Oracle beat Q3 estimates and lifted its revenue outlook as cloud demand drove strong growth and a surge in backlog.
Summary:
Oracle reported fiscal Q3 2026 revenue of $17.19B, beating estimates of $16.89B.
Adjusted operating margin reached 43%, slightly ahead of the expected 42.7%.
Cloud revenue (IaaS + SaaS) totaled $8.9B, narrowly topping forecasts.
Software revenue rose to $6.12B, supported by strong support and license sales.
Remaining performance obligations surged to $553B, up sharply from $130B a year earlier.
Oracle raised its total revenue outlook to $90B, reflecting strong demand for cloud infrastructure and applications.
Oracle reported stronger-than-expected fiscal third-quarter results, buoyed by continued demand for its cloud services and enterprise software offerings.
The company posted adjusted revenue of $17.19 billion, exceeding market expectations of $16.89 billion. Profitability also improved, with the adjusted operating margin reaching 43%, slightly ahead of the 42.7% analysts had anticipated. Adjusted operating income came in at $7.38 billion, beating forecasts of $7.21 billion.
Cloud services remained the key driver of growth. Revenue from cloud infrastructure and software-as-a-service (SaaS) combined totaled $8.9 billion, marginally ahead of estimates of $8.84 billion. Within that segment, cloud application revenue (SaaS) reached $4.0 billion, broadly in line with expectations.
Oracle also recorded solid gains in its traditional software business. Overall software revenue rose to $6.12 billion, beating forecasts of $5.97 billion. Within that category, software support revenue reached $4.97 billion, above the $4.89 billion estimate, while software license revenue totaled $1.15 billion, slightly ahead of expectations of $1.1 billion.
A key highlight of the report was the company’s remaining performance obligations (RPO) — a measure of contracted future revenue — which surged to $553 billion, compared with $130 billion a year earlier. The jump signals strong forward demand for Oracle’s cloud infrastructure and long-term service agreements, particularly as enterprises expand AI-related computing workloads.
Reflecting the strong momentum, Oracle raised its total revenue guidance to $90 billion, indicating confidence that cloud demand will continue to accelerate. The company has been investing heavily in expanding its cloud infrastructure footprint as it competes with hyperscale rivals in supporting large-scale enterprise workloads and artificial intelligence applications.
The results reinforce Oracle’s ongoing transition from a traditional software vendor toward a cloud-focused enterprise technology provider.
