Oracle's Strongest Quarter: AI Push, Debt Concerns

Oracles fiscal third quarter results for 2026 show a strong performance, with total revenue surging 22% to $17.2 billion, driven by a 44% increase in cloud revenue to $8.9 billion. The standout was infrastructure-as-a-service, up 84% year over year, and AI infrastructure revenue soared 243%. This growth is backed by a massive backlog, including a $300 billion, 5-year compute deal with OpenAI. However, Oracles expansion is funded by significant debt, raising concerns about risk. Despite this, profitability impressed, with gross margins on capacity hitting 32% and adjusted earnings per share rising 21% to $1.79. Oracles full-year 2027 revenue forecast was also raised to $90 billion. While Oracles stock has lagged its AI rivals, the backlog is real and AI demand remains strong, making it a potential buy for those willing to balance the leverage risks. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/370f4d6da8dee72f