Oracle Cloud Revenue Soars 44%

Oracle's Q3 earnings revealed total revenue up 22% to $17.2 billion, exceeding estimates. This growth was largely fueled by cloud services. Oracle's remaining performance obligations (RPO) jumped to $553 billion, signaling strong future demand, particularly for AI cloud infrastructure. Much of this RPO increase is tied to large-scale AI contracts, with customers often prepaying for GPU equipment or providing the GPUs themselves. Oracle is aggressively expanding its cloud infrastructure, including AI superclusters powered by NVIDIA and AMD GPUs. This expansion addresses the surging demand for AI training and inferencing capabilities. The company has increased its fiscal year 2026 capital expenditure plans to approximately $50 billion to support AI data center construction across the U.S.. While this elevated capex introduces near-term cash flow pressure, it positions Oracle to convert its backlog into revenue at a faster pace. Oracle expects total cloud revenue to grow between 46% and 50% in USD for Q4 2026. They've also raised their fiscal year 2027 revenue guidance to $90 billion.