Oracle stock spikes as strong Q3 earnings ease AI buildout concerns

Seer Shares rose 9% on Wednesday after the company reported strong fiscal third-quarter earnings and reassured analysts that the company does not plan to take on any additional debt in 2026 beyond what was previously announced.

“Investing in AI infrastructure is capital-intensive, but our operating model is optimized to drive profitability,” CEO Clayton Magouyrk said on the company’s earnings call Tuesday.

The hyperscaler has cast doubt on the financing measures funding data center construction.

Last month, the company said it plans to reach $50 billion in revenue by 2026 through a combination of debt and equity, with no expectation of issuing additional bonds.

Magouyrk touched upon the company’s artificial intelligence infrastructure growth plans in the analyst call.

“Since then, we have signed more than $29 billion in contracts with multiple customers using this new model,” Magouyrk said. “The combination of bring your own hardware and up-front customer payments allows us to continue to expand without negative cash flow from Oracle.”

Magouyrk also noted that Oracle delivered 90% of its 400-megawatt data centers on or ahead of schedule in the third quarter.

AI bubble fears have hurt software stocks, including Oracle, which is down more than 50% from its all-time high in September and nearly 15% since the beginning of the year.

iShares Extended Technology-Software Sector ETF (IGV) It is down 18% so far in 2026.

Cloud revenue for the third quarter, including infrastructure and software as a service, Oracle reports $8.9 billionIt increased by 44% compared to last year.

Wall Street was generally bullish on the stock following the call.

“Oracle’s underlying AI and cloud numbers and accumulated data tell a very healthy and robust AI Revolution demand story,” Wedbush’s Dan Ives said in a note Tuesday.

The senior equity research analyst added that the report will be seen as “a huge relief for the software and technology sector.”