Clayton Magouyrk on AI strategy
From Oracle Corp. Q3 FY26 Earnings Call | $ORCL | 🔴 WATCH LIVE · · Benzinga
“I don't agree with that at all. I do think that AI tools and their coding capabilities would be a threat if we weren't adopting them, but we are and very rapidly. Oracle is using the best AI coding tools and the best developers not only to accelerate our SaaS business but to deliver solutions that enable entire ecosystems across numerous industries.”
On , Clayton Magouyrk, Chief Executive Officer & Director at Oracle Corporation, spoke about AI strategy during Oracle Corp. Q3 FY26 Earnings Call | $ORCL | 🔴 WATCH LIVE on Benzinga.
About Clayton Magouyrk
On Oracle's Q3 FY26 earnings call, CEO Clay Magouyrk reported that multicloud database revenue grew 531% year-over-year and AI infrastructure revenue grew 243% year-over-year, stating that both have "demand that exceeds supply." He noted that Oracle has signed more than $29 billion in contracts under a new model combining bring-your-own-hardware and upfront customer payments, which he said enables expansion "without any negative cash flow from Oracle." Magouyrk also said that AI capacity delivered in Q3 had a gross margin of 32%, above the company's 30% guidance, and that combining this with higher-margin database services contributes to Oracle's profitable growth. Regarding infrastructure, Magouyrk addressed latency concerns by stating that for business queries requiring several seconds of AI model processing, "an extra 40 milliseconds of latency from New York to Wyoming is not going to hurt you." He also discussed Oracle's sovereign AI and Alloy offerings, describing increasing pipeline globally and citing the company's differentiated form factor as a "huge differentiator in the market." On the earnings call, chairman Larry Ellison elaborated on Oracle's strategy to automate the healthcare ecosystem using software agents, characterizing the company as a "disruptor" and stating that "the SAS apocalypse applies to others but not to us."