Oracle (NYSE:ORCL) delivered third-quarter fiscal 2026 results on Tuesday that exceeded Wall Street expectations, bolstered by a massive wave of demand for its artificial intelligence (AI) cloud infrastructure.
Total revenue rose 22% to $17.2 billion, while the company’s pivotal cloud division continued its rapid ascent, climbing 44% to $8.9 billion.
The quarter’s most striking metric was the Remaining Performance Obligations (RPO)—a measure of contracted future revenue—which skyrocketed 325% to $553 billion.
Management attributed this exponential growth to several large-scale AI contracts, including its ongoing partnership with OpenAI.
To support the infrastructure required for these commitments, Oracle has raised $30 billion of its planned $50 billion in capital through investment-grade bonds and mandatory convertible preferred stock.
Reflecting this optimism, Oracle reaffirmed its fiscal 2026 revenue guidance of $67 billion and capital expenditures of $50 billion.
More notably, the company raised its fiscal 2027 revenue target to $90 billion, signaling a belief that the current AI build-out cycle has a multi-year runway.
Oracle also declared a quarterly dividend of $0.50 per share, maintaining its commitment to shareholder returns even as it executes the largest investment cycle in its history.
On the bottom line, Oracle reported GAAP earnings per share of $1.27, a 24% increase, while non-GAAP earnings reached $1.79 per share.
Despite the strong growth, interest expenses rose 32% to $1.18 billion as the company manages a total debt load that has now surpassed $100 billion.