Oracle Q3 revenue seen rising 19.7% on Cloud surge

Oracle (NYSE: ORCL) is scheduled to report Q3 fiscal 2026 earnings on Tuesday, March 10, with analysts expecting another quarter of robust cloud-led growth. Analysts forecast revenues of $16.9 billion for the quarter up 19.7% year-on-year, driven by continued momentum in the software maker’s Cloud Services offerings.

Cloud remains the main growth driver. Quarterly cloud revenues are expected to rise 43% to $8.9 billion, accounting for roughly 52% of total group sales. That marks a decisive shift from a decade ago, when Oracle was largely defined by its on-premise database business. As recently as last year, cloud contributed 43% of revenue; analysts now project that by 2030 the share could reach as high as 85%, transforming Oracle into a predominantly recurring, infrastructure-driven business.

Within that mix, infrastructure-as-a-service is emerging as the standout performer. Oracle has positioned its cloud infrastructure as a lower-cost, high-performance alternative for enterprise AI workloads, competing with hyperscale leaders.

Analysts also expect continued strength in the company’s AI-driven backlog expansion, which is expected to support outlook. Remaining performance obligations (RPO), a key gauge of contracted future revenue, are estimated at $541 billion for the quarter, up 315% from a year earlier, reflecting robust AI-related demand from large enterprise customers.

Oracle is stepping up spending on its cloud infrastructure to expand capacity and meet rising demand for AI and enterprise services. Management has increased its fiscal 2026 capital expenditure forecast to about $50 billion. For the third quarter, analysts expect capital spending of $14 billion, up 139% from a year earlier and 16% higher than the prior quarter.

This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.