Oracle (ORCL) posted better than forecasted quarterly earnings Tuesday evening, spurring its stock as much as 15% higher entering Wednesday. At press time, the stock is up over 9% after the company beat Wall Street’s expectations on the top and bottom lines for its Q3 earnings.
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.
The last several months have been difficult for Oracle (ORCL) stock investors, as its stock has fallen drastically since last Fall. After climbing to a high of $345.72 in September, the stock was trading at $149 as of Tuesday afternoon. Shares are now down 54% over the last six months and 23% since the start of the year. The dip is largely attributed to a boom in capital expenditure and spending on AI-focused projects, something several other software and big tech companies have also done.
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Fortunately, the stock is beginning to rally thanks to the latest earnings and guidance for the next fiscal year. Indeed, Oracle raised its 2027 revenue guidance to $90 billion. The AI infrastructure company is spending tons of cash on data centers, although Wall Street remains mixed on the decision. Oracle’s capital expenditures have surged over the last year, jumping as much as 269% in the first quarter to $8.5 billion. Fortunately, Oracle expects to balance that out with heightened revenue forecasted for the next year. The company expects to see full-year capital expenditures of $50 billion.