Oracle Shares Surge on Q3 Earnings Beat

Oracle's Q3 earnings per share reached $1.79, exceeding analysts' estimates of $1.70. Revenue also surpassed expectations, hitting $17.19 billion compared to the anticipated $16.92 billion. This strong performance reflects a 22% year-over-year increase. A major driver was cloud revenue, which jumped 44% to $8.9 billion. Within this, cloud infrastructure revenue (IaaS) soared by 84%. Oracle's remaining performance obligations (RPO) also surged to $553 billion, signaling substantial future demand. Oracle has raised its fiscal year 2027 revenue target to $90 billion, exceeding previous estimates. The company also confirmed it holds a 15% stake in TikTok US. CFO Doug Kehring noted that Q3 was the first quarter in over 15 years where both organic total revenue and non-GAAP EPS grew by at least 20%. Oracle has already secured $30 billion of the $50 billion it planned to raise to fund AI data centers. These funds were raised through investment-grade bonds and mandatory convertible preferred stock. The company doesn't anticipate needing additional financing to support its AI contracts.