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Oracle Lifts 2027 Sales Target After Q3 Beat as AI Backlog Swells to $553 Billion

Shares jumped after Oracle said large AI contracts require no additional company funding.

Oracle is planning to cut thousands of jobs due to a "cash crunch" resulting from a massive AI data center expansion effort.
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Overview

  • Fiscal Q3 revenue reached about $17.19 billion with adjusted EPS of $1.79, surpassing Wall Street estimates.
  • Remaining performance obligations climbed to roughly $553 billion, driven by large AI deals that Oracle says customers will fund up front.
  • Management raised its fiscal 2027 revenue outlook to $90 billion and forecast Q4 adjusted EPS of $1.96 to $2.00 with 19% to 21% sales growth.
  • The stock gained roughly 8% to 10% in extended and premarket trading as the results eased concerns about the AI infrastructure ramp.
  • Funding risks remain in focus with capex guided near $50 billion this fiscal year, trailing 12‑month free cash flow around negative $24.7 billion, total debt above $100 billion, and ongoing restructuring costs tied to workforce reductions.