Oracle (ORCL) Q3 earnings report 2026

Oracle shares rose as much as 10% in extended trading on Tuesday after the software vendor reported quarterly results that surpassed Wall Street projections and boosted its revenue guidance for fiscal 2027.

Oracle sees $1.92 and $1.96 in adjusted earnings per share for the fiscal fourth quarter, with revenue growth between 19% and 20%. LSEG’s consensus included $1.70 per share and 20% revenue growth.

Here’s how the company did in the quarter relative to LSEG consensus:

• Earnings per share: $1.79 adjusted vs. $1.70 expected
• Revenue: $17.19 billion vs. $16.91 billion expected

Oracle’s overall revenue increased 22% year over year in the fiscal third quarter, which ended on Feb. 28, according to a statement. Net income rose to $3.72 billion, or $1.27 a share, from $2.94 billion, or $1.02 a share, in the same quarter a year earlier. Adjusted earnings per share excludes stock-based compensation expense.

The company reported $8.9 billion in total cloud revenue, including infrastructure and software as a service, or SaaS. The number was up 44% and more than the $8.85 billion consensus among analysts surveyed by StreetAccount.

Management pushed up the company’s fiscal 2027 revenue forecast by $1 billion to $90 billion. Analysts polled by LSEG had anticipated $86.6 billion.

Oracle said it generated $4.9 billion in cloud infrastructure revenue, up 84%, a faster pace than the 68% growth in the prior quarter. The company touted cloud business from Air France-KLM, Lockheed Martin, SoftBank Corp. and Microsoft’s Activision Blizzard video game subsidiary.

Shares of Oracle have plummeted over 50% from their September highs, falling along with other software vendors on broader artificial intelligence concerns as well as Wall Street’s specific fears about the company’s hefty debt load that’s funding its AI buildout.

“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,” Larry Ellison, Oracle’s co-founder, technology chief and executive chairman, said on a conference call with analysts. “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.”

As of Tuesday’s close, the stock had declined 23% in 2026, while the S&P 500 is down less than 1% in the same period.

Oracle has won large contracts to deliver cloud infrastructure to AI companies such as OpenAI, but has less cash on hand than larger competitors such as Amazon and Microsoft.

Renting out Nvidia graphics chips ekes out a smaller profit margin than selling software licenses, and Oracle reported $13.18 billion in negative free cash flow for the past 12 months.

During the quarter, Oracle…