Oracle Reports Strongest Growth Since 2009 as AI Infrastructure Revenue Surges

Oracle hasn’t posted a quarter like this since 2009. On March 10, Principal Financial Officer Douglas Kehring told analysts that Q3 2026 was the first time in over 15 years that both organic total revenue growth and earnings per share crossed 20% in the same quarter. Total revenue came in at $17.19 billion, above the $16.91 billion analyst estimate compiled by LSEG.

Oracle CEO Clay Magouyrk told analysts on the March 10 call that AI infrastructure revenue grew 243% year over year in fiscal Q3. Oracle's multicloud database business, which runs Oracle Database inside Microsoft Azure, Google Cloud, and Amazon Web Services, grew 531% year over year in the same period. Magouyrk said both segments currently have more customer demand than available supply. Oracle's stock closed at $151.56 on March 10 and climbed roughly 10% in premarket trading on Wednesday, according to Reuters.

Oracle's remaining performance obligations, the total value of work customers have contracted, but Oracle has not yet delivered, reached $553 billion in Q3 2026. That is up 325% from a year earlier, up from $523 billion the prior quarter, and above the $540.37 billion estimate from Visible Alpha analysts. Kehring said on the call that the increase is driven primarily by large-scale AI contracts.

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Oracle raised its fiscal 2027 revenue target to $90 billion on March 10, above the $86.6 billion analyst estimate compiled by LSEG. For the quarter ending May 31, 2026, Oracle projected cloud revenue growth of 46% to 50% in U.S. dollars, total revenue growth of 19% to 21%, and adjusted earnings per share of $1.96 to $2.00, above the $1.94 analyst estimate.

How Oracle Is Building AI Data Center Capacity

Magouyrk confirmed on the March 10 call that Oracle ended Q3 with 33 live Oracle Database regions inside Microsoft Azure and 14 inside Google Cloud. Inside AWS, Oracle started Q3 with two regions, exited with eight, and is targeting 22 by March 31, 2026.

Oracle delivered more than 400 megawatts of data center capacity to customers in Q3, with 90% of committed capacity arriving on or ahead of schedule. Oracle has secured more than 10 gigawatts of total data center and power capacity across the next three years, with over 90% of that funded through Oracle's partners, Magouyrk said. Time from rack delivery to revenue recognition dropped 60% in the past several months, and Oracle tripled its manufacturing sites and increased rack output four times in the past year.

Since Oracle's prior earnings call, the company has signed more than $29 billion in new contracts where customers supply their own hardware or pay upfront. In February 2026, Oracle raised $30 billion through investment-grade bonds and mandatory convertible preferred stock as part of a plan to raise up to $50 billion in calendar year 2026. Kehring said the investor order book was substantially oversubscribed. Gross margin on AI capacity delivered in Q3 held at 32%, above Oracle's 30% guidance floor, with database services on Oracle Cloud Infrastructure carrying gross margins of 60% to 80%, Magouyrk said.

Oracle AI Agents Already Running Inside Fusion Software

Oracle CEO Mike Sicilia confirmed on the March 10 call that more than 1,000 AI agents are already running inside Oracle's Fusion suite, the software Oracle sells to enterprises for managing finance, supply chain, HR, and customer operations. Those agents ship as part of standard quarterly software updates at no additional cost. Oracle's banking software alone carries hundreds of embedded AI agents, Sicilia said.

Oracle's AI Agent Studio, a development environment inside Fusion that lets customers and partners build custom AI agents using any AI model available in Oracle Cloud, has already been released, Sicilia confirmed on the call.

Cloud applications revenue grew 11% in constant currency to an annualized rate of $16.1 billion. Financial management software grew 14%, supply chain and HR products each grew 15%, and industry software covering hospitality, construction, retail, and banking grew 19%.

Oracle Chairman Larry Ellison said on the call: "Thank God we have these coding tools now that allow us to build a comprehensive set of software, agent-based software to automate a complete ecosystem like healthcare, or financial services. That's why we think the SaaS-apocalypse applies to others but not to Oracle."

Oracle confirmed on March 10 that it acquired a 15% equity stake and a board seat in the newly independent TikTok US in late January 2026. Financial results from that investment will appear for the first time in Oracle's Q4 report covering the period through March 31, 2026, recorded as nonoperating income or loss.

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