Oracle co-CEO Mike Sicilia: AI coding tools hurting software companies does not apply to Oracle, yes they may disrupt …

Oracle proved most analysts wrong as the company posted strong quarterly results. The company’s Q3 FY2026 results surpassed both earnings and revenue expectations. The results help to allay investor concerns that Oracle’s costly multi-billion dollar push into AI computing may not generate profits quickly enough. During the earnings conference call, Oracle management spoke about the widespread concerns of AI tools hurting software companies. The term “SaaS-apocalypse” has been trending across financial markets and investor circles since 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. Responding to a question on SaaS-apocalypse, Oracle co-CEO Mike Sicilia, 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. 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.”

Giving example, Sicilia added, “We are building brand-new SaaS products using AI and also embedding AI agents right into our existing applications suites. By 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. 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.”“In summary, these are not systems that can be replaced by a small collection of niche features cobbled together and bolted on in the name of AI. Yes, some smaller or single-focused SaaS players may well be disrupted, but Oracle will not be among them,” concluded Sicilia on the topic.

Oracle founder on Larry Ellison on SaaS-apocalypse

Oracle co-founder and executive chairman, Larry Ellison said that all the investor concern that AI coding tools would weaken demand for business software should not apply to Oracle, because the company is embracing those tools by using small teams of engineers to create new software-as-a-service (SaaS) products. “Thank God we have these coding tools now that allow us to build a comprehensive set of software, agent-based software to automate a complete ecosystem like healthcare or financial services. That’s what we’re doing at Oracle. That’s why we think we’re a disruptor. That’s why we think the SaaS apocalypse applies to others, but not to Oracle,” Ellison said. Adding context to his statement, the Oracle founder said, “Yeah, I’ll just end with providing a bunch of pre-built agents for all of our applications. In addition, we provide a development environment, the AI data platform, the development environment that allows our customers to easily add their own agents to what we’ve built. We don’t think we can build all the application agents for a banking system or all the application agents for a healthcare system. A lot of our partners are gonna do that, a lot of our customers are gonna do that. What the AI data platform does is it provides a complete integrated development environment where you can build your own agents using any AI model that is in the Oracle Cloud, and that is basically all of the popular AI models.” He added, “You can use it for coding the agent, you can use it, yeah, you do multi-step reasoning for queries. You can. We plan in our Fusion accounting system, for example, we will have a complex agent that does something called the close. When you close your books with Fusion in the not too distant future, it will be an autonomous agent, no human beings involved. You will close your books by simply telling the AI agent to go ahead and close the books, and then you will get your results. We provide a lot of AI capability built into our applications, but they are open. They are open and allow our customers and our partners to add to that portfolio of agents, and we build an entire ecosystem that automates healthcare, automates financial services, automates retail. That is what AI is allowing us to do, is to expand our horizons for the scope of the suites of the SaaS software we’re building to automate entire ecosystems.”