AUSTIN, Texas – Oracle (NYSE: ORCL) shares skyrocketed as much as 11% in trading Wednesday, after the enterprise giant delivered a “blockbuster” third-quarter earnings report that silenced critics and signaled a massive acceleration in its AI-driven cloud business.
For the first time in over 15 years, Oracle achieved a milestone of 20% or more growth in both organic total revenue and non-GAAP earnings per share (EPS) simultaneously. The results were primarily driven by an explosive demand for AI training and infrastructure, which has seen Oracle’s backlog of contracted business (Remaining Performance Obligations) quadruple over the past year.
| Metric | Reported | Wall Street Estimate | Year-over-Year Growth |
| Total Revenue | $17.19 Billion | $16.92 Billion | +22% |
| Adjusted EPS | $1.79 | $1.70 | +21% |
| Cloud Revenue (Total) | $8.9 Billion | $8.85 Billion | +44% |
| Cloud Infrastructure (IaaS) | $4.9 Billion | $4.74 Billion | +84% |
The “Stargate” Momentum and 2027 Outlook
The star of the show was Oracle Cloud Infrastructure (OCI), which grew 84% as the company continues to position itself as a central backbone for the AI revolution.
- RPO Milestone: Remaining Performance Obligations (RPO) surged 325% year-over-year to $553 billion. This backlog includes a massive $300 billion multi-year contract with OpenAI, solidifying Oracle’s role in the highly publicized “Stargate” project.
- Bullish 2027 Guidance: Management raised its fiscal year 2027 revenue outlook to $90 billion, significantly higher than the previous analyst consensus of $86.6 billion.
- AI Efficiency: Management noted that AI models have become so efficient at generating code that the company is restructuring into smaller, more agile product development teams, allowing for higher productivity with fewer resources.
“The demand for cloud computing for AI training and inferencing continues to grow faster than supply,” the company stated. “These market dynamics enable Oracle to comfortably meet and likely exceed our revenue growth rate forecast for FY27 and beyond.”
Market Context: A Sharp Reversal
The stock’s rally marks a dramatic pivot in sentiment. Prior to this report, Oracle had been under intense pressure, with shares down over 20% year-to-date in 2026 due to concerns over its massive $100 billion debt load and aggressive data center spending.
However, investors were heartened by the disclosure that Oracle has already raised $30 billion of its planned $50 billion in financing and does not expect to issue further bonds in 2026. This, combined with the news that many AI customers are prepaying for hardware, has alleviated fears regarding near-term liquidity.
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“This article was generated with the assistance of AI and verified for factual accuracy against Oracle’s Q3 2026 financial disclosures.”
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