Oracle Stock Surges 8.7% on Strong Earnings and Cloud Growth

Oracle's shares jumped 8.7% after reporting fiscal third-quarter earnings that surpassed analyst expectations. Adjusted earnings per share reached $1.79, beating the $1.70 consensus, while revenue climbed to $17.19 billion, exceeding forecasts of $16.91 billion. The company's cloud and AI-driven growth trajectory fueled investor optimism.

Guidance for the fiscal fourth quarter remained robust, with adjusted EPS projected between $1.92 and $2.00 in U.S. dollars. Total revenue is expected to grow 19% to 21%, while cloud revenue could surge as much as 50%. The standout figure was remaining performance obligations, which soared 325% year-over-year to $553 billion, driven largely by AI-related contracts.

Oracle emphasized that most AI deals won't require additional fundraising, as equipment costs are often covered upfront—either through customer prepayments or direct GPU procurement by clients. The market's reaction underscores growing confidence in Oracle's cloud infrastructure expansion and AI monetization capabilities.