Oracle had good news yesterday. Its Q3 2026 closed with strong earnings per share ($1.79 adjusted EPS versus expected $1.70), GAAP adjusted EPS at $1.27, and revenue topping $17.19 billion versus the expected $16.91 billion. All three were up versus prior year by 20% or more for the first time in 15 years. They had $8.9 billion in total cloud revenue, including infrastructure and SaaS, beating analyst estimates of $8.85 billion. Q4 revenue is also expected to grow in the 20% range versus prior year, while EPS in the 17-20% range. Oracle’s Q3 closed 28 February, making for an unusual quarterly structure.
For FY2026, Oracle projects revenue of $67 billion and capital expenditures of $50 billion. FY2027, starting 1 June, is pegged at a stunning $90 billion, again beating industry analysts’ consensus of $86.6 billion.
In terms of financing and raises, Oracle last month had announced that they intended to raise an additional $50 billion dollars in debt and equity financing. Beyond this, they do not expect to issue any additional bonds in CY2026. There is a substantial backlog of what’s called “Remaining Performance Obligations” that more than quadrupled to $553 billion from a year earlier, but from the release, “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.”
Overall, it looks like a good year for Oracle as they focus on cloud and AI infrastructure. But the stock, which rose late today by 8-10%, still is beaten down 50% from its high last September. There is still a lot of skepticism by Mr. Market about hyperscaling AI, how fast this can be done, profitably, and specifically about Oracle’s hefty debt burden.
There is not one word about Oracle Health, either in their release or on reporting this Editor has reviewed about the investor call–or about layoffs which would impact Q4. Yahoo Finance, CNBC
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