Oracle
Oracle Corporation, founded in 1977 by Larry Ellison, Bob Miner, and Ed Oates, is a multinational technology company headquartered in Austin, Texas.
Profile
Oracle sells database software, cloud infrastructure, and enterprise applications, with a growing focus on AI data center services.
Oracle Corporation, founded in 1977 by Larry Ellison, Bob Miner, and Ed Oates, is a multinational technology company headquartered in Austin, Texas. It offers a broad portfolio of infrastructure and software products, including Oracle Database, Oracle Cloud Infrastructure (OCI), Oracle Fusion Cloud ERP, NetSuite, and a range of data and analytics tools such as Oracle Graph, Oracle NoSQL, Oracle Endeca, Oracle Analytics, Oracle Coherence, Oracle Data Marketplace, Oracle Data Science Service, and Oracle Exadata Cloud Service. In its fiscal third quarter ended February 28, 2026, Oracle reported total revenue of $17.2 billion, up 22% year-over-year, with cloud revenue (IaaS plus SaaS) reaching $8.9 billion, up 44%.
Cloud infrastructure revenue alone was $4.9 billion, up 84%. The company's remaining performance obligations (RPO) surged to $553 billion, a 325% increase, driven largely by large-scale AI contracts, including a deal with OpenAI worth over $300 billion. Oracle raised its fiscal 2027 revenue forecast to $90 billion.
However, the company is also cutting thousands of jobs as it restructures engineering teams around AI code generation tools, and its stock fell 25% in 2026 through March amid investor concerns about its heavy debt load for AI infrastructure buildout. Oracle employed 162,000 people as of May 2025. The company has announced plans to raise up to $50 billion in debt and equity to fund its AI expansion, and it raised $30 billion in February 2026 through bonds and mandatory convertible preferred stock.
Products by Oracle
- O Oracle Data Science Service Oracle Data Science Service is a cloud-based platform designed for enterprises and data science teams needing end-to-end ML Be the first to review →
- O Oracle Exadata Cloud Service Oracle Exadata Cloud Service is a fully managed database platform combining Oracle's Exadata hardware with cloud automation, designed Be the first to review →
- O Oracle Graph Oracle Graph is an integrated graph database feature within Oracle's converged database, designed for enterprises needing to analyze Be the first to review →
- O Oracle NoSQL Oracle NoSQL is a fully managed cloud database service designed for developers building applications requiring high performance at Be the first to review →
Who buys this
- Large enterprises running mission-critical databases and ERP systems
- Government agencies and public sector organizations
- Mid-market businesses using NetSuite cloud ERP
- AI and cloud-native startups needing GPU-accelerated infrastructure
- Telecommunications and media companies for data management and analytics
Publicly disclosed clients
- Air France-KLM
- Lockheed Martin
- SoftBank Corp.
- Microsoft (Activision Blizzard subsidiary)
- OpenAI
Strengths and what to watch
Strengths
- Massive contracted revenue backlog: RPO of $553 billion as of Q3 FY2026, providing multi-year revenue visibility.
- Dominant position in enterprise database market with Oracle Database and Exadata, generating high-margin software license and support revenue.
- Rapidly growing cloud infrastructure business (IaaS revenue up 84% YoY) fueled by AI demand and partnerships with OpenAI and Meta.
Watch for
- Heavy debt and equity financing for AI data center buildout: Oracle raised $30 billion in February 2026 and plans up to $50 billion total, increasing financial leverage and interest costs.
- Ongoing layoffs: The company cut thousands of jobs in March 2026 as it restructures engineering teams around AI code generation, potentially impacting morale and institutional knowledge.
- Stock price volatility: Oracle's stock fell 25% in 2026 through March amid investor concerns about AI spending returns and competitive pressure from AWS, Azure, and Google Cloud.
Recent moves
Key Information
- Industry
- RDBMs
- Founded
- 1977
- Employees
- 141000
- Headquarters
- Austin, Texas
Frequently Asked Questions
What is Oracle's main business focus in 2026?
Oracle sells database software, cloud infrastructure, and enterprise applications. In 2026, it is heavily focused on AI data center services, with cloud revenue growing 44% year-over-year to $8.9 billion and a massive $553 billion contracted backlog.
How much revenue did Oracle report in its fiscal third quarter of 2026?
Oracle reported total revenue of $17.2 billion for the quarter ended February 28, 2026, up 22% year-over-year. Cloud infrastructure revenue alone reached $4.9 billion, an 84% increase, driven by AI demand and partnerships with OpenAI and Meta.
Why is Oracle raising billions in debt and equity for AI expansion?
Oracle plans to raise up to $50 billion in debt and equity to fund its AI data center buildout. In February 2026, it raised $30 billion through bonds and mandatory convertible preferred stock. This increases financial leverage but supports large-scale AI contracts.
Why is Oracle laying off employees in 2026?
Oracle cut thousands of jobs in March 2026 as it restructures engineering teams around AI code generation tools. The layoffs are part of a shift to automate software development, potentially impacting morale and institutional knowledge while the company ramps AI spending.
What is Oracle's remaining performance obligations backlog and why is it significant?
Oracle's remaining performance obligations surged to $553 billion in Q3 FY2026, a 325% increase. This massive backlog, driven by AI contracts including a deal with OpenAI worth over $300 billion, provides multi-year revenue visibility and signals strong future demand.
How did Oracle's stock perform in 2026 amid its AI investments?
Oracle's stock fell 25% in 2026 through March, despite strong earnings. Investor concerns centered on the heavy debt load for AI infrastructure buildout and competitive pressure from AWS, Azure, and Google Cloud, raising questions about returns on AI spending.
Sources
- investor.oracle.com — Oracle's financial reporting page, including FY2026 Q3 earnings release and historical financials.
- www.oracle.com — Q3 FY2026 earnings details: revenue $17.2B, cloud revenue $8.9B, RPO $553B, guidance for FY2027 $90B.
- www.cnbc.com — CNBC report on Q3 earnings beat, stock jump, and client mentions (Air France-KLM, Lockheed Martin, SoftBank, Activision Blizzard).
- www.cnbc.com — Details on layoffs of thousands of employees in March 2026, stock decline, and debt concerns.
- www.reuters.com — Reuters coverage of Q3 earnings, RPO growth, and commentary from CEO Clay Magouyrk and Larry Ellison.
- www.reuters.com — Oracle's $3 billion investment in Germany and Netherlands for AI cloud infrastructure.
- www.macrotrends.net — Historical annual and quarterly revenue data for Oracle, including FY2025 revenue of $57.4B.