Among the four hyperscalers, $Oracle(ORCL.US) (ORCL) remains the most debated. Post-market, the company reported 3QFY26 (ended Feb) results. The print was mixed: database and compute capacity leasing under OCI stayed strong and re-accelerated, while GPM pressure was worse than expected, and both Capex and borrowings ramped faster than anticipated. Net-net, the quarter was broadly neutral as positi...
Among the four hyperscalers, $Oracle(ORCL.US) (ORCL) remains the most debated. Post-market, the company reported 3QFY26 (ended Feb) results. The print was mixed: database and compute capacity leasing under OCI stayed strong and re-accelerated, while GPM pressure was worse than expected, and both Capex and borrowings ramped faster than anticipated. Net-net, the quarter was broadly neutral as positives offset negatives. The post-market pop was driven by an FY27 revenue guide hike to 90bn from the prior 85bn. Details follow: 1) Core biz – OCI re-accelerated as expected: IaaS OCI revenue reached 4.89bn, up 81% YoY in cc, versus 66% last quarter, a clear acceleration. The YoY net revenue add also jumped 36% QoQ to a record high. The momentum is strengthening, which is a constructive signal. However, given elevated expectations, this was in line rather than a beat. 2) AI mix weighed on margins more than expected: As a corollary of OCI acceleration, Cloud + Software blended GPM (not disclosed separately) was ~68% this quarter, down 800bps YoY and worse than last quarter’s -590bps. This missed the Street. Assuming Software GPM held steady, Cloud GPM likely fell below 50%, with OCI GPM probably around the 30% area. 3) Leading indicator takes a ‘half-time’ breather: RPO, a proxy for new order intake, rose by ~30bn QoQ this quarter. After a blowout in Q1, incremental orders have trended lower for two straight quarters, with fewer big surprises. That said, the absolute add remains sizable, still roughly 6x this quarter’s OCI revenue. The level remains healthy. 4) Capex accelerated higher: A prerequisite for OCI growth, Capex hit 18.6bn this quarter, vs. 12bn last quarter, with another record QoQ net increase. The pace continues to climb. Capex exceeded total revenue for the first time. FCF has been negative for two consecutive quarters by roughly 10bn per quarter, implying heavy reliance on external financing under such cash burn. Management still guides FY26 Capex at 50bn, imp...
It's been a brutal start to 2026 for Oracle (ORCL 1.26%) investors. Down about 23% year to date and sitting near $149 per share just before its fiscal third-quarter earnings report, the tech stock had taken a massive beating. And its pullback from its 52-week high is even bigger. The company's narrative has been dominated by two opposing forces. On one hand, Oracle boasts a massive backlog driven ...
It's been a brutal start to 2026 for Oracle (ORCL 1.26%) investors. Down about 23% year to date and sitting near $149 per share just before its fiscal third-quarter earnings report, the tech stock had taken a massive beating. And its pullback from its 52-week high is even bigger. The company's narrative has been dominated by two opposing forces. On one hand, Oracle boasts a massive backlog driven by unprecedented demand for artificial intelligence (AI) computing. On the other hand, the company faces a staggering $50 billion in expected capital expenditures in fiscal 2026 to build out the data centers required to begin delivering on its contracts. So, is this apparent headwind of massive spending actually a problem if it's funding explosive growth, or should investors stay on the sidelines? Following the company's strong fiscal third-quarter update on Tuesday afternoon, let's take a closer look at the business to see if shares are a buy. Accelerating cloud infrastructure growth Oracle's third-quarter results showed the company executing. The tech company's fiscal third-quarter revenue rose 22% year over year to $17.2 billion. And this momentum is expected to persist. Management raised its fiscal 2027 revenue guidance to $90 billion. This top-line performance represents a notable milestone for the legacy database giant. As Oracle chief financial officer Doug Kehring explained in the company's earnings call, the period marked "the first quarter in over 15 years where both organic total revenue and organic non-GAAP [earnings per share] grew at 20% or better..." Driving this success, of course, is Oracle's cloud infrastructure business. The company's cloud infrastructure revenue surged 84% year over year to $4.89 billion during the quarter -- a sharp acceleration from the segment's 68% growth rate in fiscal Q2. Fueling this growth is an enormous pipeline of contracted demand. Oracle's remaining performance obligations (RPO), a metric that represents the value of contract...
