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Investing.com -- Oracle reported its fiscal third-quarter results on Monday, which fell short of Wall Street estimates, but its order book surged amid record demand.
Oracle Corporation (NYSE:ORCL) rose 2.2% in afterhours trading following the report.
For the three months ended Feb. 28, Oracle reported adjusted EPS of $1.47 on revenue of $14.13B, missing Wall Street expectations of $1.49 and $14.39B, respectively.
Oracle said it sees 15% 2026 revenue growth.
"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," CEO Safra Catz said. "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."
Remaining performance obligations (RPO), a gauge of booked revenue, climbed by 62% to $130B.
"We are on schedule to double our data center capacity this calendar year," said Oracle Chairman and CTO, Larry Ellison. "Customer demand is at record levels."
Oracle also raised its quarterly dividend by 25% to $0.50 per share, or $2.00 annually, up from $1.60.
Commenting on the results, Jefferies analyst Brent Thill highlighted, "ORCL delivered mixed results with backlog/capex well above and IaaS/SaaS growth slightly below. FY26 rev growth was guided to 15% y/y vs cons at 13%."
Evercore ISI's Kirk Materne notes, "Going to be some back/forth with bulls/bears as Oracle came in a bit shy on revenue/EPS vs. consensus, but the big story was the massive jump in RPO to $130bn, which does NOT include any benefit from Stargate."
(Yasin Ebrahim contributed to this report)
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