【AI+ORCL Performance】Oracle: Customers Bring Their Own GPUs, No Need for Additional Borrowing, Stock Price Once Rose 15%

Oracle (NYSE: ORCL) announced its fiscal Q3 results ending February 28, with total revenue of $17.19 billion, surpassing expectations of $16.91 billion, up 22% year-over-year. Cloud revenue, including Infrastructure and SaaS, reached $8.914 billion, exceeding estimates of $8.85 billion, up 44% year-over-year, accounting for 52% of total revenue, up from 44%. Cloud Infrastructure (OCI) revenue was $4.9 billion, an increase of 84%. Net income was $3.699 billion, with adjusted earnings of $5.201 billion, up 23%. Adjusted EPS was $1.79, beating expectations of $1.70.

Oracle’s remaining performance obligations (RPO) totaled $553 billion, up 5.7% quarter-over-quarter from $523 billion. The company emphasized that large AI contracts often involve prepayments or customer-supplied GPUs, so no additional debt is needed to support these specific agreements.

Oracle’s stock rose 15%, reaching a high of $171.76, and is currently trading at $165.93, up 11%.

The earnings report stated, “In February, we announced plans to raise up to $50 billion through debt and equity financing, and stated that we do not expect to issue any additional bonds exceeding this amount in the 2026 calendar year. Within days of this announcement, Oracle raised $30 billion through a combination of investment-grade bonds and mandatory convertible preferred stock, setting a record high subscription level and receiving significant oversubscription. Currently, we have not initiated the at-the-market equity offering portion of this financing plan.”

On Sunday, Oracle clarified rumors about terminating the expansion project at Abilene, Texas, with OpenAI, stating that Bloomberg’s report was incorrect. The two buildings in the park are now operational, and other parts are progressing normally.

Oracle has raised its revenue guidance for fiscal 2027 to $90 billion. It maintains its forecast of $67 billion for fiscal 2026 and capital expenditures of $50 billion.

Oracle co-founder, CTO, and Chairman Larry Ellison said during a conference call, “Thank God, we now have these development tools that allow us to build a complete ecosystem automation for healthcare, financial services, and more, based on agent-based software. That’s what Oracle is doing. That’s why we see ourselves as disruptors, and why we believe the ‘SaaS end times’ will come to others, not us.”

Oracle indicated that demand for cloud computing for AI training and inference continues to outpace supply. Additionally, some of the largest AI cloud resource customers have recently strengthened their financial positions significantly. These market dynamics enable Oracle to easily meet, and potentially surpass, our revenue growth forecasts for FY2027 and beyond.

The company stated that AI models used for generating computer code have become highly efficient. As a result, Oracle is restructuring its product development teams into smaller, more agile, and more productive units. This new AI code-generation technology allows the company to develop more software with fewer people and less time. Oracle is currently creating more SaaS applications across various industries at lower costs. AI code generation is making Oracle’s SaaS suite more competitive and more profitable.