U.S. software corporations Oracle posted results that beat market forecasts, sending its share price up about 9% in after-hours transaction.
On the 10th (local time), Oracle disclosed that revenue for the third quarter of the fiscal year (December last year to February this year) rose 22% from a year earlier to $17.19 billion (about 25 trillion won). That exceeded the $16.91 billion forecast compiled by market research firm LSEG. Net income for the same period was $3.72 billion ($1.27 per share), up from $2.94 billion ($1.02 per share) a year earlier.
In particular, the cloud institutional sector, which accounts for more than half of total revenue, led the improvement. Oracle's cloud institutional sector revenue, including infrastructure and software as a service (SaaS), rose 44% on-year to $8.9 billion. That topped securities analysts' forecast of $8.85 billion. Notably, cloud infrastructure revenue among them was $4.9 billion, up 84% from a year earlier.
Adjusted earnings per share (EPS) also rose 21% from a year earlier to $1.79, beating the market expectation of $1.70.
Oracle said of the quarter, "For the first time in about 15 years, both total revenue and EPS grew more than 20% in dollar terms."
The company also guided 2027 fiscal year (March 2026–February 2027) revenue at $90 billion. That is $1 billion higher than before and above the $86.6 billion analyst estimate compiled by LSEG.
However, Oracle's share price has fallen more than 50% from the peak in September last year on concerns about a large liability burden from expanding artificial intelligence (AI) investment and competition in AI infrastructure.
Oracle co-founder and chief technology officer Larry Ellison said on the earnings call, "As AI-based code-generation tools have advanced recently, the way software is developed itself is changing," adding, "Thanks to these technologies, we have been able to build a software ecosystem that automates entire industries, and Oracle will shake up the market amid this change."
Oracle also said it plans to raise $45 billion to $50 billion this fiscal year to expand cloud infrastructure. The company plans to secure more than 10 gigawatts (GW) of computing power over the next three years. Oracle is also pursuing a data center project for OpenAI in Abilene, Texas.