Oracle Guides Q3 Revenue +16–21% and Cloud Growth of 40–44%
Oracle projects fiscal Q3 revenues to grow 16-18% in constant currency and 19-21% in USD, with consensus at $16.89 billion year-over-year. Management expects non-GAAP EPS of $1.70 (15.65% growth) and cloud revenue growth of 40-44%, supported by a record $523.3 billion RPO backlog.
1. Q3 Revenue and EPS Guidance
Oracle anticipates third-quarter fiscal 2026 revenues to rise 16–18% in constant currency and 19–21% in U.S. dollars, with the consensus estimate set at $16.89 billion. Non-GAAP earnings per share are forecast at $1.70, implying a 15.65% year-over-year increase.
2. Cloud Momentum and Backlog
Management forecasts cloud revenues to expand 40–44% year over year, building on a 68% increase in Oracle Cloud Infrastructure in the prior quarter. Remaining performance obligations reached a record $523.3 billion, up 433% from a year earlier, underpinning future revenue visibility.
3. Financial Health and Risks
Oracle’s debt has climbed 40% to $124 billion and free cash flow swung negative by up to $13.2 billion as capex reached $12 billion. Premium valuation, intensifying competition from AWS, Microsoft Azure and Google Cloud, and ongoing legal suits over AI disclosures present near-term headwinds.