Oracle Announces Fiscal Year 2026 Third Quarter Financial Results

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Oracle Announces Fiscal Year 2026 Third Quarter Financial Results

Q3 Remaining Performance Obligations $553 billion, up 325% year-over-year in USD
Q3 GAAP Earnings per Share up 24% to $1.27, Non-GAAP Earnings per Share up 21% to $1.79
Q3 Total Revenue $17.2 billion, up 22% in USD and up 18% in constant currency
Q3 Cloud Revenue (IaaS plus SaaS) $8.9 billion, up 44% in USD and up 41% in constant currency
Q3 Cloud Infrastructure Revenue (IaaS) $4.9 billion, up 84% in USD and up 81% in constant currency
Q3 Oracle Cloud Database (IaaS) Revenue up 35%, Multicloud Database Revenue up 531% in USD
Q3 Cloud Application (SaaS) Revenue $4.0 billion, up 13% in USD and up 11% in constant currency
Q3 Fusion Cloud ERP (SaaS) Revenue $1.1 billion, up 17% in USD and up 14% in constant currency
Q3 NetSuite Cloud ERP (SaaS) Revenue $1.1 billion, up 14% in USD and up 11% in constant currency

AUSTIN, Texas, March 10, 2026 /PRNewswire/ — Oracle Corporation (NYSE: ORCL) today announced that Q3 fiscal 2026 was an exceptional quarter with financial results that exceeded expectations. This Q3 was the first quarter in over 15 years where organic total revenue and non-GAAP earnings per share both grew at 20% or more in USD. Cloud revenue was at the high end of our guidance, total revenue was at the high end of constant currency guidance and above USD guidance, and non-GAAP earnings per share were above our guidance in both USD and constant currency.

Financial Results for Q3 FY26
Total quarterly revenues were up 22% in USD, and up 18% in constant currency to $17.2 billion. Cloud revenues were up 44% in USD, and up 41% in constant currency to $8.9 billion. Software revenues were up 3% in USD, and down 1% in constant currency to $6.1 billion.

Q3 GAAP operating income was $5.5 billion. Non-GAAP operating income was $7.4 billion, up 19% year-over-year in USD and up 14% in constant currency. GAAP net income was $3.7 billion. Non-GAAP net income was $5.2 billion, up 23% in USD and up 18% in constant currency. Q3 GAAP earnings per share was $1.27, up 24% in USD and up 16% in constant currency. Non-GAAP earnings per share was $1.79, up 21% in USD and up 16% in constant currency.

Short-term deferred revenues were $9.9 billion. Over the last twelve months, operating cash flow was $23.5 billion, up 13% in USD.

Remaining Performance Obligations
Remaining Performance Obligations, or RPO, ended the quarter at $553 billion, up 325% from last year and up $29 billion from last quarter. 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.

Capital Funding
In February, we announced our intent to raise up to $50 billion dollars in debt and equity financing, along with the statement that we do not expect to issue any additional bonds beyond this amount in calendar year 2026. Within days of the announcement, Oracle raised $30 billion through a combination of investment grade bonds and mandatory convertible preferred stock, with a record order book that was substantially oversubscribed. We have not yet initiated the at-the-market equity portion of the financing program.

AI Market and Technology Evolution
The demand for cloud computing for AI training and inferencing continues to grow faster than supply. Furthermore, some of the largest consumers of AI Cloud capacity have recently strengthened their financial positions quite substantially. These market dynamics enable Oracle to comfortably meet and likely exceed our revenue growth rate forecast for FY27 and beyond.

AI models for generating computer code have become so efficient that we have been restructuring our product development teams into smaller, more agile and productive groups. This new AI Code Generation technology is enabling us to build more software in less time with fewer people. Oracle is now building more SaaS applications for more industries at a lower cost. AI code generation is making our SaaS application suites more competitive and more profitable.

Guidance for Q4 FY26
The company is providing the following forward-looking guidance for Q4 2026:

Total revenues are expected to grow from 18% to 20% in constant currency and are expected to grow from 19% to 21% in USD.
Total Cloud revenue is expected to grow between 44% to 48% in constant currency and is expected to grow from 46% to 50% in USD.
Non-GAAP earnings per share is expected to grow between 15% to 17% and be between $1.92 and $1.96 in constant currency and grow between 15% to 17% and be between $1.96 and $2.00 in USD.

