TLDR
- Oracle revenue jumps 22% to $17.2B as cloud and AI deals accelerate growth fast
- Oracle Cloud Infrastructure surges 84% as AI demand boosts capacity plans ahead
- Massive $553B backlog signals long-term AI cloud demand for Oracle services ahead
- Oracle plans $50B capex push to power AI infrastructure growth through 2027
- Despite strong earnings, ORCL stock slips after quarterly results announcement today
Oracle Corporation reported strong fiscal third-quarter results while its stock ended the session lower. Oracle (ORCL) stock closed at $149.40 after declining 1.43% during the trading session. However, the company posted sharp revenue growth driven by cloud services and expanding artificial intelligence contracts.
Oracle Corporation, ORCL
Total revenue reached $17.2 billion during the quarter and increased 22% year over year. Cloud services continued to lead the company’s growth strategy. At the same time, large enterprise contracts significantly expanded Oracle’s long-term backlog.
Cloud and AI Contracts Drive Strong Quarterly Performance
Oracle generated $17.2 billion in quarterly revenue and recorded strong expansion across cloud operations. Cloud revenue reached $8.9 billion and increased 44% compared with the previous year. Cloud operations contributed more than half of the company’s total quarterly revenue.
Infrastructure services recorded the fastest expansion within the cloud segment. Oracle Cloud Infrastructure revenue reached $4.9 billion and increased 84% year over year. Oracle Cloud Database revenue grew 35%, and multicloud database revenue surged 531%.
Software-as-a-Service operations also continued steady growth during the quarter. Cloud application revenue reached $4.0 billion and increased 13%. Fusion Cloud ERP and NetSuite Cloud ERP each generated $1.1 billion and delivered double-digit growth.
Earnings Growth and Expanding Backlog Strengthen Outlook
Oracle posted strong profitability as operating income and earnings improved significantly. GAAP earnings per share reached $1.27 and increased 24% year over year. Non-GAAP earnings per share reached $1.79 and increased 21%.
Operating income also expanded during the quarter as cloud margins strengthened. Non-GAAP operating income reached $7.4 billion and increased 19% compared with the previous year. Non-GAAP net income reached $5.2 billion and grew 23%.
The company also reported a significant increase in remaining performance obligations. Oracle’s RPO reached $553 billion and increased 325% from the previous year. Large artificial intelligence contracts accounted for most of this backlog growth.
AI Demand and Capital Funding Support Long-Term Expansion
Strong demand for artificial intelligence computing continues to reshape Oracle’s cloud strategy. Large technology companies require extensive infrastructure for AI training and inference workloads. Consequently, Oracle continues expanding capacity to meet growing enterprise demand.
Oracle recently launched a major financing program to support this expansion. The company raised $30 billion through investment-grade bonds and convertible preferred shares. Strong demand from financial markets produced a heavily oversubscribed order book.
The company expects further growth through fiscal 2027 as AI demand expands. Oracle forecasts fiscal 2026 revenue near $67 billion while planning capital expenditures of $50 billion. Furthermore, the company raised fiscal 2027 revenue guidance to $90 billion.
Oracle also issued guidance for the upcoming fourth quarter. Total revenue should grow between 19% and 21% in U.S. dollars. Meanwhile, non-GAAP earnings per share are expected to reach between $1.96 and $2.00.
Oracle’s board also approved a quarterly dividend of $0.50 per share. The dividend will be paid on April 24, 2026, to shareholders recorded on April 9. Consequently, Oracle continues balancing rapid cloud expansion with consistent shareholder returns.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
