Oracle Corp. (NYSE:ORCL) reported upbeat financial results for the third quarter of fiscal 2026 on Tuesday after the market closed.
Oracle posted third-quarter revenue of $17.19 billion, beating analyst estimates of $16.91 billion, according to Benzinga Pro. Adjusted earnings grew 21% year-over-year to $1.79 per share, beating analyst estimates of $1.71 per share.
Oracle expects fourth-quarter revenue to grow 18% to 20% on a year-over-year basis, roughly in line with estimates. Total cloud revenue is expected to be up between 44% and 48%. Adjusted earnings per share are expected to be between $1.96 and $2.00 in the fourth quarter, versus estimates of $1.95.
The company continues to expect fiscal 2026 revenue of $67 billion. Oracle also guided for fiscal 2027 revenue of $90 billion versus estimates of $86.63 billion.
“The demand for cloud computing for AI training and inferencing continues to grow faster than supply. Furthermore, some of the largest consumers of AI Cloud capacity have recently strengthened their financial positions quite substantially. These market dynamics enable Oracle to comfortably meet and likely exceed our revenue growth rate forecast for FY27 and beyond,” the company said.
Oracle shares gained 10.1% to trade at $164.52 on Wednesday.
These analysts made changes to their price targets on Oracle following earnings announcement.
- DA Davidson analyst Gil Luria maintained Oracle with a Buy and raised the price target from $180 to $200.
- JP Morgan analyst Mark Murphy upgraded Oracle from Neutral to Overweight and lowered the price target from $230 to $210.
- BMO Capital analyst Keith Bachman maintained the stock with an Outperform rating and cut the price target from $205 to $200.
- Barclays analyst Raimo Lenschow maintained the stock with an Overweight rating and raised the price target from $230 to $240.
Considering buying ORCL stock? Here’s what analysts think:
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