oracle Shares rose 9% on Wednesday after the company reported strong third-quarter results and assured analysts it has no plans to raise additional debt beyond what it has already announced in 2026.
“While investing in AI infrastructure is capital-intensive, our operating model is optimized for profitability,” CEO Clayton Magouik said on Tuesday’s earnings call.
Hyperscalers are skeptical of financing measures to fund data center construction.
The company announced last month that it plans to raise up to $50 billion in bonds and equity in 2026 and has no plans to issue additional bonds.
Magouik spoke on a conference call with analysts about the company’s artificial intelligence infrastructure growth plans.
“Since then, we have closed more than $29 billion in contracts with multiple customers using that new model,” Magwirke said. “The combination of bring-your-own-hardware and customer pre-payments allows us to continue to scale without incurring negative cash flow from Oracle.”
Magouyrk also noted that Oracle delivered 90% of its 400-megawatt data center on or ahead of schedule in the third quarter.
Concerns about an AI bubble have hurt software stocks, including Oracle, which are down more than 50% from their record highs in September and about 15% year-to-date.
of iShares Enhanced Technology Software Sector ETF (IGV) by 18% by 2026.
In Q3 cloud revenue, which includes infrastructure and software-as-a-service, Oracle reported a 44% year-over-year increase to $8.9 billion.
Wall Street was generally bullish on the stock after the conference call.
“Oracle’s core AI and cloud numbers and backlog speak to the demand for a very healthy and robust AI revolution,” Wedbush’s Dan Ives wrote in a note Tuesday.
The senior equity research analyst added that the report would be seen as a “huge relief for the software and technology sector.”
Oracle’s 1-year stock price chart.
