Oracle reported mixed third-quarter results, falling short of Wall Street expectations despite strong growth in its cloud infrastructure segment driven by rising demand for artificial intelligence (AI) computing power. Revenue rose 6% year-over-year to $14.13 billion but missed the estimated $14.39 billion. Adjusted earnings per share were $1.47, below the projected $1.49.
The company’s cloud infrastructure revenue surged 49% annually to $2.7 billion, fueled by businesses shifting workloads to support AI projects. Cloud services revenue reached $11.01 billion (up 10%), accounting for 78% of total sales. Oracle CEO Safra Catz noted over $130 billion in remaining performance obligations from recent contracts, excluding its Stargate data center partnership with the U.S. government and tech firms like OpenAI.
Oracle plans to double annual capital expenditures to roughly $16 billion for data center expansions, including a Texas facility under the Stargate initiative. However, the company lowered fourth-quarter revenue growth guidance (8-10%) below analysts’ 11% estimate, citing investment losses and a 10% drop in licensing revenue.
The firm hiked its quarterly dividend to $0.50 per share but saw shares fall nearly 11% year-to-date amid mixed results.
Source: https://www.cnbc.com/2025/03/10/oracle-orcl-q3-earnings-report-2025.html