Oracle (ORCL) Stock: AI Cloud Backlog Hits $553 Billion as Revenue Surges

TLDR

• Oracle Q3 FY2026 revenue rose 22% year over year to $17.2 billion, beating analyst estimates
• Cloud revenue jumped 44% to $8.9 billion; Oracle Cloud Infrastructure grew 84% to $4.9 billion
• AI infrastructure revenue surged 243%, and the contracted backlog soared 325% to $553 billion
• Institutional investors now own 42.44% of ORCL, with analyst consensus at “Moderate Buy” and an average price target of $261.46
• Oracle stock opened at $189.76 on Friday, up 0.86%, with a 52-week range of $134.57 to $345.72

Oracle reported fiscal Q3 2026 revenue of $17.2 billion, up 22% year over year, beating analyst expectations of $16.91 billion. Non-GAAP EPS came in at $1.79, topping the consensus estimate of $1.71.

Oracle Corporation, ORCL

Cloud revenue was the headline number, climbing 44% to $8.9 billion. Oracle Cloud Infrastructure led the charge, growing 84% to $4.9 billion in the quarter.

The AI-related numbers were even more striking. AI infrastructure revenue jumped 243% from the same period a year ago. Multicloud database revenue surged 531%.

Perhaps the biggest data point was the remaining performance obligation — Oracle’s contracted backlog — which rose 325% to $553 billion. That’s a forward revenue pipeline that most companies would envy.

Oracle raised its fiscal 2027 revenue target, giving investors a clearer long-term growth path. The company set Q4 2026 EPS guidance at $1.96 to $2.00.

Institutional Money Is Moving In

The growth story isn’t going unnoticed on Wall Street. Axxcess Wealth Management raised its Oracle position by 870% in Q4, purchasing 602,230 additional units for a total holding worth around $128 million.

Jennison Associates increased its stake by 2,062% in Q3, now holding over 9.2 million units. Vanguard added 5.8 million more in Q4, bringing its total to over 174 million. Institutional investors now own 42.44% of the company.

Analyst sentiment has also been constructive. Citigroup raised its price target to $320 with a “buy” rating. Oppenheimer moved its target from $210 to $235 with an “outperform.” The consensus across analysts sits at “Moderate Buy” with an average price target of $261.46.

ORCL opened at $189.76 on Friday, up 0.86%. The stock’s 50-day moving average sits at $165.70, and the 200-day average is $179.91. The 52-week range runs from $134.57 to $345.72.

The Spending Question

The one issue keeping some investors cautious is cash flow. Oracle is spending heavily on data center capacity and computing infrastructure to meet AI demand. That spending has pressured free cash flow and kept some analysts on the sidelines.

Wedbush has stayed bullish, arguing investors are underpricing Oracle’s demand visibility. Others point to the 84% growth in OCI as evidence the spending is already converting into real revenue.

Oracle’s NetSuite unit also posted solid numbers, with revenue of around $1.1 billion, up 14%, driven in part by AI features.

Oracle declared a quarterly dividend of $0.50 per unit, paid on April 24. That’s a $2.00 annualized payout and a yield of roughly 1.1%.

The company’s Q4 2026 earnings report will be the next key test, with investors watching cloud margins, data center capacity updates, and progress toward the $90 billion FY2027 revenue target.

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