Oracle just posted its best quarter in 15 years – here’s why 2026 could be even better | The colorful fool

oracle (ORCL 2.54%) simply did something it hasn’t done in 15 years. In the third quarter of fiscal 2026 (ended February 28), both adjusted revenue and earnings per share increased at least 20% year-over-year, driven by increasing demand for cloud infrastructure and infrastructure Artificial Intelligence (AI) Services.

The stock rebounded significantly following the earnings report, but is still trading more than 52% below its 52-week high. Wall Street fears that higher capital spending to meet AI demand will strain whatever short-term cash flow it has. But for this reason, I believe Oracle could continue to beat expectations in 2026 and potentially see a recovery in its stock.

AI benefits Oracle’s entire business

Oracle is participating in a massive expansion of the AI ​​infrastructure. Cloud infrastructure revenue increased 84% year-over-year, while remaining performance obligations (contracted revenue that has not yet been realized) drove an additional $30 billion in new business…