Oracle CEO Clay Magouyrk participates in a roundtable on a ratepayer protection pledge in the Indian Treaty Room of the Eisenhower Executive Office Building at the White House in Washington on March 4, 2026. Trump has summoned tech leaders to the White House to sign pledges committing their companies to foot the electricity bill for energy-hungry data centers.
Bonnie Cash | UPI | Bloomberg | Getty Images
Oracle shares rose 6% in extended trading on Tuesday after the database software maker reported quarterly results that surpassed Wall Street projections.
Management said is now forecasting $90 billion in fiscal 2027 revenue. Analysts polled by LSEG had anticipated $86.60 billion.
Here’s how the company did in the quarter relative to LSEG consensus:
- Earnings per share: $1.79 adjusted vs. $1.70 expected
- Revenue: $17.19 billion vs. $16.91 billion expected
Oracle’s overall revenue increased 22% year over year in the fiscal third quarter, which ended on Feb. 28, according to a statement. Net income rose to $3.72 billion, or $1.27 a share, from $2.94 billion, or $1.02 a share, in the same quarter a year earlier. Adjusted earnings per share excludes stock-based compensation expense.
The company reported $8.9 billion in total cloud revenue, up 44% and more than the $8.85 billion consensus among analysts surveyed by StreetAccount. Oracle said it generated $4.9 billion in cloud infrastructure revenue, up 84%, a faster pace than the 68% growth in the prior quarter.
Oracle shares have plummeted over 50% from their September highs, falling along with other software vendors on broader artificial intelligence concerns as well as Wall Street’s specific fears about the company’s hefty debt load that’s funding its AI buildout.
As of Tuesday’s close, the stock had declined 23% in 2026, while the S&P 500 is down less than 1% in the same period.
Oracle has won large contracts to deliver cloud infrastructure to AI companies such as OpenAI, but has less cash on hand than larger competitors such as Amazon and Microsoft.
Renting out Nvidia graphics chips ekes out a smaller profit margin than selling software licenses, and Oracle reported $13.18 billion in negative free cash flow for the past 12 months.
During the quarter, Oracle announced plans to raise $45 billion to $50 billion in the fiscal year to expand its cloud infrastructure capacity.
In Abilene, Texas, where Oracle and Crusoe are constructing a data center project for OpenAI, “two buildings are completely operational and the rest of the campus is on track,” Oracle said in a Sunday X post. The statement came after Bloomberg reported that Oracle and OpenAI had dropped plans to expand the site, though Oracle said media reports regarding Abilene were incorrect.
Executives will discuss the results on a conference call starting at 5 p.m. ET.
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