SAN FRANCISCO, March 10 (Xinhua) -- U.S. 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.
Oracle said the total revenue for the quarter reached 17.2 billion U.S. dollars, up 22 percent year over year, while cloud revenue rose 44 percent to 8.9 billion dollars.
Net income under generally accepted accounting principles (GAAP) was 3.7 billion dollars, with earnings per share of 1.27 dollars, up 24 percent from the same period last year. On a non-GAAP basis, net income reached 5.2 billion dollars, with earnings per share of 1.79 dollars, up 21 percent year over year.
Revenue from cloud infrastructure services reached 4.9 billion dollars, representing an 84 percent increase year over year. Revenue from cloud applications totaled 4 billion dollars, up 13 percent.
Oracle said its remaining performance obligations reached 553 billion dollars, up 325 percent 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 23.5 billion dollars, up 13 percent 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) offerings while reducing costs.
Oracle expects fourth-quarter revenue to grow between 19 percent and 21 percent, while cloud revenue is projected to increase between 46 percent and 50 percent.
For fiscal year 2026, Oracle reaffirmed its revenue forecast of 67 billion dollars and capital expenditure of 50 billion dollars. The company raised its revenue outlook for fiscal year 2027 to 90 billion dollars. ■