By Katherine Hamilton

Oracle posted higher quarterly revenue and raised its sales outlook for fiscal 2027, as AI demand continues to outpace supply.

The cloud-computing company on Tuesday posted a profit of $3.72 billion, or $1.27 a share, in the fiscal third quarter, compared with $2.94 billion, or $1.02 a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $1.79, ahead of the $1.70 anticipated by analysts, according to FactSet.

Revenue rose 18% to $17.19 billion. Analysts surveyed by FactSet forecast revenue of $16.92 billion.

Oracle said it has been shrinking its product development teams because AI models have become more efficient, allowing the company to build more software with fewer people.

Demand for cloud computing for AI training and inference is continuing to grow faster than supply, Oracle said. Some of the biggest consumers of AI cloud capacity have also strengthened their financial positions recently, the company said.

Because of those dynamics, Oracle expects to meet and possibly exceed its revenue growth rate forecast for fiscal 2027 and beyond.

Oracle raised its revenue outlook for fiscal 2027 to $90 billion. It reaffirmed 2026 guidance.

The company expects revenue to grow 18% to 20% in the current fourth quarter, with adjusted earnings per share of $1.92 to $1.96.

Oracle said it raised $30 billion within days of its February announcement that it planned to raise up to $50 billion in debt and equity financing.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

March 10, 2026 16:23 ET (20:23 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.