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Oracle Stock Jumps on AI Deals, Beat Lifts 2027 Outlook to $90 Billion

Large AI contracts swelled Oracle's backlog to $553 billion, much of it prepaid or supplied with customer GPUs.

Overview

  • Fiscal Q3 revenue rose 22% to $17.2 billion with non-GAAP EPS of $1.79, topping analysts' estimates.
  • Cloud revenue grew 44% to $8.9 billion, including an 84% surge in Oracle Cloud Infrastructure to $4.9 billion.
  • Remaining performance obligations hit $553 billion, up 325% year over year, as Oracle said AI demand is outpacing available capacity.
  • For fiscal Q4, Oracle guided to 19%–21% revenue growth and non-GAAP EPS of $1.96–$2.00, and it reaffirmed its $67 billion fiscal 2026 revenue target.
  • Oracle recorded $153 million in restructuring costs tied to AI-assisted coding, as leaders said new tools speed development and do not threaten its SaaS business.