Oracle Beats Earnings Expectations on AI Demand as Surging Cloud Revenue Lifts Shares

Oracle has aggressively expanded Oracle Cloud Infrastructure in recent years to meet demand from companies including OpenAI and Meta for computing power to train and run AI models, challenging Amazon, Microsoft and Google. Although investors remain concerned about heavy spending and AI's impact on its SaaS business, Oracle continues to view cloud capacity as critical to its long-term competitiveness.

Oracle reported fiscal third-quarter results in March 2026 that beat market expectations for revenue and profit, while cloud infrastructure revenue jumped 84% from a year earlier. Its shares rose more than 10% at one point in after-hours trading and gained as much as about 11% in premarket trading the next day. The company maintained its $50 billion capital expenditure budget for the current fiscal year and expects AI demand to continue improving operating efficiency and driving cloud business growth.