Oracle Reports 22% Rise in Q3 Revenue, Surges 9% After Hours

by Oh Suyon

Published 11 Mar.2026 06:51(KST)

U.S. software company Oracle reported earnings that exceeded market expectations and raised its revenue outlook for fiscal year 2027, causing its share price to surge.

On March 10 (local time), Oracle announced that its revenue for the third quarter of its fiscal year (December of last year to February of this year) reached $17.19 billion (approximately KRW 25.347 trillion), up 22% from the same period last year. This figure surpassed the market forecast of $16.91 billion compiled by LSEG.

Oracle logo. Photo by Reuters and Yonhap News Agency

Revenue from the cloud business, which accounts for more than half of total revenue, rose 44% year-on-year to $8.9 billion, beating the analyst consensus of $8.85 billion surveyed by StreetAccount.

Adjusted earnings per share (EPS) increased 21% year-on-year to $1.79, exceeding the market expectation of $1.70.

Oracle stated that its remaining performance obligations (RPO) at the end of the quarter stood at $553 billion, up 325% from a year ago, and explained that the majority of this increase was related to large-scale artificial intelligence (AI) contracts. The company said, "We will not need to raise additional funds for these contracts," adding, "Most of the necessary equipment has either been funded with customer prepayments, or customers have purchased graphics processing units (GPUs) themselves and provided them to Oracle."

However, due to massive investments in AI infrastructure and related areas, Oracle recorded a net cash outflow of $24.7 billion in free cash flow over the past 12 months.

Oracle projected that fourth-quarter revenue will grow by 19-21% and earnings per share will rise by 15-17%, reaching between $1.96 and $2.00.

The company raised its total revenue outlook for the fiscal year 2027 to $90 billion, surpassing the analyst consensus of $86.6 billion surveyed by LSEG.

Recently, it was reported that Oracle and OpenAI have scrapped plans to expand the "Stargate" data center under construction in Abilene, Texas. Bloomberg News also reported that Oracle is planning layoffs of several thousand employees as part of cost-cutting measures.

Oracle's stock had fallen by more than 50% from its peak in September last year up to the previous day, but following the earnings announcement, it surged more than 9% in after-hours trading, hovering around $163 as of 5:45 p.m. Eastern Time.