Oracle shares higher by double digits: SAP rival’s sales and profits are better than expected

Oracle posted earnings per share of $1.79 in the third quarter of its fiscal 2026, topping last year’s figure of $1.02 per share. Oracle therefore earned more than the market had expected; analysts’ estimates for EPS had previously been $1.70. The bottom line is that the group earned almost $3.7 billion after $2.94 billion a year earlier.

Meanwhile, experts had predicted a value of 16.92 billion US dollars for sales, but the SAP competitor actually generated 17.2 billion US dollars in the reporting quarter after 14.13 billion US dollars in the comparable period of the previous year.

In the third quarter of the financial year, the group generated sales of $4.9 billion in data center business (IaaS – Infrastructure as a Service), which is more than analysts expected on average. Total consolidated sales also exceeded the consensus estimate. The company is now more confident about its sales development for the year as a whole.

In addition, revenue from the cloud business rose 44 percent year-on-year to $8.9 billion (7.7 billion euros) in the third quarter, as the company announced on Tuesday after the US stock market closed.

The tech group Oracle can convert its high investments in AI infrastructure into sales growth, contrary to the doubts on the stock market. The company pointed to an order backlog that is expected to bring in future sales of $553 billion – more than four times as much as a year earlier. In the third quarter, this figure increased by 29 billion, most of which, according to the company, were large contracts for AI technology. Oracle does not expect to have to take on additional debt of its own: Either the contracts are secured by advance payments from customers or the customers bring the AI ​​graphics computing chips (GPU) they have purchased themselves.

The largely tech billionaire Larry Ellison The controlled group is working, among other things, on an artificial intelligence infrastructure project costing hundreds of billions of dollars with the ChatGPT developer OpenAI.

Oracle shares are taking off

In premarket trading on the NYSE, Oracle shares were up 9.39 percent at $163.43.

If the price increase persists in the middle of the week, the shares would continue to stabilize. Since the record high of almost $346 in September, they had collapsed by 60 percent to around $135 by the beginning of February.

The reasons were general market concerns that corporations would overextend themselves financially when building the infrastructure necessary for AI operations. In addition, Oracle is heavily dependent on ChatGPT developer OpenAI. Both companies reached an agreement last year that would give OpenAI access to Oracle’s data center capacity for $300 billion.

Oracle also has to compete in the infrastructure business with the top dogs Amazon Web Services (AWS), Microsoft Azure and GoogleCloud Platform (GCP), all of which have deep pockets./mis

Jefferies keeps Oracle at ‘Buy’ – target $320

According to quarterly figures, the analysis firm Jefferies left Oracle at “Buy” with a price target of $320. The software company performed strongly and provided clear evidence that its AI infrastructure strategy is leading to lasting orders and sales, wrote Brent Thill in his commentary on Wednesday. The risk-reward profile of the shares remains positive.

Editorial staff at finanzen.net with material from dpa-AFX

Selected leverage products on Oracle

With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the leverage you want and we will show you suitable open-end products on Oracle

The leverage must be between 2 and 20

Advertising