Oracle Stock Rises as Record Demand Boosts Backlog Despite Q3 Miss

Oracle Corporation (NYSE: ORCL) saw its stock rise 2.2% in after-hours trading on Monday, despite missing Wall Street expectations in its fiscal Q3 results.

For the quarter ending Feb. 28, Oracle reported adjusted earnings per share (EPS) of $1.47 on revenue of $14.13 billion, falling short of analyst estimates of $1.49 EPS and $14.39 billion in revenue. However, the tech giant’s strong order book fueled investor optimism.

CEO Safra Catz highlighted that Oracle’s $130 billion sales backlog is expected to drive a 15% revenue increase in fiscal 2026. She also noted the company’s growing remaining performance obligations (RPO), which surged 62% to $130 billion. Additionally, Oracle anticipates significant expansion in its AI training and inferencing businesses, particularly with its upcoming Stargate contract.

Chairman and CTO Larry Ellison emphasized record customer demand, stating that Oracle remains on track to double its data center capacity this year.

In a move to boost shareholder value, Oracle increased its quarterly dividend by 25% to $0.50 per share, or $2.00 annually, up from $1.60.

Analysts offered mixed reactions. Jefferies' Brent Thill described the results as “mixed,” noting that while backlog and capital expenditures exceeded expectations, IaaS and SaaS growth fell slightly below forecasts. Evercore ISI’s Kirk Materne pointed out the revenue and EPS miss but highlighted the “massive jump” in RPO, which doesn’t yet factor in the anticipated Stargate deal.

Despite the earnings shortfall, Oracle’s strong backlog and AI-driven growth plans suggest promising long-term potential, keeping investors engaged.