Guidance for Fiscal Years 2026 and 2027
For fiscal year 2026, we expect revenue of $67 billion and capital expenditures of $50 billion. This is unchanged from our most recent previous guidance.

For fiscal year 2027, we are raising total revenue guidance to $90 billion.

Common Stock Quarterly Dividend
The board of directors declared a quarterly cash dividend of $0.50 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on April 9, 2026, with a payment date of April 24, 2026.

Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor/.

About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.

Trademarks
Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.

“Safe Harbor” Statement: Statements in this press release relating to future plans, expectations, beliefs, intentions and prospects, including our expectations that we will not need to raise capital to support our new large-scale AI contracts signed in Q3, our intention not to issue additional bonds in calendar year 2026, growing demand for cloud computing increasing our revenue growth, expected future total revenues, expected future total Cloud revenue, expected future non-GAAP earnings per share, and expected future capital expenditures are “forward-looking statements” and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services, including our AI products; our management of complex cloud and hardware offerings, including the sourcing of technologies and technology components such as graphic processing units; our ability to anticipate, plan for, secure and manage datacenter capacity; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions; business volatility and risks associated with government contracting; economic, political and market conditions, including tariffs and trade wars; information technology system failures, privacy and data security concerns; cybersecurity breaches; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.” Copies of these filings are available online from the SEC or by contacting Oracle’s Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of March 10, 2026. Oracle undertakes no duty to update any statement in light of new information or future events.

ORACLE CORPORATION

Q3 FISCAL 2026 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)

Three Months Ended February 28,

% Increase

(Decrease)

2026

% of

2025

% of

(Decrease)

in Constant

Revenues

in US $

Currency (1)

REVENUES

Cloud

$ 8,914

52 %

$ 6,210

44 %

41 %

Software

6,119

36 %

5,926

42 %

3 %

(1 %)

Hardware

714

4 %

703

5 %

2 %

(2 %)

Services

1,443

8 %

1,291

9 %

12 %

8 %

Total revenues

17,190

100 %

14,130

100 %

22 %

18 %

OPERATING EXPENSES

Cloud and software

4,776

28 %

2,882

20 %

66 %

63 %

Hardware

183

1 %

197

1 %

(7 %)

(11 %)

Services

1,133

7 %

1,116

8 %

2 %

(2 %)

Sales and marketing

2,052

12 %

2,119

15 %

(3 %)

(6 %)

Research and development

2,607

15 %

2,429

17 %

7 %

General and administrative

389

2 %

390

3 %

0 %

(2 %)

Amortization of intangible assets

413

2 %

548

4 %

(25 %)

Acquisition related and other

0 %

(28 %)

(27 %)

Restructuring

153

1 %

142 %

126 %

Total operating expenses

11,726

68 %

9,772

69 %

20 %

18 %

OPERATING INCOME

5,464

32 %

4,358

31 %

25 %

19 %

Interest expense

(1,180)

(7 %)

(892)

(6 %)

32 %

Non-operating income (expenses), net

132

1 %

(18)

0 %

INCOME BEFORE INCOME TAXES

4,416

26 %

3,448

25 %

28 %

20 %

Provision for income taxes

695

4 %

512

4 %

36 %

27 %

NET INCOME

$ 3,721

22 %

$ 2,936

21 %

27 %

18 %

Preferred stock dividends

–

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$ 3,699

$ 2,936

EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS:

Basic

$ 1.29

$ 1.05

Diluted

$ 1.27

$ 1.02

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

2,874

2,799

Diluted

2,912

2,874

(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for

assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for

entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior

fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months

ended February 28, 2026 compared with the corresponding prior year period increased our total revenues by 4 percentage points, total operating expenses by 2 percentage points and

operating income by 6 percentage points.

