Oracle sees strong growth from AI data centers

Shares of Oracle jumped 8.3% in extended trading after the company reported strong quarterly results and raised its long-term revenue outlook, driven by booming demand for artificial intelligence infrastructure.

The software giant posted third-quarter revenue of $17.19 billion, beating the $16.91 billion analyst estimate. It also lifted its fiscal 2027 revenue forecast to $90 billion, above Wall Street’s $86.6 billion projection.

A key demand indicator, remaining performance obligations (RPO), which shows future revenue, surged 325% year over year to $553 billion, topping estimates. It reflects the large AI infrastructure contracts.

Growth was powered by Oracle’s cloud segment. Cloud revenue rose 44% to $8.9 billion, while cloud infrastructure sales jumped 84% as companies increased spending on AI computing.

Oracle is expanding data centers to handle AI workloads for partners such as OpenAI and Meta, competing with cloud rivals AWS and Microsoft Azure.

Co-founder and executive chairman Larry Ellison said AI coding tools help Oracle build new software faster with smaller engineering teams.

The company expects 19%–21% revenue growth next quarter and predicts cloud revenue will rise 46%–50%.