Oracle’s customer experience business is expanding, but it is trailing the faster growth seen across the company’s other cloud applications, the vendor’s quarterly results show.
Oracle reported that revenue for its Fusion CX suite increased by 6 percent year over year in constant currency during the third quarter of its financial year, trailing stronger performance in other parts of the applications portfolio such as ERP and supply chain management.
Fusion ERP revenue rose by 14 percent, while Fusion SCM and Fusion HCM each advanced by 15 percent and NetSuite increased by 11% percent.
While the CX segment continues to expand, the results indicate that growth in customer-facing software remains slower than other enterprise application categories inside the vendor’s cloud business.
AI and Cloud Fuel Oracle’s Growth
The CX performance came as Oracle reported a broader surge in cloud demand during its quarterly earnings call, including the fastest organic revenue and earnings growth the company has delivered in more than 15 years.
Executives attributed much of the momentum to AI infrastructure and multi-cloud database services, which are expanding faster than the applications business. Oracle’s Co-CEO Clay McGork said during the call:
“Multi-cloud database revenue grew 531 percent year over year. AI infrastructure revenue grew 243 percent year over year. Both also have demand that exceeds supply and a clear execution plan from Oracle Corporation that will rapidly turn that demand into profitable recurring revenue.”
Those infrastructure gains are central to Oracle’s strategy. The company reported $553BN in remaining performance obligations, largely tied to AI infrastructure and cloud commitments. To support that demand, Oracle has secured more than 10 gigawatts of power and data center capacity through partners while also signing more than $29BN in new contracts under financing models such as bring-your-own-hardware and upfront customer payments.
Even as infrastructure becomes a major growth engine, Oracle leaders argued that AI capabilities embedded in enterprise applications will drive the next wave of adoption, including in CX.
According to Co-CEO Mike Cecilia, the company has already embedded more than 1,000 AI agents across its application suites. That effort extends into new CX functionality, where Oracle is using AI-assisted coding tools to accelerate product development.
“Embracing AI with small engineering teams, we have just built three brand new CX applications: lead generation and qualification, sales orchestration and automated selling, and our new website generator,” Cecilia said.
“We have built these new CX products to help our customers sell, not simply to administer a forecast or generate email opens. These are three products that Salesforce.com does not have.”
The comment reflects a direct competitive positioning against Salesforce, which remains the dominant vendor in the CRM market. But while Salesforce’s growth rate has slowed to roughly 7 percent annually, with around $41.5BN in revenue its scale remains significantly larger than Oracle’s CX business. Salesforce maintains a large installed base and partner ecosystem built around its Agentforce AI platform and broader portfolio.
Oracle executives acknowledged the ongoing debate around whether AI could reshape or potentially disrupt SaaS applications altogether. Cecilia indicated that the company views AI as a force that strengthens integrated enterprise platforms rather than replacing them, stating:
“I do think that AI tools and their coding capabilities would be a threat if we were not adopting them, but we are—and very rapidly.”
Cecilia added that enterprise applications remain essential because they manage complex operational data and regulatory processes. “These systems… are highly complex, mission-critical, with decades of industry experience, decades of regulatory compliance.”
To expand the role of AI inside enterprise workflows, Oracle has also introduced AI Agent Studio within its Fusion applications suite. Chairman and CTO Larry Ellison described the platform as a development environment that allows customers and partners to build custom agents that interact directly with enterprise systems.
“We provide a lot of AI capability built into our applications, but they are open. They are open to allow our customers and our partners to add to that portfolio of agents.”
Stock market reaction to the earnings results suggests confidence in Oracle’s AI strategy may be returning after investors sold off the stock during the fourth quarter of 2025. Shares of the company rose by more than 10 percent following the announcement. Analysts are closely watching Oracle’s infrastructure relationship with OpenAI, which has come under scrutiny with investors questioning the financial and potential customer-concentration risks tied to large AI cloud contracts.
Cloud Division Restructuring Raises Questions for CX
At the same time, Oracle’s cloud division may be undergoing internal changes. Reports in recent weeks have indicated the company could be planning layoffs of as many as 30,000 employees, including roles tied to the cloud division, as it redirects investment to AI data centers.
Last quarter, Oracle announced $1.6BN in costs related to its 2026 Restructuring Plan, with the bulk of the expense attributed to employee severance payments.
As Oracle CX is part of the broader cloud applications portfolio, restructuring in that unit could potentially influence development priorities or staffing tied to CX products.
Oracle declined to comment on the reported layoffs when contacted by CX Today.
Oracle’s growth narrative is increasingly tied to AI infrastructure while its enterprise applications, including CX, evolve within that broader platform strategy. For CX leaders using Oracle technology, the company’s roadmap indicates that customer experience capabilities will continue to be developed alongside the expanding AI and cloud ecosystem that now sits at the center of Oracle’s business.