Not meaningful

ORACLE CORPORATION

Q3 FISCAL 2026 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)

Three Months Ended February 28,

% Increase

(Decrease)
in US $

% Increase (Decrease)

in Constant Currency (2)

2026

2025

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

TOTAL REVENUES

$ 17,190

$ –

$ 17,190

$ 14,130

$ –

$ 14,130

22 %

18 %

TOTAL OPERATING EXPENSES

$ 11,726

$ (1,914)

$ 9,812

$ 9,772

$ (1,837)

$ 7,935

20 %

24 %

18 %

21 %

Stock-based compensation (3)

1,328

(1,328)

–

1,198

(1,198)

–

11 %

Amortization of intangible assets (4)

413

(413)

–

548

(548)

–

(25 %)

Acquisition related and other

(20)

–

(28)

–

(28 %)

(27 %)

Restructuring

153

(153)

–

(63)

–

142 %

126 %

OPERATING INCOME

$ 5,464

$ 1,914

$ 7,378

$ 4,358

$ 1,837

$ 6,195

25 %

19 %

14 %

OPERATING MARGIN %

32 %

43 %

31 %

44 %

94 bp.

(92) bp.

16 bp.

(135) bp.

INCOME TAX EFFECTS (5)

$ 695

$ 412

$ 1,107

$ 512

$ 542

$ 1,054

36 %

5 %

27 %

0 %

NET INCOME

$ 3,721

$ 1,502

$ 5,223

$ 2,936

$ 1,295

$ 4,231

27 %

23 %

18 %

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$ 3,699

$ 1,502

$ 5,201

$ 2,936

$ 1,295

$ 4,231

26 %

23 %

18 %

17 %

DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO

COMMON SHAREHOLDERS

$ 1.27

$ 1.79

$ 1.02

$ 1.47

24 %

21 %

16 %

DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING

2,912

–

2,912

2,874

–

2,874

1 %

(1)

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated

financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures

and the material limitations on the usefulness of these measures, please see Appendix A.

(2)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses

performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into

United States dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.

(3)

Stock-based compensation was included in the following GAAP operating expense categories:

Three Months Ended

February 28, 2026

February 28, 2025

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

Cloud and software

$ 171

$ (171)

$ –

$ 160

$ (160)

$ –

Hardware

(8)

–

(8)

–

Services

(58)

–

(54)

–

Sales and marketing

212

(212)

–

200

(200)

–

Research and development

785

(785)

–

675

(675)

–

General and administrative

(94)

–

101

(101)

–

Total stock-based compensation

$ 1,328

$ (1,328)

$ –

$ 1,198

$ (1,198)

$ –

(4)

Estimated future annual amortization expense related to intangible assets as of February 28, 2026 was as follows:

Remainder of fiscal 2026

$ 421

Fiscal 2027

729

Fiscal 2028

692

Fiscal 2029

618

Fiscal 2030

580

Fiscal 2031

375

Thereafter

226

Total intangible assets, net

$ 3,641

(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 15.7% and 14.9% in the third quarter of fiscal 2026 and 2025, respectively, and an effective non-GAAP tax rate of 17.5% and 19.9% in the third quarter of

fiscal 2026 and 2025, respectively. The difference in our GAAP and non-GAAP tax rates in each of the third quarters of fiscal 2026 and 2025 was primarily due to the net tax effects related to stock-based compensation expense;

acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded

due to the partial realignment of our legal entity structure.

Not meaningful

ORACLE CORPORATION

Q3 FISCAL 2026 YEAR TO DATE FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)

Nine Months Ended February 28,

% Increase

(Decrease)

2026

% of

2025

% of

(Decrease)

in Constant

Revenues

in US $

Currency (1)

REVENUES

Cloud

$ 24,076

50 %

$ 17,769

43 %

35 %

34 %

Software

17,717

37 %

17,756

43 %

0 %

(3 %)

Hardware

2,160

4 %

2,086

5 %

4 %

1 %

Services

4,220

9 %

3,885

9 %

7 %

Total revenues

48,173

100 %

41,496

100 %

16 %

14 %

OPERATING EXPENSES

Cloud and software

12,373

26 %

8,226

20 %

50 %

49 %

Hardware

576

1 %

530

1 %

9 %

6 %

Services

3,401

7 %

3,430

8 %

(1 %)

