Oracle has just posted its Q3 FY2026 results, impressing critics and experts alike. The software company has exceeded both revenue and earnings expectations. These results have helped Oracle to brush off investor concerns regarding Oracle’s multi-million dollar push into AI computing.
During the earnings call, the Oracle CEO spoke about the widespread concerns of AI tools hurting software companies. The term “SaaS-apocalypse” has been trending across financial markets and investor circles for weeks. The term became popular after Anthropic released its Claude Cowork AI platform in late January. Following its launch, nearly $300 billion in global software market value was erased.
Stocks of major SaaS companies, including Salesforce, Workday, Atlassian, and ServiceNow, fell sharply. Investors’ big worry is that AI agents may replace large parts of the business of these companies. The anxiety has led to a sudden loss of confidence in software-as-a-service (SaaS) companies, as these advanced AI agents are seen to be capable of automating tasks traditionally handled by business software companies.
Oracle’s CEO on SaaS-apocalypse?
Oracle CEO Mike Sicila, while answering a question on SaaS-apocalypse, said, “I’ll say a few words about the reported SaaS apocalypse. You’ve all heard the thesis or theory that new companies coding quickly using AI will spell the death of SaaS”
Importantly, he said, “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. The use of AI coding tools inside Oracle is enabling smaller engineering teams to deliver more complete solutions to our customers more quickly.”
Oracle integrating AI into its products
To support his argument, Mike Sicila said, “We are building brand-new SaaS products using AI and also embedding AI agents right into our existing application suites. By embracing AI with small engineering teams, we have just built three brand-new CX applications. Lead generation and qualification, sales orchestration, automated selling, and our new website generator. In fact, we just used the website generator to build and launch the new Oracle.com. We’ve built these new CX products to help our customers sell, not simply to administer a forecast or generate email opens.”