Oracle Cloud Explodes: Q3 Revenue $8.9B

Accelerating the digital transformation of businesses, Oracle has released its results for the third quarter of fiscal year 2026. The company reports an increase in its revenue and profitability, mainly due to strong cloud growth and increasing demand for infrastructures related to artificial intelligence.

Oracle is seeing an increase in its sales and profits

In a report published on Tuesday, Oracle shows a significant increase in its quarterly revenue. The group reported that it generated revenue of $17.2 billion, up 22% year-on-year, or 18% at constant exchange rates.

At the same time, financial results show improvement in several profitability indicators. Both net profit and earnings per share increased, confirming the strength of the group’s activities in the enterprise technology sector.

The main financial indicators published by the company are as follows:

• Total revenue: $17.2 billion, up 22% (18% at constant exchange rates)
• Cloud revenue: $8.9 billion, strong growth of 44% (41% at constant exchange rates)
• Software revenue: $6.1 billion, up 3% but down 1% at constant exchange rates
• Operating income: $5.5 billion (GAAP) and $7.4 billion (non-GAAP), the latter up 19%
• Net income: $3.7 billion (GAAP) and $5.2 billion (non-GAAP), up 23%
• Earnings per share: $1.27 (GAAP) and $1.79 (non-GAAP), up 24% and 21%

This data shows that cloud activities are now the main driver of the company’s growth. Oracle shares rose sharply after posting results that beat Wall Street expectations and announcing an increase in revenue forecasts for fiscal 2027. Shares rallied as much as 10% in after-hours trading on Tuesday before paring their gains slightly.

Artificial intelligence is becoming the driving force behind Oracle’s cloud strategy

Much of Oracle’s recent growth has to do with the rise of artificial intelligence. Indeed, the demand for digital infrastructures is constantly growing. Cloud revenue reached $8.9 billion, representing 44% year-over-year growth.

The cloud thus becomes a central pillar of the group’s strategy. Companies are now looking for infrastructures capable of processing huge amounts of data. They also want to support advanced applications related to artificial intelligence.

As a result, Oracle is strengthening its data centers and gradually increasing its computing capacity. The company aims to fulfill the growing number of contracts related to artificial intelligence.

Additionally, AI tools capable of generating code are transforming the software development organization. They enable faster software production. They also make it easier to build SaaS applications while reducing costs.

Larry Ellison, owner, CTO and executive chairman of Oracle, discussed these developments during the earnings call. He explained that AI-based coding tools accelerate software development. stated:

We now have coding tools capable of creating complete software suites, including agent-based solutions, to automate entire ecosystems such as those in healthcare or financial services. This is the approach we are developing at Oracle, and it leads us to believe we can be a disruptive force in this sector.

Financial forecasts confirm sustainable growth

Oracle’s published outlook suggests continued growth in the coming quarters.

For the fourth quarter of fiscal 2026, the company expects total revenue to grow between 19% and 21%. Cloud revenues could grow between 46% and 50%.

At the same time, non-GAAP earnings per share are expected to be between $1.96 and $2.00, representing an estimated growth of between 15% and 17%.

Longer-term, Oracle is maintaining its forecasts for fiscal 2026, with estimated revenue of $67 billion and $50 billion in investments. For fiscal 2027, the company is raising its revenue target to $90 billion.

Finally, the board declared a quarterly dividend of $0.50 per share to be paid on April 24, 2026 to shareholders of record on April 9, 2026.

What does this growth mean for the crypto and blockchain ecosystem?

Oracle’s results illustrate the growing importance of the cloud in its strategy. In the context of the growth of artificial intelligence and accelerating digital transformation, the company’s future growth will largely depend on the development of its cloud infrastructures and, more generally, its ability to meet the technological needs of enterprises. The strengthening of data centers and computing capacities thus becomes a key element for supporting the development of digital services.

In addition, this development could also have an impact on the crypto and blockchain ecosystem. In practice, many Web3 applications and several blockchain networks already rely on cloud infrastructures, especially for hosting nodes, analyzing data on the chain, and more generally supporting the operation of decentralized applications.

In this context, as computing capacity and data centers continue to expand, these infrastructures could gradually facilitate the growth of new blockchain-related use cases. This is especially true for decentralized finance, asset tokenization, and large-scale blockchain data analytics.

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The views, thoughts and opinions expressed in this article are solely those of the author and should not be taken as investment advice. Before making any investment decision, do your own research.