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Oracle recently released its third-quarter financial report. The report shows that the rapid popularity of AI programming tools is significantly improving its development efficiency, and the company expects to avoid the "SaaS crisis" that could trouble smaller competitors.
Co-CEO Mike Sicilia said that AI programming tools are not just a trend but a core part of the company's competitiveness. Currently, Oracle is using AI to extensively restructure existing application suites and quickly launch new SaaS products.
Thanks to AI coding tools, Oracle can now provide complete solutions to customers with a more streamlined engineering team, including three new customer experience (CX) applications and a website generator recently launched. Sicilia pointed out that "niche SaaS vendors" relying on piecing together scattered AI features may be eliminated in the competition, while Oracle's deep-integrated AI agent systems are hard to replace.
This quarter's revenue reached $17.2 billion, an increase of 22% year-over-year. Among them, AI infrastructure revenue was $4.9 billion, up 84%; cloud business revenue composed of IaaS and SaaS grew by 44% to $8.9 billion. Co-CEO Clay Magers revealed that the company achieved continuous expansion of its data centers without generating negative cash flow through "hardware bring-your-own" and "prepaid deposit" transaction models.
Despite strong business growth, there are market rumors that Oracle may still lay off employees to ensure sufficient funds to support its large-scale cloud infrastructure. Oracle currently has $55.3 billion in remaining performance obligations (RPO), most of which are related to AI infrastructure.
Key Points
📈 Exceeded Expectations: Oracle raised its revenue forecast for fiscal year 2026, aiming for the $90 billion milestone.
🤖 AI-Driven Transformation: The company is completely transitioning from traditional seasonal software licensing models to a high-predictability recurring cloud business model.
⚔️ Big Company Defense: Oracle believes that large integrated platforms are more resilient in the AI era, capable of withstanding challenges from single-function SaaS software.
💰 Immensely Strong Order Backlog: Over $50 billion in unprocessed orders provides strong support for its rapid growth in the coming years.