Oracle reports strong 3Q results, anticipates continued growth
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Oracle posted solid revenue growth for its fiscal third quarter, driven by robust demand for its cloud services and a significant expansion in data center capacity. The company's revenue rose 6.4% year-over-year to $14.13 billion, though slightly below Wall Street expectations of $14.38 billion.
Net income increased to $2.94 billion, or $1.02 per share, up from $2.4 billion, or $0.85 per share, a year earlier. On an adjusted basis, earnings per share came in at $1.47, narrowly missing analyst estimates of $1.49. Despite the minor earnings miss, investor sentiment remained positive, with Oracle shares rising 4.8% to $155.87 in after-hours trading, continuing their impressive 30% gain over the past year.
Chairman Larry Ellison highlighted particularly strong customer demand in AI, noting a remarkable 244% increase in GPU consumption for AI-related services over the past 12 months. CEO Safra Catz added that Oracle secured sales contracts exceeding $48 billion, supported by record-high demand levels and a substantial $130 billion sales backlog.
Looking forward, Oracle projects a revenue increase of approximately 15% for its upcoming fiscal year, starting in June. This aligns closely with analyst forecasts predicting around 13% growth in fiscal 2026. Investors and traders should monitor Oracle's execution on its AI-driven growth strategy and its continued expansion of data center capabilities as key indicators for future performance.
Net income increased to $2.94 billion, or $1.02 per share, up from $2.4 billion, or $0.85 per share, a year earlier. On an adjusted basis, earnings per share came in at $1.47, narrowly missing analyst estimates of $1.49. Despite the minor earnings miss, investor sentiment remained positive, with Oracle shares rising 4.8% to $155.87 in after-hours trading, continuing their impressive 30% gain over the past year.
Chairman Larry Ellison highlighted particularly strong customer demand in AI, noting a remarkable 244% increase in GPU consumption for AI-related services over the past 12 months. CEO Safra Catz added that Oracle secured sales contracts exceeding $48 billion, supported by record-high demand levels and a substantial $130 billion sales backlog.
Looking forward, Oracle projects a revenue increase of approximately 15% for its upcoming fiscal year, starting in June. This aligns closely with analyst forecasts predicting around 13% growth in fiscal 2026. Investors and traders should monitor Oracle's execution on its AI-driven growth strategy and its continued expansion of data center capabilities as key indicators for future performance.