Clayton Magouyrk on TikTok investment
From Oracle Corp. Q3 FY26 Earnings Call | $ORCL | 🔴 WATCH LIVE · · Benzinga
“In January, TikTok US completed the separation of its US data operations from ByteDance into an independent company in which Oracle now holds a 15% equity stake along with a seat on the board. In terms of impact to our financials, there is no impact to the revenue related to the services we have been providing as their technology vendor. That is continuing as it was. As it relates to the equity investment, we will be accounting for this under the equity method and we will recognize our share of the new company's earnings for the period from the close of the investment in late January to March 31st in our Q4 results.”
On , Clayton Magouyrk, Chief Executive Officer & Director at Oracle Corporation, spoke about TikTok investment 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."