Oracle's stock has surged 24% recently, recovering from a low of $138.09. The company secured a classified AI deal with the U.S. Department of Defense and established significant partnerships, contributing to a robust earnings report. Q3 FY2026 showed revenue of $17.19 billion and a notable increase in cloud infrastructure revenue. Remaining Performance Obligations reached $553 billion, supporting optimistic revenue growth projections. Oracle's unique approach to monetizing AI sets it apart from competitors, with substantial contracts signed.
"The most recent leg up came on May 4, when Oracle secured a classified AI deal with the U.S. Department of Defense, sending shares up roughly 6%. That followed a $1.65 billion six-year supply agreement with Australian modular data center maker Datapod and a 1.4 GW data center facility partnership with DTE Energy in Michigan."
"Remaining Performance Obligations finished Q3 at $553 billion, up 325% year over year. That is contracted revenue already on the books. It underwrites Oracle's Q4 FY2026 guidance of 19% to 21% total revenue growth and 46% to 50% cloud revenue growth, with non-GAAP EPS of $1.96 to $2.00."
"Oracle is monetizing AI capacity differently than its hyperscaler peers. CEO Clay Magouyrk noted on the call that the company has signed more than $29 billion of contracts."
Read at 24/7 Wall St.
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