Clay Magouyrk, co-chief executive officer of Oracle Corp., during a media tour of the Stargate AI data center in Abilene, Texas, US, on Tuesday, Sept. 23, 2025.
Kyle Grillot | Bloomberg | Getty Images
Oracle shares rose 8% in extended trading on Tuesday after the software vendor reported quarterly results that surpassed Wall Street projections and boosted its revenue guidance for fiscal 2027.
Management said is now forecasting $90 billion in fiscal 2027 revenue. Analysts polled by LSEG had anticipated $86.60 billion.
Oracle sees $1.92 and $1.96 in adjusted earnings per share for the fiscal fourth quarter, with revenue growth between 19% and 20%. LSEG’s consensus included $1.70 per share and 20% revenue growth.
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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