SAN FRANCISCO, United States (US): US software company, Oracle Corporation, on Tuesday reported strong financial results for the third quarter of fiscal year 2026, driven by rapid growth in cloud services and rising demand for artificial intelligence (AI) computing, Xinhua reported.
Oracle said the total revenue for the quarter reached USD17.2 billion (approx. RM67.2 billion), up 22 per cent year over year, while cloud revenue rose 44 per cent to USD8.9 billion (approx. RM34.7 billion).
Net income under generally accepted accounting principles (GAAP) was USD3.7 billion (approx. RM14.4 billion), with earnings per share of USD1.27 (approx. RM4.95), up 24 per cent from the same period last year.
On a non-GAAP basis, net income reached USD5.2 billion (approx. RM20.3 billion), with earnings per share of USD1.79 (approx. RM6.98), up 21 per cent year over year.
Revenue from cloud infrastructure services reached USD4.9 billion (approx. RM19.1 billion), representing an 84 per cent increase year over year. Revenue from cloud applications totaled USD4 billion (approx. RM15.6 billion), up 13 per cent.
Oracle said its remaining performance obligations reached USD553 billion (approx. RM2.16 trillion), up 325 per cent from a year earlier. The company said most of the increase was related to large-scale AI contracts.
Over the past 12 months, operating cash flow was USD23.5 billion (approx. RM91.7 billion), up 13 per cent year on year, it said.
The company also noted that demand for AI cloud computing capacity continues to exceed supply, particularly for AI training and inference workloads.
Oracle said advances in AI-powered code generation are allowing it to accelerate software development and expand its Software as a Service (SaaS) offering while reducing costs.
Oracle expects fourth-quarter revenue to grow between 19 per cent and 21 per cent, while cloud revenue is projected to increase between 46 per cent and 50 per cent.
For fiscal year 2026, Oracle reaffirmed its revenue forecast of USD67 billion (approx. RM261.3 billion) and capital expenditure of USD50 billion (approx. RM195 billion).
The company raised its revenue outlook for fiscal year 2027 to USD90 billion (approx. RM351 billion). — BERNAMA-XINHUA
