Investors who spent the better part of 2026 watching Oracle shares shed more than 23% finally got something to feel good about on Tuesday. The company posted fiscal third-quarter results that cleared Wall Street’s expectations across the board, and then went a step further by raising its revenue outlook for fiscal 2027 by a full billion dollars, landing that new target at $90 billion.
Revenue for the quarter reached $17.19 billion against an expected $16.91 billion, while adjusted earnings per share came in at $1.79, topping the $1.70 consensus. Net income climbed to $3.72 billion, up from $2.94 billion in the same period last year. Those are not marginal beats. They reflect a business that is scaling its cloud division at a pace that even cautious analysts have struggled to model accurately.
Cloud infrastructure revenue grew 84% year over year, reaching $4.9 billion and accelerating well past the 68% growth Oracle posted in the prior quarter. Total cloud revenue, covering both infrastructure and software as a service, hit $8.9 billion, up 44%. Clients driving that growth included Air France-KLM, Lockheed Martin, SoftBank, and Microsoft’s Activision Blizzard unit.
Perhaps the most striking figure in the entire report was the remaining performance obligations number, which more than quadrupled to $553 billion compared to a year earlier. That figure essentially represents contracted future revenue, and it tells a story about where enterprise demand for AI infrastructure currently sits: still climbing, and quickly.
Oracle also confirmed it plans to raise between $45 billion and $50 billion this fiscal year to expand cloud capacity further, with over 10 gigawatts of computing power coming online within three years. The company separately addressed reports about layoffs, attributing workforce restructuring to AI code generation tools that now allow smaller teams to build software faster and at lower cost.
Larry Ellison, Oracle’s co-founder and technology chief, framed the company’s position bluntly on the analyst call, arguing that AI-driven automation makes Oracle a genuine disruptor in enterprise software rather than a casualty of shifting trends.
After falling more than 50% from September highs, Oracle shares jumped roughly 10% in after-hours trading following the results. One quarter rarely rewrites a full narrative, but this one at least gives investors a reason to reconsider.