(3 %)

Sales and marketing

6,263

13 %

6,345

15 %

(1 %)

(3 %)

Research and development

7,658

16 %

7,206

18 %

6 %

General and administrative

1,174

2 %

1,135

3 %

2 %

Amortization of intangible assets

1,239

3 %

1,763

4 %

(30 %)

Acquisition related and other

0 %

(24 %)

(25 %)

Restructuring

961

2 %

220

1 %

337 %

325 %

Total operating expenses

33,700

70 %

28,927

70 %

17 %

15 %

OPERATING INCOME

14,473

30 %

12,569

30 %

15 %

11 %

Interest expense

(3,160)

(6 %)

(2,600)

(6 %)

22 %

Non-operating income, net

2,872

6 %

0 %

INCOME BEFORE INCOME TAXES

14,185

30 %

10,008

24 %

42 %

36 %

Provision for income taxes (2)

1,402

3 %

992

2 %

41 %

35 %

NET INCOME

$ 12,783

27 %

$ 9,016

22 %

42 %

36 %

Preferred stock dividends

–

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$ 12,761

$ 9,016

EARNINGS PER SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS:

Basic

$ 4.47

$ 3.24

Diluted

$ 4.38

$ 3.15

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

2,855

2,783

Diluted

2,914

2,865

(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information

to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this

information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States

dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during

the respective periods. Movements in international currencies relative to the United States dollar during the nine months ended February 28, 2026 compared

with the corresponding prior year period increased our total revenues by 2 percentage points, total operating expenses by 2 percentage points and operating

income by 4 percentage points.

(2)

Provision for income taxes for the nine months ended February 28, 2026 includes the impact of the U.S. One, Big, Beautiful Bill Act, which was signed into

law on July 4, 2025.

Not meaningful

ORACLE CORPORATION

Q3 FISCAL 2026 YEAR TO DATE FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)

Nine Months Ended February 28,

% Increase (Decrease)
in US $

% Increase (Decrease)

in Constant Currency (2)

2026

2025

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

TOTAL REVENUES

$ 48,173

$ –

$ 48,173

$ 41,496

$ –

$ 41,496

16 %

14 %

TOTAL OPERATING EXPENSES

$ 33,700

$ (5,863)

$ 27,837

$ 28,927

$ (5,429)

$ 23,498

17 %

18 %

15 %

17 %

Stock-based compensation (3)

3,608

(3,608)

–

3,374

(3,374)

–

7 %

Amortization of intangible assets (4)

1,239

(1,239)

–

1,763

(1,763)

–

(30 %)

Acquisition related and other

(55)

–

(72)

–

(24 %)

(25 %)

Restructuring

961

(961)

–

220

(220)

–

337 %

325 %

OPERATING INCOME

$ 14,473

$ 5,863

$ 20,336

$ 12,569

$ 5,429

$ 17,998

15 %

13 %

11 %

10 %

OPERATING MARGIN %

30 %

42 %

30 %

43 %

(25) bp.

(116) bp.

(81) bp.

(149) bp.

INCOME TAX EFFECTS (5)

$ 1,402

$ 2,543

$ 3,945

$ 992

$ 2,042

$ 3,034

41 %

30 %

35 %

26 %

NET INCOME

$ 12,783

$ 3,320

$ 16,103

$ 9,016

$ 3,387

$ 12,403

42 %

30 %

36 %

26 %

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$ 12,761

$ 3,320

$ 16,081

$ 9,016

$ 3,387

$ 12,403

42 %

30 %

36 %

26 %

DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO

COMMON SHAREHOLDERS

$ 4.38

$ 5.52

$ 3.15

$ 4.33

39 %

27 %

33 %

24 %

DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING

2,914

–

2,914

2,865

–

2,865

2 %

(1)

consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the

usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

(2)

businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars

are converted into United States dollars at the exchange rates in effect on May 31, 2025, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.

