Oracle (NYSE:ORCL) saw its shares drop more than 4% intra-day today after reporting third-quarter results that fell short of analyst expectations. However, a massive surge in bookings and an optimistic long-term outlook suggest strong demand for the company’s cloud and AI-driven services.
For the quarter, Oracle posted adjusted earnings per share of $1.47 on revenue of $14.13 billion, missing consensus estimates of $1.49 EPS and $14.39 billion in revenue.
Despite the earnings shortfall, Oracle reported an unprecedented spike in bookings, with remaining performance obligations (RPO) rising 62% year-over-year to $130 billion. This surge reflects record demand for the company’s cloud computing and enterprise software solutions.
Chairman Larry Ellison highlighted that Oracle remains on track to double its data center capacity by the end of the calendar year, further strengthening its AI and cloud infrastructure.
Looking ahead, Oracle provided a bullish forecast, expecting revenue to grow by 15% in fiscal 2026 and accelerate to 20% in fiscal 2027—both ahead of market projections. CEO Safra Catz emphasized that demand for Oracle’s AI-powered cloud services remains robust, reinforcing confidence in the company’s long-term growth trajectory.