Oracle Q3 Revenue Jumps 22% to $17.2B, RPO Soars to $553B
Oracle's third-quarter revenue rose 22% to $17.2 billion with adjusted EPS climbing 21% to $1.79, while multicloud database and AI infrastructure revenue surged 531% and 243% year-over-year, driving a remaining performance obligation of $553 billion, up 325% year-over-year. The company raised fiscal 2027 revenue guidance to $90 billion but reported negative free cash flow of $24.7 million, carries a debt-to-equity ratio of about 3.3 and an interest coverage ratio near 5x, and trades at 21.4x P/E and a 1.01x PEG.
1. Third-Quarter Financial Results
Oracle reported third-quarter revenue of $17.2 billion, up 22% year-over-year, and adjusted earnings per share rose 21% to $1.79, marking the strongest organic growth in over 15 years.
2. Infrastructure Business Momentum
Multicloud database revenue surged 531% year-over-year and AI infrastructure revenue climbed 243%, driven by collaborations with major cloud providers and accelerated enterprise demand for scalable database and compute services.
3. Backlog Growth and Guidance
Remaining performance obligations reached $553 billion, up 325% from a year ago, and management raised fiscal 2027 revenue guidance to $90 billion, underpinned by a robust backlog of multicloud and AI contracts.
4. Balance Sheet and Valuation Metrics
The company reported negative free cash flow of $24.7 million, carries a debt-to-equity ratio of approximately 3.3 and an interest coverage ratio near 5x, while trading at 21.4x P/E and a 1.01x PEG ratio.