(3)

Stock-based compensation was included in the following GAAP operating expense categories:

Nine Months Ended

February 28, 2026

February 28, 2025

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

Cloud and software

$ 478

$ (478)

$ –

$ 459

$ (459)

$ –

Hardware

(21)

–

(21)

–

Services

158

(158)

–

150

(150)

–

Sales and marketing

574

(574)

–

556

(556)

–

Research and development

2,100

(2,100)

–

1,902

(1,902)

–

General and administrative

277

(277)

–

286

(286)

–

Total stock-based compensation

$ 3,608

$ (3,608)

$ –

$ 3,374

$ (3,374)

$ –

(4)

Estimated future annual amortization expense related to intangible assets as of February 28, 2026 was as follows:

Remainder of fiscal 2026

$ 421

Fiscal 2027

729

Fiscal 2028

692

Fiscal 2029

618

Fiscal 2030

580

Fiscal 2031

375

Thereafter

226

Total intangible assets, net

$ 3,641

(5)

Income tax effects were calculated reflecting an effective GAAP tax rate and non-GAAP tax rate of 9.9% and 19.7%, respectively, in each of the first nine months of fiscal 2026 and 2025. The difference in our GAAP and non-

GAAP tax rates in each of the first nine months of fiscal 2026 and 2025 was primarily due to the net tax effects related to stock-based compensation expense; acquisition related and other items, including the tax effects on

amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity

structure; and, for the first nine months of fiscal 2026, the impact of the U.S. One, Big, Beautiful Bill Act (refer to Appendix A for additional information).

Not meaningful

ORACLE CORPORATION

Q3 FISCAL 2026 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in millions)

February 28,

May 31,

2026

2025

ASSETS

Current Assets:

Cash and cash equivalents

$ 38,455

$ 10,786

Marketable securities

677

417

Trade receivables, net

10,719

8,558

Prepaid expenses and other current assets

5,023

4,818

Total Current Assets

54,874

24,579

Non-Current Assets:

Property, plant and equipment, net

83,617

43,522

Intangible assets, net

3,641

4,587

Goodwill

62,274

62,207

Deferred tax assets

11,360

11,877

Other non-current assets

29,474

21,589

Total Non-Current Assets

190,366

143,782

TOTAL ASSETS

$ 245,240

$ 168,361

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Notes payable and other borrowings, current

$ 9,887

$ 7,271

Accounts payable

9,474

5,113

Accrued compensation and related benefits

1,940

2,243

Deferred revenues

9,881

9,387

Other current liabilities

9,555

8,629

Total Current Liabilities

40,737

32,643

Non-Current Liabilities:

Notes payable and other borrowings, non-current

124,718

85,297

Income taxes payable

11,402

10,269

Operating lease liabilities

18,512

11,536

Other non-current liabilities

10,820

7,647

Total Non-Current Liabilities

165,452

114,749

Stockholders’ Equity

39,051

20,969

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$ 245,240

$ 168,361

ORACLE CORPORATION

Q3 FISCAL 2026 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)

Nine Months Ended February 28,

2026

2025

Cash Flows From Operating Activities:

Net income

$ 12,783

$ 9,016

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

5,208

2,715

Amortization of intangible assets

1,239

1,763

Deferred income taxes

(295)

(1,097)

Stock-based compensation

3,608

3,374

Gains from investments and other, net

(2,149)

422

Changes in operating assets and liabilities:

Increase in trade receivables, net

(2,201)

(312)

Decrease in prepaid expenses and other assets

1,386

603

Decrease in accounts payable and other liabilities

(821)

(633)

Decrease in income taxes payable

(1,651)

(1,222)

Increase in deferred revenues

250

Net cash provided by operating activities

17,357

14,664

Cash Flows From Investing Activities:

Purchases of marketable securities and other investments

(1,663)

(838)

Proceeds from sales and maturities of marketable securities and other investments

4,857

444

Capital expenditures

(39,170)

(12,135)

Net cash used for investing activities

(35,976)

(12,529)

Cash Flows From Financing Activities:

Proceeds from issuances of common stock

1,317

520

Payments for repurchases of common stock

(95)

(450)

Shares repurchased for tax withholdings upon vesting of restricted stock-based awards

(111)

(900)

Proceeds from issuances of mandatory convertible preferred stock, net of issuance costs

4,954

–

Payments of dividends to stockholders

(4,285)

