Oracle Guides Q3 Cloud Growth 40–44% as Barclays Cuts Target to $230
Oracle forecast fiscal Q3 non-GAAP EPS of $1.70–1.74, up 16–18% year over year, and guided cloud revenue growth of 40–44% to roughly $8.84 billion; Remaining Performance Obligations surged 438% to $523 billion. Barclays cut its price target to $230 from $310, warning of near-term margin pressure from AI capacity ramp costs.
1. Fiscal Q3 Earnings and Cloud Guidance
Oracle expects fiscal third-quarter non-GAAP EPS of $1.70–1.74, reflecting 16–18% year-over-year growth, and forecasts cloud revenue to rise 40–44% to about $8.84 billion, in line with consensus forecasts.
2. RPO Surge and Infrastructure Momentum
Remaining Performance Obligations jumped 438% year over year to $523 billion, driven by new commitments from Meta, NVIDIA and others, while OCI GPU-related revenues grew 177%, supported by AI data center deployments across multiple states and the on-premise release of AI Database 26ai.
3. Barclays Price Target Cut and Margin Outlook
Barclays reduced its price target to $230 from $310, citing near-term margin pressure from upfront costs and lease expenses tied to accelerated AI infrastructure capacity ramps, even as it maintains an Overweight view on Oracle’s long-term AI revenue momentum.