Oracle Rises Over 11% Pre-Market as Earnings Guidance Beats Expectations

TradingKey - At 5:00 AM ET, Oracle ( ORCL) shares surged nearly 11% in pre-market trading after the company reported Q3 earnings that beat expectations. As of publication, the gain has narrowed to 10%.

The earnings report showed that Oracle's adjusted revenue for the third fiscal quarter was $17.19 billion, up 22% year-over-year; non-GAAP earnings per share were $1.79, up 21% year-over-year, marking the first time in 15 years that both metrics grew by more than 20%.

The cloud business emerged as the biggest highlight, with total revenue of $8.9 billion, up 44% year-over-year. Within this, cloud infrastructure (IaaS) revenue skyrocketed 84%, further accelerating from the previous quarter's 68% growth and far exceeding market expectations.

Meanwhile, Oracle provided strong long-term guidance, forecasting fiscal year 2026 revenue of $67 billion and revising fiscal year 2027 revenue upward to $90 billion, with the annual growth rate expected to jump from the current 17% to over 34%.

Notably, Oracle's stock price had been under continuous pressure prior to this earnings release, with a cumulative decline of over 50% since September 2025 and a 23% drop year-to-date in 2026, while the S&P 500 Index fell by less than 1% over the same period.

Wall Street had previously expressed concerns that Oracle's legacy software business might be replaced by artificial intelligence, while also harboring doubts regarding the massive debt the company incurred for AI infrastructure and its negative free cash flow of $13.18 billion over the past 12 months.

This better-than-expected performance may temporarily soothe investor jitters.