Overview

• US enterprise software provider's fiscal Q3 revenue rose 22% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q3 beat analyst expectations|

• Q3 remaining performance obligations at $553 billion from $523 billion in Q2, up 325% YoY

• Company attributes growth to demand for cloud computing and AI-related contracts

Outlook

• Oracle sees Q4 total revenue growth of 19% to 21% in USD

• Company expects Q4 cloud revenue growth of 46% to 50% in USD

• Oracle raises fiscal 2027 total revenue guidance to $90 bln

Result Drivers

• CLOUD INFRASTRUCTURE DEMAND - Q3 cloud infrastructure revenue rose 84% yr/yr, driven by demand for AI training and inferencing workloads

• AI-RELATED CONTRACTS - Large-scale AI contracts contributed to a 325% yr/yr increase in remaining performance obligations, with most equipment funded upfront by customers

• AI CODE GENERATION - Adoption of AI code generation technology enabled Oracle to develop more software with fewer people, expanding SaaS offerings and improving competitiveness

Company press release: ID:nPn3WvZg0a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Revenue	Beat	$17.20 bln	$16.91 bln (31 Analysts)
Q3 Adjusted EPS	Beat	$1.79	$1.70 (31 Analysts)
Q3 EPS		$1.27
Q3 Adjusted Net Income	Beat	$5.20 bln	$5 bln (28 Analysts)
Q3 Net Income		$3.70 bln
Q3 Adjusted Operating Income	Beat	$7.40 bln	$7.21 bln (30 Analysts)
Q3 Adjusted Operating Margin		43.00%
Q3 Capex (TTM)		$48.25 bln
Q3 Cloud Revenue		$8.90 bln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 33 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Oracle Corp is $250.00, about 65% above its March 9 closing price of $151.56

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 27 three months ago

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