Palmer Luckey, founder of Anduril Industries, during a Bloomberg Tech interview at Anduril's headquarters in Costa Mesa, California, Oct. 10, 2025. Kyle Grillot | Bloomberg | Getty Images Anduril acquired missile tracking and intelligence firm ExoAnalytic Solutions as it extends its reach into U.S. defense interests in space , the company announced on Wednesday. Through the acquisition, Anduril pl...
Palmer Luckey, founder of Anduril Industries, during a Bloomberg Tech interview at Anduril's headquarters in Costa Mesa, California, Oct. 10, 2025. Kyle Grillot | Bloomberg | Getty Images Anduril acquired missile tracking and intelligence firm ExoAnalytic Solutions as it extends its reach into U.S. defense interests in space , the company announced on Wednesday. Through the acquisition, Anduril plans to mobilize ExoAnalytic's sweeping network of telescopes and missile defense tracking to gather data that improves its ground and satellite capabilities. The defense tech firm is aiming to improve the Department of Defense 's visibility in space as it becomes a "war-fighting domain," said Gokul Subramanian, Anduril's senior vice president of engineering for software programs. "We believe the [Department of Defense] deserves the best catalog of everything going on in space across commercial and government-specific investments," he told reporters. "We want to be part of that solution for the warfighter." Read more CNBC tech news How the Iran war and rising energy prices are threatening semiconductor demand Kevin Mandia sold his cybersecurity company to Google in 2022. He has a fresh $190 million for a new venture Musk's xAI wants to build a power plant in Mississippi. Regulators planned a key meeting on Election Day, 200 miles away Oracle is building yesterday's data centers with tomorrow's debt President Donald Trump is pushing to create a $175 billion defense system to protect the U.S. from missile threats and rebuild deteriorating U.S. military systems. Defense tech firms such as Anduril are scaling capabilities in a bid to win future contracts for the sprawling project, dubbed the " Golden Dome ," where tracking systems and satellite data play a central role. Anduril, which was founded by Oculus creator Palmer Luckey in 2017, is steadily scaling its portfolio of space and satellite defense capabilities as it pushes beyond its widely recognized autonomous drone technol...
Thinking Machines Lab, the artificial intelligence startup led by OpenAI’s former chief technology officer Mira Murati, has just traded its ‘stealth’ status for a seat at the big table. The startup struck a multiyear strategic partnership with Nvidia, which also made a “significant investment,” the two announced Tuesday. The terms, however vague, signal ambitions to shake up frontier AI. You Said ...
Thinking Machines Lab, the artificial intelligence startup led by OpenAI’s former chief technology officer Mira Murati, has just traded its ‘stealth’ status for a seat at the big table. The startup struck a multiyear strategic partnership with Nvidia, which also made a “significant investment,” the two announced Tuesday. The terms, however vague, signal ambitions to shake up frontier AI. You Said Watt? Founded as a public benefit corporation in February 2025 by OpenAI veterans, Thinking Machines generated considerable buzz (and jealousy, at least from this wallet) when it raised $2 billion at a $12 billion valuation just five months later. Joining the seed round were A-list investors, including Andreessen Horowitz, Nvidia, AMD and Cisco, for whom most pitch decks serve as recycling material. The hype was on. Thinking Machines emerged from stealth mode in October with its first and so far only product, Tinker, a tool that automates much of the work involved in fine-tuning large language models. Tinker works with Meta’s Llama and Alibaba’s Qwen, both of which are open source, allowing users to train them to perform certain specialized tasks: making their own custom versions of a frontier model, in short. Beyond that, however, Thinking Machines has kept mum about other plans. Tuesday’s deal suggests, at the very least, they aren’t small: The financial details of Nvidia’s “significant investment” were not disclosed, but the companies said Thinking Machines will deploy at least 1 gigawatt of the semiconductor giant’s brand new Vera Rubin hardware beginning next year. One gigawatt is enough to power the entire city of San Francisco, about the amount a nuclear power plant generates. Nvidia CEO Jensen Huang said in August 2025 that building a gigawatt of data-center capacity costs $50 billion to $60 billion. In other words, the resources being deployed here all but scream that Thinking Machines is planning to compete in the frontier model space against the likes of Anthropi...