Oracle Predicts Strong AI Cloud Growth Despite Missing Q3 Expectations

The company reported lower-than-expected earnings but highlighted record cloud bookings and plans to double data center capacity.

Oracle's Q3 2025 revenue rose 6% year-over-year to $14.13 billion, but fell short of analysts' expectations of $14.39 billion.
The company reported adjusted earnings per share of $1.47, missing the consensus estimate of $1.49 by $0.02.
CEO Safra Catz announced a record $48 billion in cloud sales contracts, driving Remaining Performance Obligations (RPO) to over $130 billion, a 63% increase year-over-year.
Oracle plans to double its data center capacity in 2025 to meet surging demand for AI infrastructure, with significant growth in its cloud infrastructure and AI-related services.
The company raised its quarterly dividend by 25% to $0.50 per share and forecasted 15% revenue growth for fiscal 2026, supported by its AI-focused initiatives and the anticipated Stargate contract.