(3,340)

Proceeds from (repayments of) commercial paper and other short-term financing, net

2,279

(396)

Proceeds from issuances of senior notes, term loan credit agreements and other borrowings, net of issuance costs

44,544

19,548

Repayments of senior notes, term loan credit agreements and other borrowings

(2,193)

(9,771)

Other financing activities, net

(215)

(299)

Net cash provided by financing activities

46,195

4,912

Effect of exchange rate changes on cash and cash equivalents

(95)

Net increase in cash and cash equivalents

27,669

6,952

Cash and cash equivalents at beginning of period

10,786

10,454

Cash and cash equivalents at end of period

$ 38,455

$ 17,406

ORACLE CORPORATION
Q3 FISCAL 2026 FINANCIAL RESULTS
FREE CASH FLOW – TRAILING FOUR-QUARTERS (1)
($ in millions)

Fiscal 2025

Fiscal 2026

GAAP Operating Cash Flow

$ 19,126

$ 20,287

$ 20,745

$ 20,821

$ 21,534

$ 22,296

$ 23,514

‌

Capital Expenditures

(7,855)

(10,745)

(14,933)

(21,215)

(27,414)

(35,477)

(48,250)

Free Cash Flow

$ 11,271

$ 9,542

$ 5,812

$ (394)

$ (5,880)

$ (13,181)

$ (24,736)

Operating Cash Flow % Growth over prior year

8 %

19 %

14 %

12 %

13 %

10 %

13 %

Free Cash Flow % Growth over prior year

19 %

(6 %)

(53 %)

(103 %)

(152 %)

(238 %)

(526 %)

GAAP Net Income

$ 10,976

$ 11,624

$ 12,160

$ 12,443

$ 12,441

$ 15,425

$ 16,210

Operating Cash Flow as a % of Net Income

174 %

175 %

171 %

167 %

173 %

145 %

Free Cash Flow as a % of Net Income

103 %

82 %

48 %

(3 %)

(47 %)

(85 %)

(153 %)

(1)

To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows on a trailing four-quarter basis to analyze cash flow generated from

operations. We believe free cash flow is also useful as one of the bases for comparing our performance with our competitors. The presentation of non-GAAP free cash flow is not meant

to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from operating activities as a measure of liquidity.

ORACLE CORPORATION

Q3 FISCAL 2026 FINANCIAL RESULTS
SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1)
($ in millions)

Fiscal 2025

Fiscal 2026

TOTAL

REVENUES BY OFFERINGS

Cloud

$ 5,623

$ 5,937

$ 6,210

$ 6,737

$ 24,506

$ 7,186

$ 7,977

$ 8,914

$ 24,076

Software license

870

1,195

1,129

2,007

5,201

766

939

1,150

2,856

Software support

4,896

4,869

4,797

4,961

19,523

4,955

4,938

4,969

14,861

Software

5,766

6,064

5,926

6,968

24,724

5,721

5,877

6,119

17,717

Hardware

655

728

703

850

2,936

670

776

714

2,160

Services

1,263

1,330

1,291

1,348

5,233

1,349

1,428

1,443

4,220

Total revenues

$ 13,307

$ 14,059

$ 14,130

$ 15,903

$ 57,399

$ 14,926

$ 16,058

$ 17,190

$ 48,173

AS REPORTED REVENUE GROWTH RATES

Cloud

21 %

24 %

23 %

27 %

24 %

28 %

34 %

44 %

35 %

Software license

7 %

1 %

(10 %)

9 %

2 %

(12 %)

(21 %)

2 %

(11 %)

Software support

0 %

(2 %)

1 %

0 %

1 %

4 %

2 %

Software

1 %

0 %

(4 %)

3 %

0 %

(1 %)

(3 %)

3 %

0 %

Hardware

(8 %)

(4 %)

(7 %)

1 %

(4 %)

2 %

7 %

2 %

4 %

Services

(9 %)

(3 %)

(1 %)

(2 %)

(4 %)

7 %

12 %

9 %

Total revenues

7 %

9 %

6 %

11 %

8 %

12 %

14 %

22 %

16 %

CONSTANT CURRENCY REVENUE GROWTH RATES (2)

