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Oracle’s Q3 Beat and Soaring AI Cloud Sales Reignite the Dip-Buy Case

Customer prepayments alongside progress on a $50 billion 2026 funding plan are easing cash-burn fears.

Overview

  • Fiscal Q3 revenue reached $17.2 billion, up 22% year over year, with Oracle topping estimates across segments.
  • Cloud infrastructure revenue jumped 84% to $4.9 billion on AI workload demand from clients such as OpenAI and Anthropic.
  • Backlog swelled to $553 billion after a 325% RPO surge, including $29 billion in bring-your-own-hardware or upfront-paid contracts last quarter.
  • Oracle has secured roughly $30 billion toward a planned $50 billion 2026 raise via bonds and convertible preferreds, alongside nearly $40 billion in cash, capex near $57 billion and total debt reported around $135 billion.
  • Shares are about 52% below their 2024 peak and trade near 20x forward earnings as analysts project roughly 35% annual revenue growth and 28% EPS growth through 2029; Q3 free cash flow also exceeded expectations.