Oracle Q3 Earnings: Revenue Miss, EPS Miss, Backlog Booms 62%, Strong AI Growth Expected, Shares Climb

Oracle Corp ORCL reported third-quarter financial results after the market close on Monday. Here’s a look at the key metrics from the quarter.

Q3 Earnings: Oracle reported third-quarter revenue of $14.13 billion, missing the consensus estimate of $14.39 billion, according to Benzinga Pro. The company reported third-quarter adjusted earnings of $1.47 per share, missing analyst estimates of $1.49 per share.

Total revenue was up 6% year-over-year. Cloud revenue was up 23%, cloud infrastructure revenue was up 49%, cloud application revenue was up 9% and Fusion cloud revenue and NetSuite Cloud ERP revenue were both up 16% in the quarter.

Remaining performance obligations totaled $130 billion at the quarter’s end, up 62% year-over-year. Oracle ended the quarter with approximately $17.41 billion in cash and cash equivalents.

“We have now signed cloud agreements with several world-leading technology companies including OpenAI, xAI, Meta, NVIDIA and AMD. We expect that our huge $130 billion sales backlog will help drive a 15% increase in Oracle’s overall revenue in our next fiscal year beginning this June,” said Safra Catz, CEO of Oracle.

“And we expect RPO to continue to grow rapidly — as we look forward to signing our first Stargate contract — yet another big opportunity for Oracle to expand both its AI training and AI inferencing businesses in the near future.”

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Oracle’s board declared a quarterly cash dividend of 50 cents per share, payable on April 23 to shareholders of record as of April 10. The new dividend represents a 25% increase over the current quarterly dividend of 40 cents per share.

“We are on schedule to double our data center capacity this calendar year. Customer demand is at record levels. Our Database MultiCloud revenue from Microsoft, Google and Amazon is up 92% in the last three months alone. GPU consumption for AI training grew 244% in the last 12 months. And we are seeing enormous demand for AI inferencing on our customers’ private data,” said Larry Ellison, chairman and CTO or Oracle.

Oracle typically provides forward guidance on its earnings call with investors, which is set to kick off at 5 p.m. ET.

ORCL Price Action: Oracle shares were up 2.16% after hours, trading at $151.82 at the time of publication Monday, according to Benzinga Pro.

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