Cloud

22 %

24 %

25 %

27 %

24 %

27 %

33 %

41 %

34 %

Software license

8 %

3 %

(8 %)

8 %

3 %

(13 %)

(23 %)

(2 %)

(13 %)

Software support

0 %

(1 %)

0 %

Software

1 %

0 %

(2 %)

2 %

1 %

(2 %)

(5 %)

(1 %)

(3 %)

Hardware

(8 %)

(3 %)

(5 %)

0 %

(4 %)

1 %

5 %

(2 %)

1 %

Services

(8 %)

(3 %)

1 %

(2 %)

(3 %)

5 %

6 %

8 %

7 %

Total revenues

8 %

9 %

8 %

11 %

9 %

11 %

13 %

18 %

14 %

CLOUD REVENUES BY OFFERINGS

Cloud applications

$ 3,469

$ 3,503

$ 3,558

$ 3,742

$ 14,272

$ 3,839

$ 3,898

$ 4,026

$ 11,762

Cloud infrastructure

2,154

2,434

2,652

2,995

10,234

3,347

4,079

4,888

12,314

Total cloud revenues

$ 5,623

$ 5,937

$ 6,210

$ 6,737

$ 24,506

$ 7,186

$ 7,977

$ 8,914

$ 24,076

AS REPORTED REVENUE GROWTH RATES

Cloud applications

10 %

9 %

12 %

10 %

11 %

13 %

12 %

Cloud infrastructure

45 %

52 %

49 %

52 %

50 %

55 %

68 %

84 %

70 %

Total cloud revenues

21 %

24 %

23 %

27 %

24 %

28 %

34 %

44 %

35 %

CONSTANT CURRENCY REVENUE GROWTH RATES (2)

Cloud applications

10 %

11 %

10 %

11 %

10 %

Cloud infrastructure

46 %

52 %

51 %

52 %

51 %

54 %

66 %

81 %

68 %

Total cloud revenues

22 %

24 %

25 %

27 %

24 %

27 %

33 %

41 %

34 %

GEOGRAPHIC REVENUES

Americas

$ 8,372

$ 8,933

$ 9,000

$ 10,034

$ 36,339

$ 9,662

$ 10,467

$ 11,361

$ 31,490

Europe/Middle East/Africa

3,228

3,381

3,421

3,996

14,025

3,481

3,760

3,964

11,204

Asia Pacific

1,707

1,745

1,709

1,873

7,035

1,783

1,831

1,865

5,479

Total revenues

$ 13,307

$ 14,059

$ 14,130

$ 15,903

$ 57,399

$ 14,926

$ 16,058

$ 17,190

$ 48,173

(1)

The sum of the quarterly information presented may vary from the year-to-date information presented due to rounding.

(2)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a

framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative

prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2025

and 2024 for the fiscal 2026 and fiscal 2025 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods.

APPENDIX A

ORACLE CORPORATION
Q3 FISCAL 2026 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects related to each of the below items except for the impact of the U.S. One, Big, Beautiful Bill Act:

• Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses, income tax effects and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.

• Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses, income tax effects and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.

• Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses, income tax effects and net income measures. We incurred expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses consisted of personnel-related costs for transitional and certain other employees, certain business combination adjustments including certain adjustments after the measurement period has ended, and certain other operating items, net. Restructuring expenses consisted of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. Although acquisition related and other expenses and restructuring expenses may diminish over time with respect to past acquisitions and/or strategic initiatives, we generally will incur certain of these expenses in connection with any future acquisitions and/or strategic initiatives.

• Impact of the U.S. One, Big, Beautiful Bill Act (OBBBA): OBBBA was signed into law on July 4, 2025. We recorded a net tax expense of $958 million during the first quarter of fiscal 2026, primarily related to the remeasurement of a deferred tax liability previously recorded during fiscal 2021, as part of the partial realignment of our legal entity structure. We have excluded the impact of this charge from our non-GAAP income taxes and net income measures in the first nine months of fiscal 2026. We believe making these adjustments provides insight to our operating performance and comparability to past operating results.

SOURCE Oracle

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