Oracle Earnings Beat Expectations: Cloud Revenue Jumps 44%, AI Demand to Continue Through 2027
Oracle reports Q3 earnings with cloud revenue up 44% to $8.9 billion, infrastructure revenue up 84%. Company expects AI demand to continue through at least 2027, sending stock up 10%.
On March 10, 2026, Oracle released third quarter earnings, with cloud revenue up 44% year-over-year to $8.9 billion, and infrastructure revenue surging 84% to $4.9 billion. This beat expectations and pushed Oracle stock up 10%.
Cloud Revenue Exceeds Expectations
Oracle's cloud business continues strong growth:
Total cloud revenue: $8.9 billion, up 44% YoY
Cloud infrastructure revenue: $4.9 billion, up 84% YoY
Remaining Performance Obligations (RPO): $55.3 billion, up 325% YoY
Total cloud revenue: $8.9 billion, up 44% YoY
Cloud infrastructure revenue: $4.9 billion, up 84% YoY
Remaining Performance Obligations (RPO): $55.3 billion, up 325% YoY
The company expects cloud revenue to grow 46%-50% in Q4, reaching approximately $10 billion.
AI Demand Remains Strong
Oracle states that AI training and inference demand continues to outpace its own supply. The company expects the AI boom to continue through 2027 and beyond.
Oracle has raised its FY2027 revenue guidance to $90 billion, significantly up from the current fiscal year.
Increased AI Infrastructure Investment
Oracle plans to spend $50 billion in capital expenditures in FY2026, primarily for expanding AI infrastructure. The company's strategy is to compete with major tech companies in the cloud infrastructure market.