Catenaa, Wednesday, March 11, 2026- Oracle stock surged after the company reported better-than-expected third-quarter results and revised its fiscal 2027 revenue higher to $90 billion.
Investors welcomed the news, with shares of Oracle rising over 9%. Analysts took the improved 2027 outlook as a positive, though some also noted the risk that a chunk of Oracle’s fortunes is tied to OpenAI.
For the quarter, Oracle saw earnings per share (EPS) of $1.79 on revenue of $17.19 billion, above analysts’ expectations of EPS of $1.70 on revenue of $16.9 billion. The company reported $1.47 billion and $14.1 billion in the same period last year.
Oracle’s cloud segment brought in $8.9 billion versus expectations of $8.8 billion. Cloud infrastructure saw sales of $4.9 billion, ahead of estimates of $4.74 billion.
Oracle’s capital expenditures have ballooned tremendously over the last year, jumping as much as 269% in the first quarter to $8.5 billion, and it expects to see full-year capital expenditures of $50 billion.
Oracle stock has fallen steeply. After climbing to a high of $345.72 in September, the stock was trading at $149 as of Tuesday afternoon. Shares are now off 46% over the last six months and 16% since the start of the year.
William Blair analyst Sebastien Naji offered a similar take on the risk posed by Oracle’s OpenAI contract.
“Risks to our rating include customer concentration (with OpenAI representing more than $300 billion of [remaining performance obligations (RPO)]); weaker-than-expected performance from Oracle’s cloud and autonomous database products; increased competition across database, application, and cloud businesses; and lower-than-expected margins and free cash flow,” he wrote in a note.
