Author: 137Labs

On March 10, 2026, Oracle released its financial report for the third quarter of fiscal year 2026. After the announcement of the report, the company's stock price rose nearly 10% in after-hours and the following day’s trading, becoming one of the most watched earnings reports in the tech industry recently.

On the surface, this is just a quarterly performance that surpassed market expectations. However, viewed from a longer-term industrial logic, this financial report reveals not only performance growth but also a corporate strategic transformation that is underway: a company known for database software for decades is attempting to redefine its role in the AI era, shifting from a traditional enterprise software vendor to a provider of AI computing infrastructure.

Understanding this financial report requires looking at it from three levels: financial data, industry trends, and corporate strategy.

1. Financial Overview: AI Demand Drives Performance Exceeding Expectations

According to publicly disclosed data, Oracle achieved revenue of approximately $17.2 billion in the third quarter of fiscal year 2026, a year-on-year increase of about 22%, clearly surpassing market expectations. The adjusted earnings per share were $1.79, a year-on-year increase of about 21%.

In terms of revenue structure, the cloud business has become the most important growth driver for the company. Oracle's cloud service revenue reached approximately $8.9 billion, a year-on-year increase of 44%, accounting for more than half of the company’s total revenue.

The most significant growth has come from Oracle Cloud Infrastructure (OCI). OCI revenue grew by 84% year on year, reaching approximately $4.9 billion, becoming the company’s fastest-growing segment.

At the same time, the company’s future order reserves have seen explosive growth. The remaining performance obligations (RPO) disclosed by Oracle reached $553 billion, a year-on-year increase of 325%, indicating that the company has locked in a large amount of long-term contract revenue for the coming years.

The management also raised long-term growth expectations in the report, forecasting that the company's revenue could reach approximately $90 billion by fiscal year 2027.

These figures suggest that Oracle is not only performing strongly in the short term but has also established a high level of certainty in business growth over the coming years.

2. Cloud Business Becomes the New Growth Engine

Looking back at Oracle's business structure over the past decade, it is clear that the company has undergone a significant change in revenue structure.

For a long time, Oracle's core business was database software and enterprise application software. Large amounts of data systems in banks, telecommunications, governments, and large enterprises operate on Oracle databases, which has made the company one of the most stable vendors in the global enterprise software field.

However, with the rise of cloud computing, traditional software licensing models have gradually been replaced by subscription-based cloud services. Oracle also began building its own cloud platform, Oracle Cloud Infrastructure, in the mid-2010s.

In the initial years, Oracle's cloud business developed relatively slowly as the market was already occupied by platforms such as Amazon AWS, Microsoft Azure, and Google Cloud.

But in recent years, the situation has begun to change. As enterprises gradually migrate their databases to the cloud, Oracle has started to leverage its customer base in the database market to drive cloud business growth. If an enterprise is already using Oracle databases, migrating the system to Oracle Cloud is often more convenient.

Meanwhile, the explosion of AI industries has also changed the demand structure for cloud computing. Cloud platforms are no longer just software infrastructures for running websites or enterprise applications but are gradually becoming AI computing platforms that provide GPU computing power, data centers, and high-performance networks.

Oracle has found new growth opportunities in this trend.

3. Explosion of AI Computing Demand Changes the Cloud Computing Landscape

The rapid development of the AI industry has created unprecedented demand for computing resources.

Large language models, autonomous driving models, and various generative AI applications all require massive computing power for training and inference. Training a large model typically requires thousands or even tens of thousands of GPUs working together, and these resources are often provided by cloud data centers.

As a result, the cloud computing industry is undergoing a structural change: cloud platforms are not only software running environments but also AI computing infrastructures.

Oracle's OCI business has achieved rapid growth in this field. OCI not only offers traditional cloud services but also provides GPU computing clusters, high-performance networks, and AI training platforms, making it an important infrastructure for AI companies to train models.

Some AI companies choose Oracle Cloud for reasons including the higher availability of GPU resources, strong network performance, and competitive costs. This has allowed Oracle to gradually establish its position in the AI computing market.

The data in the financial report also reflects this trend. The 84% growth rate of the OCI business far exceeds that of traditional software businesses and is significantly above the average growth level in the global cloud market.

4. Transformation from a Database Company to an AI Infrastructure Company

From a longer-term perspective, Oracle is undergoing a change in corporate positioning.

For decades, Oracle's most important product has been databases. Many enterprises' data storage, transaction systems, and ERP systems heavily rely on Oracle database technology.

However, in the AI era, data and computing power are merging deeply. Enterprises not only need to store data but also need to leverage this data to train models and build intelligent applications.

Oracle aims to utilize its advantages to establish a new technological system combining databases, cloud infrastructure, and AI computing power.

The logic behind this strategy is very clear. If a company's data is already stored in Oracle databases, and if this data is directly used for AI training and analysis on Oracle Cloud, then the enterprise can complete data management, model training, and application deployment on the same platform.

From a technological pathway perspective, this is essentially a transformation from being a "database software company" to a "data and AI infrastructure platform."

5. Strategic Bets Behind Massive Investments

However, this transformation does not come without a cost.

To meet the demand for AI computing power, Oracle is constructing data centers on a large scale and purchasing GPU equipment. The company expects capital expenditures for fiscal year 2026 to reach approximately $50 billion, aimed at expanding AI data centers and computing infrastructure.

This scale of investment is unprecedented in Oracle's history. To raise funds, the company also plans to raise about $45 billion to $50 billion through bond and stock financing.

The risks associated with massive investments have drawn market attention. Some investors are concerned that if AI demand growth falls short of expectations, these data centers may not quickly yield sufficient returns.

In fact, prior to the release of the financial report, Oracle's stock price had dropped significantly due to concerns over the size of its investments, reflecting market worries about its capital expenditure plans.

Therefore, Oracle's current strategy resembles a "high investment, high return" long-term bet.

6. Changes in Cloud Computing Competition Landscape

In the global cloud computing market, Oracle remains a follower.

For a long time, the cloud market has been dominated by three giants: Amazon AWS, Microsoft Azure, and Google Cloud. These three companies occupy over 60% of the global cloud infrastructure market.

Oracle entered the cloud market later, thus holding a relatively small overall market share.

However, the demand for AI computing power may bring new changes to the industry landscape. Traditional cloud services emphasize software ecosystems and developer tools, while AI computing power relies more on GPU resources, data center scale, and high-performance networks.

New players still have opportunities to gain market space in this area.

Oracle is attempting to expand its cloud infrastructure business during this window of opportunity.

7. Future Outlook: Can Oracle Become an AI Computing Giant?

From the financial report of 2026, it appears that Oracle's transformation is already showing results. Cloud business is growing rapidly, order reserves are at an all-time high, and AI demand has become an important driver of the company's performance growth.

However, this strategy is still in its early stages.

In the coming years, Oracle needs to prove three things: first, that the demand for AI computing power can continue to grow; second, that the company can establish a stable customer base in the cloud market; and third, that massive capital investments can eventually translate into long-term profitability.

If these conditions can be fulfilled, Oracle may transform from a traditional enterprise software vendor into a significant player in global AI infrastructure.

In the age of artificial intelligence, data, computing power, and cloud platforms are becoming the new technological infrastructure. Oracle is attempting to reshape its business model by leveraging this trend.

The financial report of 2026 may just be the beginning of this transformation story.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。