Oracle Corporation (ORCL, Financial), a major player in the technology sector, recently reported quarterly earnings that fell short of expectations. The company's revenue for the third fiscal quarter increased by 6% to $14.1 billion, missing the average analyst estimate of $14.4 billion. Additionally, its cloud business revenue also came in below forecasts, leading to a decline in Oracle's stock during after-hours trading.
Despite the shortfall, Oracle remains optimistic about its future. The company reported a significant rise in its remaining performance obligations, a key measure of future orders, which reached $130 billion as of February 28, up from $97.3 billion in the previous quarter. Looking ahead, Oracle projects a 15% revenue growth for the fiscal year starting in June and a 20% increase for the fiscal year 2027. These projections exceed analysts' average estimates of 13% and 14% growth, respectively.
Oracle has secured cloud agreements with several leading global technology companies, including OpenAI, xAI, Meta, NVIDIA, and AMD. These partnerships are expected to bolster Oracle's cloud business and drive revenue growth in the coming years.
