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Oracle Backs $50 billion CapEx Following Strong Earnings
Yahoo Finance· 2026-03-13 05:46
Core Insights - Oracle Corporation reported adjusted earnings of $1.79 per share for Q3 FY2026, exceeding the consensus estimate of $1.70, with revenue of $17.19 billion compared to expectations of $16.91 billion [1] - The company plans to raise between $45 billion and $50 billion in FY2026 to invest in cloud infrastructure, reflecting the increasing demand for AI infrastructure, as evidenced by a quadrupling of remaining performance obligations to over $553 billion year-over-year [2] - Oracle's capital expenditures are projected to reach $50 billion for FY2026, despite the cancellation of plans to expand its AI data center in Texas due to financing issues and changing needs from OpenAI [3] Financial Performance - Adjusted earnings per share for Oracle were reported at $1.79, surpassing the consensus estimate of $1.70 [1] - Revenue for the quarter was $17.19 billion, exceeding the expected $16.91 billion [1] Investment Outlook - 45 analysts cover Oracle, with 35 rating it as a Buy, 9 as a Hold, and 1 as a Sell, indicating strong market confidence [3] - The average price target for Oracle is $240, suggesting an upside potential of over 60.50% as of March 10 [3] Business Segments - Oracle operates through three main business segments: Cloud and License, Hardware, and Services, providing IT-related products and services to enterprises [4]