ORCL US S&P 500Russell 1000 Earnings call

Oracle Corporation (ORCL) · Q3 2026 results and valuation

Share price: $128.38 · 2026-11-11

Oracle Corporation provides enterprise applications, infrastructure, and database software that incorporate artificial intelligence technologies. The company offers these products through cloud-based, on-premise, and hybrid deployment models to a global customer base of businesses, government agencies, and educational institutions. Source: 10-K annual report (2026-06-22)

Results Q3 2026 vs Q2 2026 · previous quarter · fiscal Q1 2027 · published 10 Sep 2026 and 10 Jun 2026

Net income up 13.3% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.

1 · Numbers

+13.3%

Net income vs Q2 2026

Outlook given

Net income 4.76B vs 4.20B

Revenue +0.8%

Why Net income rose because non-GAAP operating income increased 31% due to strong revenue progression boosted by operating leverage and improved profit margins from standardized automation and efficient business processes.

2 · How management spoke

Typical

Less upbeat than 51% of company calls

Answers to analysts: restrained, in line with the script.

Similar to last call.

3 · What stood out

Oracle upgraded its full-year guidance to at least $90 billion in total revenues due to strong execution and acceleration in Q1.

Valuation

Is Oracle Corporation undervalued?

Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2026-05-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 10.0% growth a year (3-year revenue growth), the model's fair value is $140.09 a share — the stock trades 8% below it. Today's price assumes 8.2% growth a year.

Current price

$128.38

close of 2026-11-11

Market implies growth of i

+8.2% for 10 yrs

Fair value / share

$140.09

Buy below

$105.07

Price vs fair value

Undervalued 8%

Price vs buy-below price

Overvalued 22%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

Oracle upgraded its full-year guidance to at least $90 billion in total revenues due to strong execution and acceleration seen in Q1.
Key theme

Oracle expects growth in cloud revenues in US dollars of between 65% to 71% for the upcoming period.

Source quote
“Of that, we would expect growth in cloud revenues in US dollars of between 65% to 71%.”
Figure

Total revenue reached a record $19.3 billion, up 30% year over year in US dollars.

Source quote
“Total revenue was a record $19.3 billion, up 30% year over year in US dollars.”
Figure

Cloud infrastructure revenue reached $7.4 billion in Q1, a 121% increase, reflecting growth in the company's primary infrastructure segment.

Source quote
“Cloud infrastructure revenue for Q1 was $7.4 billion, up a 121%.”
Figure

Multi cloud database revenue grew 353% year over year and multi cloud customers grew 180% year over year, highlighting significant growth in the multi cloud segment.

Source quote
“Multi cloud database revenue grew 353% year over year, and multi cloud customers grew 180% year over year.”

3 more

Figure

ORCL achieved record cash flow from operations of $23 billion in Q1 due to strong demand and the collection of customer prepayments.

Source quote
“We drove record cash flow from operations of $23 billion in Q1, again reflecting our strong execution against a backdrop of strong demand as well as collection of customer prepayments.”
Guidance

Oracle anticipates $90 billion to $95 billion in CapEx for the full year with not more than $70 billion in net cash CapEx.
Figure

The SaaS business grew 10% and Fusion grew 14%, highlighting the growth of the company's software-as-a-service offerings.

Source quote
“In total, our SaaS business grew 10% with Fusion growing at 14%.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q3 2026. Ring: Q2 2026.

Prepared remarks Typical (was typical)

Answers to analysts Restrained (was restrained)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“Companies had been able to increase their profit margins because end to end automation was standardized and efficient business processes proved to be much more effective than 1 off custom...”

“Lastly, our growth in operating income, also on a trailing 12-month basis, shows a similar strong acceleration from 16% to 21% between Q4 and Q1.”

