Oracle Shares Climb On Upgraded Outlook After Strong Q3 Results

(RTTNews) - Shares of Oracle Corp. were gaining around 12 percent in the overnight trading, and are currently up 10 percent in the pre-market activity on the NYSE, after the tech major said it expects strong revenue growth in its fourth quarter, and raised revenue outlook for fiscal 2027. The company also maintained revenue view for fiscal 2026, after reporting significantly higher results in its third quarter.

Regarding the quarterly results, the company noted that the latest quarter was the first quarter in over 15 years where organic total revenue and adjusted earnings per share both grew at 20 percent or more.

Looking ahead for its fourth quarter, Oracle projects adjusted earnings per share to grow between 15 percent to 17 percent to a range of $1.96 and $2.00.

Total revenues are expected to grow between 19 percent and 21 percent on a reported basis, and 18 percent to 20 percent in constant currency.

Total Cloud revenue is expected to grow in the range of 46 percent to 50 percent on a reported basis, and between 44 percent to 48 percent in constant currency.

Further, for fiscal year 2026, the company continues to expect revenue of $67 billion and capital expenditures of $50 billion.

For fiscal year 2027, Oracle raised total revenue guidance to $90 billion.

In addition, the board of directors declared a quarterly cash dividend of $0.50 per share of outstanding common stock. The dividend will be paid on April 24 to stockholders of record as of the close of business on April 9.

In its third quarter, Oracle's net income available to shareholders came in at $3.70 billion, higher than $2.94 billion last year. Earnings per share climbed 24 percent to $1.27 from $1.02 a year ago.

Adjusted net income was $5.20 billion or $1.79 per share, compared to $4.23 billion or $1.47 per share a year ago.

Operating income was $5.46 billion, a growth of 25 percent from last year. Operating margin improved to 32 percent from 31 percent a year ago. Adjusted operating income was $7.38 billion, up 19 percent year-over-year. Adjusted operating margin, meanwhile, dropped to 43 percent from 44 percent a year ago.

The company's revenue for the period rose 21.7 percent to $17.19 billion from $14.13 billion last year. Revenue grew 18 percent in constant currency.

Cloud revenues were up 44 percent to $8.91 billion, and Software revenues grew 3 percent to $6.1 billion.

Cloud Infrastructure revenue surged 84 percent, Oracle Cloud Database revenue went up 35 percent, and Multicloud Database revenue soared 531 percent.

In the quarter, Cloud Application revenue grew 13 percent, and the growth was 17 percent in Fusion Cloud ERP revenue and 14 percent in NetSuite Cloud ERP revenue.

Remaining Performance Obligations, or RPO, ended the quarter at $553 billion, up 325 percent from last year. In the overnight trading, Oracle shares were gaining arouns 11.8 percent, after closing Tuesday's regular trading 1.4 percent lower, at $149.40.

In pre-market activity on the NYSE, the shares are trading at $164.46, up 10 percent.

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