In our Q3 earnings call on March 10th 2026, I talked about 2 segments of our business – our Multicloud Database, and AI infrastructure. Both are growing extremely quickly – Multicloud Database revenue grew 531% YoY. AI infrastructure revenue grew 243% YoY. Both also have demand that exceeds supply and a clear execution plan from Oracle that will rapidly turn that demand into profitable recurring revenue.
Multicloud Database: Oracle Database Services Across Azure, Google Cloud, and AWS
Oracle Database has run on any hardware and operating system for decades. Oracle Database cloud services, up until recently, were only available in a single cloud – OCI. We created our Multicloud partnerships with first Microsoft, then Google, and finally Amazon to bring the best database platform to all clouds. Those partnerships unlock an enormous backlog of demand – our database customers who want to use our database in other clouds. This quarter we achieved an important milestone – we have global region coverage in all our partner clouds. We now have 33 regions live with Microsoft and 14 live with Google. We delivered significant growth with AWS, beginning Q3 with 2 AWS regions live, exiting Q3 with 8 AWS regions live, and we will exit Q4 with 22 AWS regions live.
AI Is Accelerating Multicloud Database Adoption
AI is also accelerating the adoption of our database cloud services. The rapid improvements in model coding skills and agentic abilities pushes customers to move their most valuable data into our cloud services. They need access to the latest AI features to support vector embeddings, MCP server access, and advanced security controls. Customers also need their data to be collocated with their agents themselves, and our multicloud database makes that easy.
Our multicloud architecture brings the best of Oracle Cloud into our partner regions, including our optimized hardware and network design. This ensures that we will rapidly turn billions of pipeline into highly profitable database service revenue.
AI Infrastructure: From RPO to Delivered Capacity
Demand for AI infrastructure, both GPU and CPU, continues to exceed supply. This is directly visible in our $553B RPO. I want to share a model for how that RPO turns into profitable recurring revenue, as well as some operational metrics that are early indicators of our progress.
AI infrastructure begins with datacenters and power generation. Through our partners, we have secured > 10GW of power and datacenter capacity coming online over the next 3 years. Those infrastructure investments also need funding, and >90% of that capacity is fully funded, with the remainder planned to finish this month.
Once the datacenter is secured, several things must come together. The datacenter and onsite power generation has to be constructed. Compute, networking and storage has to be designed, manufactured, delivered, and installed. All the capacity inside the datacenter also has to be funded.
We continue to innovate across each of those steps. We optimize our datacenter construction through standardized designs. Our supply chain has improved with more suppliers and deeper relationships. We have tripled our manufacturing sites and increased rack output by 4x, all in the last year. We have scaled our installation processes to enable multiple phases of delivery in parallel. Time from rack delivery to revenue has reduced by 60% in the past several months.
We also continue to innovate on our business models. On our last earnings call I shared multiple ideas for how we can incrementally grow our AI infrastructure without Oracle raising more debt or issuing equity. We have signed >$29B of contracts since then, with multiple customers, using that new model. A combination of Bring Your Own Hardware and up front customer payments enable us to continue expanding without any negative cash flow for Oracle. Of course, this $29B is in addition to other deals we signed this quarter.
Ultimately, all of this results in capacity delivered to customers and revenue to Oracle. In Q3, we delivered >400MW to customers. 90% of that committed capacity was delivered on or ahead of schedule, as we’ve consistently done over several quarters. This is why customers continue to choose Oracle.
Execution and Economics: Faster Delivery, New Commercial Models, and Profitability at Scale
Investing in AI infrastructure is capital intensive, but our operating model is optimized to ensure profitability. Flexible infrastructure design, high utilization, and rapid handover combined with diversified customers creates an incredible business. Increased scale spreads our fixed costs over a larger base, increasing profitability. It’s unprecedented to scale a capital intensive business so quickly, while also increasing profitability. Looking at the AI capacity we delivered in Q3, our gross margin for that remains above our 30% guidance at 32%. Combine that with our other segments of OCI, which have much higher margins, like our database services, and you can see why Oracle is growing so quickly and profitably. Our numbers speak for themselves – we are over delivering on FY26 revenue and earnings and we are confidently raising our FY27 forecast for accelerating revenue and earnings growth. This is made possible by Oracle’s transition from a predominantly seasonal license business into a highly predictable, recurring revenue cloud business.
Demand for AI and advanced compute will continue to expand broadly across the economy. There will be many successful models, agentic platforms, and businesses that emerge. We support hundreds of the most advanced AI customers today, and more continually want to work with us. We build infrastructure that is flexible, fungible, and can support the smallest workloads up to the largest. We continually offer the latest in accelerators, from the latest Nvidia and AMD options to emerging designs from companies like Cerebras and Positron. Altogether, we are confident that the investments we make now in datacenters, compute capacity, and customer relationships will only grow more valuable with time.