“Now to our balance sheet and cash flows, We drove record cash flow from operations of $23 billion in Q1, again reflecting our strong execution against a backdrop of strong...”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-08-31)

Metric	Q3 2026period end 2026-08-31	Q2 2026period end 2026-05-31	Change
Revenue	19.34B	19.18B	+0.8%
Operating income	6.73B	6.13B	+9.7%
Net income	4.76B	4.20B	+13.3%
EPS	1.56	1.45	+7.6%
P/E today 18.2	23.4	38.7	−15.3

Topics

Most discussed now

Reflecting strong execution as Oracle brought record levels of new megawatt capacity online supported by a continued strong demand…
Q1 was another record quarter driven by strength in both Oracle's cloud infrastructure and cloud apps businesses.
As such, Oracle's decades of experience and expertise running business processes across every industry in every geography for organizations…
A process, exactly as the system expects, AI agents can perform tasks using the organization's established workflows and business rules.
Oracle's ability to operate a large multi tenant fleet remains a significant advantage.

Faded since Q2 2026

Dropped I believe that the most valuable transformational change sits at the juxtaposition of the physical and virtual world across business...
Dropped Oracle architects across data center design, power distribution, data hall layout, and networking to deliver the most efficient and the...
Dropped To support its capital investments program, Oracle expects to raise around $40 billion in debt and equity in its fiscal...
Dropped From a funding standpoint, what is happening here is that these structures are enabling us to have a lower cash...

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-11-04 Other events · SEC 8-K
2026-10-28 Regulation FD disclosure · SEC 8-K
2026-09-14 Other events · SEC 8-K
On September 12, 2026, Oracle announced that Executive Chair Larry Ellison cancelled his 10b5-1 plan to sell stock, with no shares sold under the plan prior to termination.
2026-09-10 Results of operations; Other events · SEC 8-K
Oracle reported Q1 total revenues of $19.3 billion, up 30% year-over-year, with cloud revenues reaching $11.6 billion and GAAP earnings per share increasing 55% to $1.56.
2026-06-10 Results of operations; Other events · SEC 8-K
Oracle reported Q4 revenue of $19.2 billion, up 21% year-over-year, and fiscal year 2026 total revenue of $67.4 billion, up 17% year-over-year.
2026-05-12 Director or officer change; Regulation FD disclosure · SEC 8-K
Oracle appointed Dr. Tomislav Mihaljevic to its Board of Directors on May 12, 2026, increasing the total number of board members to 13.
2026-04-06 Director or officer change; Regulation FD disclosure · SEC 8-K
Oracle appointed Hilary Maxson as Chief Financial Officer on April 6, 2026, with a $950,000 base salary and an equity grant with an intended value of $26 million.
2026-03-10 Results of operations; Other events · SEC 8-K
Oracle reported total revenue of $17.2 billion, up 22% in USD, and cloud revenue of $8.9 billion, up 44% in USD, for the fiscal third quarter ended February 28, 2026.

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-19.

Cash & runway

Cash & equivalents

$36.37B

2026-08-31

Short-term investments

$708.0M

total $37.08B

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: +5.0% YoY.

Quarter	Shares
Q4 2024	2.79B
Q1 2025	2.80B
Q3 2025	2.83B
Q4 2025	2.86B
Q1 2026	2.87B
Q3 2026	2.97B

Shares outstanding: 3.02B (2026-09-07)

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. 47 filings parsed.

Sold by insiders

622.7K shares

$113.2M · 27 transactions

Bought by insiders

25.0K shares

$3.5M · 1 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

fiscal 28 or beyond

impact of new RPO on CapEx or revenues

Source quote
“Also, that new RPO will not impact our CapEx or revenues until fiscal 28 or beyond.”
remainder of fiscal 27

acceleration of RPO conversion into revenues

Source quote
“And we would expect acceleration to continue in the remainder of fiscal 27 as we convert more RPO into revenues.”
next 36 months

conversion of RPO into sales

Source quote
“We now expect around half of our RPO to convert into sales over the next 36 months.”
full year

CapEx forecast

Source quote
“We continue to anticipate $90 billion to $95 billion in CapEx for the full year with not more than $70 billion in net cash CapEx.”
October

unveil a new agentic AI accelerator

Source quote
“At AI World in October, we will unveil a new agentic AI accelerator poised to redefine how customers deplo”