Oracle Projects $90B 2027 Revenue, RPO Soars 325% to $553B
Oracle raised its fiscal 2027 revenue forecast to $90 billion, topping analyst estimates of $86.6 billion and driving a roughly 10% premarket share rally. Third-quarter remaining performance obligations surged 325% year-on-year to $553 billion as the company guided Q4 adjusted EPS of $1.96-$2.00, above forecasts.
1. Upbeat Guidance and Stock Rally
On March 11, Oracle shares jumped about 10% premarket after the company raised its fiscal 2027 revenue forecast to $90 billion, surpassing analysts’ $86.6 billion estimate. It also projected Q4 adjusted earnings per share between $1.96 and $2.00, above the $1.94 consensus.
2. RPO Growth and AI Infrastructure Investments
Oracle’s remaining performance obligations climbed 325% year-on-year to $553 billion, reflecting robust contracted revenue. The company has invested billions in AI data centers supporting partners such as OpenAI and Meta, positioning itself as a leveraged play on AI infrastructure buildout.
3. SaaS Strategy and Market Risks
Executive chairman Larry Ellison emphasized that AI coding tools will not diminish demand for Oracle’s software as small, AI-assisted teams develop new SaaS products. Nonetheless, investors remain focused on execution risks, margin pressures and competition within Oracle Cloud Infrastructure.