The company added that some of its largest AI Cloud capacity consumers have strengthened their financial positions substantially in recent times.
- Oracle said that for fiscal year 2027, it expects total revenue of $90 billion, significantly beating analysts’ predictions of $86.32 billion.
- For FY26, the company said it expects capital expenditures of $50 billion, in line with previous guidance.
- For Q3 of 2026, Oracle said that quarterly revenues grew 22% to $17.2 billion, compared to Wall Street expectations of $16.91 billion.
Oracle Corp. (ORCL) on Tuesday said in its latest earnings release that demand for cloud computing related to artificial intelligence training and inferencing continues to grow faster than supply.
The company added that some of its largest AI Cloud capacity consumers have strengthened their financial positions substantially in recent times.
Based on these, the Austin-based tech company expects to comfortably meet and likely exceed its revenue growth rate forecast for fiscal year 2027 and beyond.
Shares of ORCL soared nearly 8% after the company’s release.
Oracle’s Guidance
The company said that for fiscal year 2026, it forecasts revenue of $67 billion, compared with Street expectations of $66.94 billion, according to data from Fiscal.ai. However, for fiscal year 2027, the company said it now expects total revenue of $90 billion, significantly beating analysts’ predictions of $86.32 billion.
For FY26, the company said it expects capital expenditures of $50 billion, in line with previous guidance.
For the fourth-quarter (Q4) of 2026, Oracle said that it expects revenue to increase 18% to 20% in constant currency, or 19% to 21% in US dollars. Specifically, the company expects its total cloud revenue to grow between 44% to 48% in constant currency, and 46% to 50% in USD.
Q3 Snapshot
For the third quarter (Q3) of 2026, Oracle said that quarterly revenues grew 22% to $17.2 billion, compared to Wall Street expectations of $16.91 billion. The company said that cloud revenues grew 44% to $8.9 billion, while software revenues were up 3% to $6.1 billion.
“This new AI Code Generation technology is enabling us to build more software in less time with fewer people. Oracle is now building more SaaS applications for more industries at a lower cost. AI code generation is making our SaaS application suites more competitive and more profitable,” Oracle said.
Meanwhile, the company posted earnings per share of $1.79, higher than the consensus of $1.7.
Retail Reaction
On Stocktwits, retail sentiment around ORCL shares jumped from ‘bullish’ to ‘extremely bullish’ over 24 hours. Meanwhile, message volumes spiked from ‘normal’ to ‘extremely high’ levels.
One bullish user anticipated a steep post-market rally, with a possible move to $190 after-hours.
Another bullish user said following the earnings, all negatives had been priced in, including SaaS scare for the company. The user also highlighted Oracle’s positives.
Shares of ORCL have declined more than 23% this year.
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