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Is Oracle’s Pre-Market Pop Just The Beginning?
Oracle's $553 billion AI backlog, up 325% year-over-year, underpins raised 2027 sales guidance to $90 billion amid strong enterprise demand and a cash-flow-friendly hardware strategy.
- Following its third-quarter results, Oracle, enterprise software and cloud company, raised its FY2027 sales guidance to $90 billion after reporting revenue of $17.2 billion and non-GAAP EPS of $1.79.
- The surge in backlog came as Remaining Performance Obligations reached $553 billion, up 325% last year, mostly from large-scale AI contracts funded by customer prepayments and customer-supplied GPUs.
- Co-CEO Mike Sicilia said 'I do think that AI tools and their coding capabilities would be a threat if we weren't adopting them, but we are, and very rapidly' as cloud infrastructure grew 84% to $4.9 billion, with total cloud revenue at $8.9 billion.
- Shares responded with Oracle stock rising 12% Wednesday morning as Barclays raised its price target to $240 from $230, easing concerns about capex and financing, analysts said.
- Longer-Term value depends on execution, as non-current debt of $124.7 billion and negative free cash flow of $24.74 billion highlight financing risks, despite strong cash flow and backlog.
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Oracle can self-fund AI capex without hitting credit markets, DCLA says
Quick Read Oracle (ORCL) reported Q3 FY2026 IaaS cloud infrastructure revenue surging 84% year over year to $4.89 billion, with Remaining Performance Obligations hitting $553 billion, up 325% year over year. Nvidia (NVDA) and CoreWeave (CRWV) both gained on the positive signal, with CoreWeave jumping 8.7% on March 11, as Oracle’s ‘bring your own chips’ model allows customers to prepay or supply their own GPUs, reducing Oracle’s capital deployme…
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Coverage Details
Total News Sources11
Leaning Left1Leaning Right1Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 17%
C 67%
R 16%
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