Oracle stock surged as much as 15% after posting stronger-than-expected third-quarter earnings. The company reported earnings per share of $1.79 on revenue of $17.19 billion, beating analyst forecasts. Its cloud infrastructure sales also exceeded estimates. Despite a steep stock decline over the last six months, Oracle raised its 2027 revenue guidance to $90 billion as it invests heavily in AI-focused capital expenditures.
Oracle stock jumped significantly following its third-quarter earnings report. Shares rallied as much as 15% after the company surpassed Wall Street expectations on both revenue and profit.
For the quarter, Oracle achieved earnings per share of $1.79 on revenue of $17.19 billion. Analysts had anticipated earnings per share of $1.70 on revenue of $16.9 billion.
The company’s cloud segment generated $8.9 billion, slightly above expectations. Cloud infrastructure sales reached $4.9 billion, ahead of estimates of $4.74 billion.
Oracle‘s stock had fallen drastically since last September. The stock was trading at $149 as of Tuesday afternoon, down 54% over six months.
This decline is largely attributed to increased spending on AI-focused projects. Several other software and big tech companies have similarly boosted capital expenditure.
The stock’s rally coincided with improved guidance for the next fiscal year. Oracle raised its 2027 revenue guidance to $90 billion.
The AI infrastructure company is spending substantial cash on data centers. Wall Street remains mixed on this strategic decision.
Oracle‘s capital expenditures surged 269% in the first quarter to $8.5 billion. The company expects full-year capital expenditures to reach $50 billion.
