Oracle (ORCL) stock jumped 8% after Q3 earnings beat estimates with $17.19B revenue and $1.79 EPS. The company raised its 2027 revenue forecast to $90B. The postOracle (ORCL) stock jumped 8% after Q3 earnings beat estimates with $17.19B revenue and $1.79 EPS. The company raised its 2027 revenue forecast to $90B. The post

Oracle (ORCL) Stock Surges 8% on Strong Q3 Earnings Beat and AI Growth

2026/03/11 16:34
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Key Highlights

  • Oracle’s third-quarter revenue reached $17.19 billion, surpassing the $16.91 billion consensus — representing 22% annual growth
  • Earnings per share of $1.79 exceeded Wall Street’s $1.70 projection
  • Contracted future revenue (RPO) surged 325% annually to $553 billion
  • Fiscal 2027 revenue guidance increased to $90 billion, topping the $86.6 billion analyst consensus
  • Shares climbed 8.3% during extended trading following the announcement

Oracle delivered impressive fiscal third-quarter financial results on March 10, surpassing analyst projections for both top and bottom lines. The announcement sent shares soaring 8.3% during after-hours trading.

For the period ending February 28, the company posted revenue of $17.19 billion, marking a 22% increase from the same period last year. Wall Street had anticipated $16.91 billion. The company delivered $1.79 in earnings per share, outperforming the $1.70 consensus.

The timing of these results couldn’t be better. Market watchers have been eager to determine whether Oracle’s substantial investments in AI infrastructure would generate meaningful returns — and this quarter provided reassuring evidence.


ORCL Stock Card
Oracle Corporation, ORCL

Remaining performance obligations, a measure of committed future revenue, exploded 325% compared to last year, reaching $553 billion. This represents an increase from the previous quarter’s $523 billion and exceeded Visible Alpha analysts’ estimate of $540.37 billion. The company attributed the majority of RPO expansion to substantial AI-related contracts.

Additionally, Oracle increased its fiscal 2027 revenue projection to $90 billion, surpassing the $86.6 billion Wall Street consensus.

Cloud Performance and Profitability Projections

Oracle’s cloud division expanded 41% year-over-year in constant currency terms. The infrastructure-as-a-service segment experienced particularly strong growth, increasing 81%. The operating margin reached 42.9%, marginally exceeding projections.

Co-CEO Clay Magouyrk indicated that cloud profitability should continue improving. He highlighted that leasing AI processors from technology partners like Nvidia generates margins between 30% and 40%, while 10% to 20% of customer cloud expenditures translate into Oracle’s database operations, which deliver gross margins ranging from 60% to 80%.

Looking ahead to Q4, Oracle projects revenue growth between 19% and 21%, with cloud revenue expanding 46% to 50%. Adjusted earnings per share are forecast at $1.96 to $2.00, surpassing the $1.94 consensus estimate.

Wall Street Reaction

Jefferies analyst Brent Thill maintained his Buy recommendation with a $320 target price. He characterized the results as a “clean beat across the board” and highlighted the impressive cloud expansion.

The Street maintains a Strong Buy consensus rating on ORCL, comprised of 24 Buy ratings, five Hold ratings, and zero Sell ratings from the last three months. The mean price target stands at $259.96.

Executive chairman Larry Ellison dismissed concerns that AI-powered coding solutions would diminish demand for enterprise software. He contended that Oracle is leveraging these technologies to develop innovative SaaS offerings with more efficient engineering teams. “That’s why we think the ‘SaaS’-apocalypse applies to others but not to Oracle,” he stated.

The enterprise software giant also confirmed it has no plans to seek additional capital to finance its ambitious AI data center expansion initiatives.

The post Oracle (ORCL) Stock Surges 8% on Strong Q3 Earnings Beat and AI Growth appeared first on Blockonomi.

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