
Proceeds from issuances of common stock 1,317 520
Payments for repurchases of common stock (95) (450)
Shares repurchased for tax withholdings upon vesting of restricted stock-based awards (111) (900)
Proceeds from issuances of mandatory convertible preferred stock, net of issuance costs 4,954
Payments of dividends to stockholders (4,285) (3,340)
Proceeds from (repayments of) commercial paper and other short-term financing, net 2,279 (396)
Proceeds from issuances of senior notes, term loan credit agreements and other borrowings, net of issuance costs 44,544 19,548
Repayments of senior notes, term loan credit agreements and other borrowings (2,193) (9,771)
Other financing activities, net (215) (299)
Net cash provided by financing activities 46,195 4,912
Effect of exchange rate changes on cash and cash equivalents 93 (95)
Net increase in cash and cash equivalents 27,669 6,952
Cash and cash equivalents at beginning of period 10,786 10,454
Cash and cash equivalents at end of period $38,455 $17,406
ORACLE CORPORATION
Q3 FISCAL 2026 FINANCIAL RESULTS
FREE CASH FLOW - TRAILING FOUR-QUARTERS (1)
($ in millions)
Fiscal 2025
Fiscal 2026
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
GAAP Operating Cash Flow $19,126 $20,287 $20,745 $20,821 $21,534 $22,296 $23,514
Capital Expenditures (7,855) (10,745) (14,933) (21,215) (27,414) (35,477) (48,250)
Free Cash Flow $11,271 $9,542 $5,812 $(394) $(5,880) $(13,181) $(24,736)
Operating Cash Flow % Growth over prior year 8 % 19 % 14 % 12 % 13 % 10 % 13 %
Free Cash Flow % Growth over prior year 19 %
(6 %)
(53 %)
(103 %)
(152 %) (238 %) (526 %)
GAAP Net Income $10,976 $11,624 $12,160 $12,443 $12,441 $15,425 $16,210
Operating Cash Flow as a % of Net Income 174 % 175 % 171 % 167 % 173 % 145 % 145 %
Free Cash Flow as a % of Net Income 103 % 82 % 48 %
(3 %)
(47 %)
(85 %) (153 %)
(1) To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows on a trailing four-quarter basis to
analyze cash flow generated from
operations. We believe free cash flow is also useful as one of the bases for comparing our performance with our competitors. The presentation of
non-GAAP free cash flow is not meant
to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from
operating activities as a measure of liquidity.
ORACLE CORPORATION
Q3 FISCAL 2026 FINANCIAL RESULTS
SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1)
($ in millions)
Fiscal 2025 Fiscal 2026
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
REVENUES BY OFFERINGS
Cloud $5,623 $5,937 $6,210 $6,737 $24,506 $7,186 $7,977 $8,914 $24,076
Software license 870 1,195 1,129 2,007 5,201 766 939 1,150 2,856
Software support 4,896 4,869 4,797 4,961 19,523 4,955 4,938 4,969 14,861
Software 5,766 6,064 5,926 6,968 24,724 5,721 5,877 6,119 17,717
Hardware 655 728 703 850 2,936 670 776 714 2,160
Services 1,263 1,330 1,291 1,348 5,233 1,349 1,428 1,443 4,220
Total revenues $13,307 $14,059 $14,130 $15,903 $57,399 $14,926 $16,058 $17,190 $48,173
AS REPORTED REVENUE GROWTH RATES
Cloud 21 % 24 % 23 % 27 % 24 % 28 % 34 % 44 % 35 %
Software license 7 % 1 % (10 %) 9 % 2 % (12 %) (21 %) 2 % (11 %)
Software support 0 % 0 % (2 %) 1 % 0 % 1 % 1 % 4 % 2 %
Software 1 % 0 % (4 %) 3 % 0 % (1 %) (3 %) 3 % 0 %
Hardware (8 %) (4 %) (7 %) 1 % (4 %) 2 % 7 % 2 % 4 %
Services (9 %) (3 %) (1 %) (2 %) (4 %) 7 % 7 % 12 % 9 %
Total revenues 7 % 9 % 6 % 11 % 8 % 12 % 14 % 22 % 16 %
CONSTANT CURRENCY REVENUE GROWTH RATES (2)
Cloud 22 % 24 % 25 % 27 % 24 % 27 % 33 % 41 % 34 %
Software license 8 % 3 % (8 %) 8 % 3 % (13 %) (23 %) (2 %) (13 %)
Software support 0 % 0 % 0 % 0 % 0 % (1 %) 0 % 0 % 0 %
Software 1 % 0 % (2 %) 2 % 1 % (2 %) (5 %) (1 %) (3 %)
Hardware (8 %) (3 %) (5 %) 0 % (4 %) 1 % 5 % (2 %) 1 %
Services (8 %) (3 %) 1 % (2 %) (3 %) 5 % 6 % 8 % 7 %
Total revenues 8 % 9 % 8 % 11 % 9 % 11 % 13 % 18 % 14 %
