Chicago, IL – March 16, 2026
Oracle Corporation (ORCL) reported exceptional fiscal Q3 2026 results with total revenue rising 22% year-over-year to $17.2 billion. Cloud revenue surged 44% to $8.9 billion, while cloud infrastructure revenue grew 84% to $4.9 billion. Non-GAAP EPS increased 21% to $1.79, exceeding consensus estimates. Remaining performance obligations (RPO), indicating contracted future revenue, skyrocketed 325% to $553 billion, significantly higher than Oracle’s projected FY2026 revenue of $67 billion. The company also raised its FY2027 revenue guidance to $90 billion.
Despite this solid performance, Oracle’s stock has declined over 50% since last fall, attributed to investor skepticism regarding heavy capital investments in AI infrastructure, with FY2026 capital expenditures reaching $39.2 billion against $17.4 billion in operating cash flow. The company’s total debt has now surpassed $134 billion. This drastic financial posture contrasts with competitors like Amazon, Microsoft, and Meta Platforms, which have managed their investments to maintain profitability.
Oracle’s current valuation stands at approximately 21x forward earnings, presenting a compelling opportunity amid growing revenue and a vast contracted revenue backlog. However, risks persist regarding the quality of the backlog and future profitability as the AI landscape evolves.
