Oracle reported $17.2 billion in revenue Tuesday, beat every estimate that mattered, and raised its fiscal 2027 forecast to $90 billion. Cloud infrastructure revenue grew 84%. Remaining performance obligations hit $553 billion, more than quadruple the year-ago figure. The stock jumped 10% after hours.
And buried in the fine print was a sentence that should change how you think about Oracle entirely.
"Most of the increase in RPO in Q3 related to large scale AI contracts where Oracle does not expect to have to raise any incremental funds to support these contracts as most of the equipment needed is either funded upfront via customer prepayments so Oracle can purchase the GPUs, or the customer buys the GPUs and supplies them to Oracle."
Read that again. Oracle's customers are buying the chips. Oracle racks them. This is the best quarter Larry Ellison's company has posted in a decade and a half, and the company spent a meaningful chunk of it explaining why it won't need to spend its own money.
Hyperscalers don't talk like that. Landlords do.
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