ORCL Earnings: Oracle Stock Spikes after Strong Q3 Results

FomoAnxiety · 2026-03-10T20:46:30+00:00

Oracle reported strong earnings for Q3 FY 2026, with EPS of $1.79 surpassing estimates. Revenue grew by 21.7% to $17.19 billion, driven by a 44% increase in Cloud revenue. Analysts predict continued growth, resulting in a Strong Buy consensus for ORCL stock.

FomoAnxiety

2026-03-10 20:46:30

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Shares of Oracle ORCL -1.43% ▼ gained in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2026. Earnings per share came in at $1.79, which beat analysts’ consensus estimate of $1.70 per share. In addition, sales increased by 21.7% year-over-year, with revenue hitting $17.19 billion. This beat analysts’ expectations of $16.92 billion.

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Notably, this marks the first time in more than 15 years that Oracle’s organic total revenue and non-GAAP earnings per share both grew by at least 20% in U.S. dollars during the same quarter. At the same time, Cloud revenue surged by 44% to $8.9 billion, while Software revenue rose by 3% to $6.1 billion. This means that the Cloud segment remains a major growth driver for the firm, as pictured below.

Moreover, Oracle’s remaining performance obligations rose dramatically to $553 billion, a 325% increase over the same period last year. Much of this growth was tied to large AI-related contracts, in which customers often either prepay for equipment or provide their own GPUs. As a result, Oracle does not need to raise additional capital to support those projects. Separately, the company recently announced plans to raise up to $50 billion in financing and has already secured $30 billion through bonds and convertible preferred stock, both of which were heavily oversubscribed.

Oracle’s Outlook

Oracle provided the following forward-looking guidance for Q4 2026

Revenue growth of 18% to 20% in constant currency, or 19% to 21% in USD.
Total Cloud revenue growth of between 44% to 48% in constant currency and 46% to 50% in USD.
Non-GAAP earnings per share of between $1.92 and $1.96 in constant currency, or between $1.96 and $2.00 in USD, compared to the consensus estimate of $1.69.

As you can see, the EPS outlook was much better than expected, which helped contribute to the after-hours price move.

Is ORCL Stock a Good Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on ORCL stock based on 26 Buys, six Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average ORCL price target of $260.28 per share implies 74.2% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.

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