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Oracle’s Record Quarter Fuels AI Push as Backlog Swells to $553 Billion

Investors weigh heavy cash burn after a $25 billion debt raise to fund rapid data‑center expansion.

Overview

  • Oracle reported fiscal Q3 revenue of $17.2 billion and non-GAAP EPS of $1.79, with both metrics rising more than 20% year over year for the first time in over 15 years.
  • Cloud momentum accelerated, with Infrastructure-as-a-Service revenue up 84% to $4.9 billion and AI infrastructure revenue up 243%, as total cloud revenue reached $8.9 billion.
  • Remaining performance obligations climbed to $553 billion, signaling a massive contracted backlog that underscores sustained demand for Oracle’s cloud and AI services.
  • To support build-outs after reporting $43.8 billion in negative free cash flow through the first three quarters, Oracle secured $25 billion in debt and plans workforce reductions of 12%–18% (about 20,000–30,000 jobs).
  • Oracle said its Health Clinical AI Agent for automated note generation is live in U.S. emergency departments and inpatient settings, with providers reporting more than 200,000 physician hours saved.