10-QPeriod: Q3 FY2026

ORACLE CORP Quarterly Report for Q3 Ended Feb 28, 2026

Filed March 11, 2026For Securities:ORCLORCL-PD

Summary

Oracle Corporation's (ORCL) third quarter and year-to-date results for the period ending February 28, 2026, indicate robust growth, primarily driven by its cloud and software business. Total revenues saw a significant increase year-over-year, with cloud revenues, particularly from infrastructure, showing substantial expansion. This growth is supported by increased investment in data center capacity. The company's balance sheet reflects a substantial increase in cash and cash equivalents, largely due to strong operating cash flows and significant debt issuances, including $43 billion in senior notes. Oracle also successfully issued $5 billion in Mandatory Convertible Preferred Stock. While debt levels have increased, the company maintains compliance with its covenants and appears to have sufficient liquidity. Profitability remains strong, with an increase in operating income. However, increased operating expenses, particularly in cloud infrastructure and research and development, are notable. The company also reported significant restructuring charges related to its 2026 Restructuring Plan. Investors should monitor the ongoing shift towards cloud services and the associated investments and expense growth.

Financial Highlights

53 data points
Beta

Revenue

$17.19B

Net Income

$3.72B

21.6% Net Margin

EPS (Diluted)

$1.27

Total Assets

$245.24B

Cash & Equivalents

$38.45B

Free Cash Flow

-$11.48B

Financial Statements
Beta
Revenue$17.19B
R&D Expenses$2.61B
Operating Expenses$11.73B
Operating Income$5.46B
Interest Expense$1.18B
Net Income$3.72B
EPS (Basic)$1.29
EPS (Diluted)$1.27
Shares Outstanding (Basic)2.87B
Shares Outstanding (Diluted)2.91B

Key Highlights

  • 1Total revenues increased by 22% to $17.19 billion in Q3 fiscal 2026 compared to the prior year period.
  • 2Cloud revenues grew significantly, up 24% to $15.03 billion for the cloud and software segment in Q3 fiscal 2026.
  • 3Net income increased to $3.72 billion ($1.27 diluted EPS) for Q3 fiscal 2026, up from $2.94 billion ($1.02 diluted EPS) in Q3 fiscal 2025.
  • 4The company issued $43.0 billion in senior notes during the first nine months of fiscal 2026, increasing its debt.
  • 5Cash, cash equivalents, and marketable securities significantly increased to $39.13 billion as of February 28, 2026.
  • 6Operating expenses rose by 20% to $11.73 billion in Q3 fiscal 2026, driven by cloud infrastructure investments and R&D.
  • 7A new $10.0 billion revolving credit agreement was entered into in March 2026.

Frequently Asked Questions

Oracle's revenue growth is primarily driven by its Cloud and Software business, particularly strong performance in Cloud Applications and Cloud Infrastructure. Customers are increasingly adopting Oracle's cloud offerings, leading to sustained revenue increases in this segment.

Oracle has significantly increased its cash, cash equivalents, and marketable securities, reaching $39.13 billion as of February 28, 2026. This increase is largely due to substantial proceeds from issuing $43.0 billion in senior notes and $5.0 billion in Mandatory Convertible Preferred Stock, alongside strong operating cash flows. While debt levels have risen, the company reports compliance with covenants and adequate liquidity.

The company is making significant investments in its cloud infrastructure to meet growing customer demand. This is reflected in the substantial increase in cloud and software expenses, particularly infrastructure costs. While these investments are driving revenue growth, they are also increasing operating expenses.

Oracle is involved in several legal proceedings, including a class action lawsuit in the Netherlands concerning privacy regulations and a securities class action regarding its cloud infrastructure business. The company believes it has meritorious defenses in both cases and does not expect a material impact on its financial position or results of operations.