Link to Press Release: [Q3 Earnings](https://s23.q4cdn.com/440135859/files/doc_earnings/2026/q2/earnings-result/2q26-pressrelease-final.pdf)
# The Good:
Net Income of $6.135 billion, up 38% YoY
Remaining Performance Obligations up to $523 billion, crazy if actually realized
Clear Path for Revenue Growth
# The Bad:
$2.668 billion of net income was related to sale of Amphere and the declaration that Oracle will not produce chips and just buy "what customers want"
EPS would have been \~$1.33 without the gain on sale of Amphere ste
Remaining Performance Obligations (RPO) growth outpaced revenue growth and is highly sensitive to cancelation risk
# The Ugly:
Free Cash Flow is Tanking \[ $11.27b, $9.54B, $5.81, ($0.394), ($5.88), ($13,181), \] With no sign of reversing
Current Liabilities > Current Assets ($37.795b vs $34.366b), when FCF is tanking
Their actual Software Business shrank compared to last year (software license revenue down 21%)
# The Takeaway:
This was not a strong report and $ORCL is heavily exposed if one believes in "AI Bubble" theories
No position, Would buy at 20x forward earnings, so \~$150 per share. NFA