Overview
- Oracle reported revenue of $17.2 billion and adjusted EPS of $1.79 for fiscal Q3, topping estimates with 22% and 21% year-over-year growth, respectively.
- Cloud revenue rose 44% to $8.9 billion and Oracle Cloud Infrastructure grew about 84%, with management citing 30%–40% margins on rented AI chips and a blended 32% gross margin on delivered AI capacity.
- Remaining performance obligations jumped to roughly $553 billion, driven by large AI deals that Oracle says are largely prepaid or bring-your-own-GPU, and the company reiterated about $50 billion in fiscal-year capex.
- Shares jumped as much as 14% after the report as analysts raised targets and ratings, including a JPMorgan upgrade and a Barclays price target increase to $240.
- Analysts still flag execution risks including customer concentration tied to OpenAI and uncertainty around the reported Stargate expansion in Texas, which Oracle has disputed.