Oracle’s stock surged as much as 10% in after-hours trading after reporting quarterly earnings that exceeded analyst expectations. The jump was driven by a massive $553 billion backlog, which grew over four times year-over-year due to strong demand for AI infrastructure. Cloud revenue grew 44%, with infrastructure sales jumping 84%, and the company raised its fiscal 2027 revenue guidance.
Oracle’s shares climbed significantly following a quarterly financial report that surpassed Wall Street forecasts. Adjusted earnings per share were $1.79 against a $1.70 consensus, while revenue reached $17.19 billion, beating the $16.91 billion estimate.
Total cloud revenue hit $8.9 billion, a 44% increase, with infrastructure specifically contributing $4.9 billion, showcasing 84% growth. The company also raised its fiscal 2027 revenue guidance to $90 billion, a figure above prior forecasts and analyst consensus.
A key driver was the company’s remaining performance obligations, which reached $553 billion. Larry Ellison, the co-founder and executive chairman, stated on the earnings call, “Thank God we have these coding tools now that allow us to build a comprehensive set of software, agent-based software, to implement, to automate a complete ecosystem like healthcare or financial services.”
Oracle linked the backlog growth to large-scale AI contracts, noting most of the increase related to such deals. The company explained, “Most of the increase in RPO in Q3 related to large scale AI contracts where Oracle does not expect to have to raise any incremental funds to support these contracts.”
The company acknowledged restructuring its product development teams, citing efficiency gains from AI code generation technology. It also directly refuted recent media reports regarding its Stargate data center project in Abilene, Texas, asserting operations were proceeding at a record-breaking pace.
Oracle pointed to its biggest AI cloud customers having recently strengthened their financial positions, a nod toward OpenAI‘s $110 billion funding round backed by Amazon and Nvidia. The company plans to invest $50 billion into infrastructure for the full fiscal year.