CLOUD REVENUES BY OFFERINGS
Cloud applications $3,469 $3,503 $3,558 $3,742 $14,272 $3,839 $3,898 $4,026 $11,762
Cloud infrastructure 2,154 2,434 2,652 2,995 10,234 3,347 4,079 4,888 12,314
Total cloud revenues $5,623 $5,937 $6,210 $6,737 $24,506 $7,186 $7,977 $8,914 $24,076
AS REPORTED REVENUE GROWTH RATES
Cloud applications 10 % 10 % 9 % 12 % 10 % 11 % 11 % 13 % 12 %
Cloud infrastructure 45 % 52 % 49 % 52 % 50 % 55 % 68 % 84 % 70 %
Total cloud revenues 21 % 24 % 23 % 27 % 24 % 28 % 34 % 44 % 35 %
CONSTANT CURRENCY REVENUE GROWTH RATES (2)
Cloud applications 10 % 10 % 10 % 11 % 10 % 10 % 11 % 11 % 10 %
Cloud infrastructure 46 % 52 % 51 % 52 % 51 % 54 % 66 % 81 % 68 %
Total cloud revenues 22 % 24 % 25 % 27 % 24 % 27 % 33 % 41 % 34 %
GEOGRAPHIC REVENUES
Americas $8,372 $8,933 $9,000 $10,034 $36,339 $9,662 $10,467 $11,361 $31,490
Europe/Middle East/Africa 3,228 3,381 3,421 3,996 14,025 3,481 3,760 3,964 11,204
Asia Pacific 1,707 1,745 1,709 1,873 7,035 1,783 1,831 1,865 5,479
Total revenues $13,307 $14,059 $14,130 $15,903 $57,399 $14,926 $16,058 $17,190 $48,173
(1)
The sum of the quarterly information presented may vary from the year-to-date information presented due to rounding.
(2) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency
information to provide a
framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this
information, current and comparative
prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange
rates in effect on May 31, 2025
and 2024 for the fiscal 2026 and fiscal 2025 constant currency growth rate calculations presented, respectively, rather than the actual exchange
rates in effect during the respective periods.
APPENDIX A
ORACLE CORPORATION
Q3 FISCAL 2026 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects related to each of the below items except for the impact of the U.S. One, Big, Beautiful Bill Act:
• Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses, income tax effects and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.
• Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses, income tax effects and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.
• Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses, income tax effects and net income measures. We incurred expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses consisted of personnel-related costs for transitional and certain other employees, certain business combination adjustments including certain adjustments after the measurement period has ended, and certain other operating items, net. Restructuring expenses consisted of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. Although acquisition related and other expenses and restructuring expenses may diminish over time with respect to past acquisitions and/or strategic initiatives, we generally will incur certain of these expenses in connection with any future acquisitions and/or strategic initiatives.
• Impact of the U.S. One, Big, Beautiful Bill Act (OBBBA): OBBBA was signed into law on July 4, 2025. We recorded a net tax expense of $958 million during the first quarter of fiscal 2026, primarily related to the remeasurement of a deferred tax liability previously recorded during fiscal 2021, as part of the partial realignment of our legal entity structure. We have excluded the impact of this charge from our non-GAAP income taxes and net income measures in the first nine months of fiscal 2026. We believe making these adjustments provides insight to our operating performance and comparability to past operating results.
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SOURCE Oracle
Ken Bond, Oracle Investor Relations, 1.650.607.0349, ken.bond@oracle.com; Deborah Hellinger, Oracle Corporate Communications, 1.212.508.7935, deborah.hellinger@oracle.com