Oracle Expected To Report $16 Billion Revenue In Q3-Can Its AI And Cloud Expansion End A Streak Of Revenue Misses?

Oracle Corp. (NYSE:ORCL) is set to report its fiscal third-quarter earnings on Tuesday.

Analysts Expect Strong Revenue Growth

Analysts expect Oracle to post third-quarter revenue of $16.9 billion, up from $14.13 billion in the same quarter last year, according to data from Benzinga Pro.

Wall Street also anticipates earnings per share of $1.55, compared with $1.47 a year earlier.

While Oracle has generally delivered strong profits, its revenue performance has been less consistent. The company has missed analyst revenue estimates in eight of the past 10 quarters, including the two most recent ones.

On the profit side, the track record is stronger. Oracle has beaten earnings expectations in three consecutive quarters and in eight of the last 10 overall.

Oracle's Last Earnings Report Beat Profit Expectations

During its previous quarterly report, Oracle posted second-quarter revenue of $16.06 billion, missing analyst estimates of $16.21 billion.

However, the company reported adjusted earnings of $2.26 per share, marking a 54% year-over-year increase and comfortably surpassing Wall Street expectations of $1.64 per share.

In December 2025, the company projected total cloud revenue growth of 37% to 41% in constant currency, while overall revenue is expected to increase between 16% and 18%. Oracle also forecast non-GAAP EPS growth of 12% to 14%.

Key Moves Since Oracle's Last Earnings

Since reporting its second-quarter results, Oracle has taken several major steps to expand its cloud and AI footprint.

Massive AI Infrastructure Funding Plan: In February 2026, Oracle said it expects to raise $45 billion to $50 billion to expand capacity for its cloud infrastructure. The company plans to fund the initiative through a mix of equity-linked securities, common equity offerings and senior unsecured bonds.

The investment is aimed at scaling its cloud platform to meet growing demand for AI workloads and data center capacity.

Major US Healthcare Cloud Contract: Oracle also secured a deal with the Centers for Medicare & Medicaid Services to host critical systems on its cloud platform.

Under the agreement, the agency will migrate select on-premises workloads to Oracle Cloud Infrastructure, using the company's FedRAMP High-authorized environment to meet strict federal security standards.

Defense Cloud Contract With US Air Force: Separately, Oracle won an $88 million task order from the United States Department of the Air Force to provide cloud services through its Cloud One program.

The contract supports highly sensitive workloads, including Top Secret and Special Access Program missions, and runs through December 2028.

Together, these developments highlight Oracle's strategy of expanding its cloud and AI capabilities while competing more aggressively for large government and enterprise infrastructure deals.

Price Action: In pre-market trading, Oracle shares rose 2% to $154.59. It closed Monday down 0.92% at $151.56, according to Benzinga Pro.

According to Benzinga Edge Stock Rankings, Oracle has been experiencing a downward price trend in the short, medium and long term. It's Value ranks in the 15th percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.