Oracle Shares rose 12% on Wednesday after the company posted strong third-quarter earnings and assured analysts that the company does not plan to raise any additional debt in 2026 beyond what has already been announced.
“Investing in AI infrastructure is capital-intensive, but our operating model is optimized to ensure profitability,” CEO Clayton Magouyrk said on the company’s earnings call Tuesday.
The hyperscaler has raised skepticism about the financial measures funding the construction of its data center.
Last month, the company said it intends to raise up to $50 billion in 2026 with a mix of debt and equity, with no expectations of issuing additional bonds.
Magouyrk addressed growth plans for the company’s AI infrastructure on the analyst call.
“We’ve signed over $29 billion in contracts since then with multiple clients using that new model,” Magouyrk said. “A combination of bringing our own hardware and paying upfront to customers allows us to continue expanding without any negative cash flow from Oracle.”
Magouyrk also noted that Oracle delivered 90% of 400-megawatt data centers ahead of schedule in the third quarter.
Fears of an AI bubble have taken their toll on software stocks, including Oracle, which has fallen more than 50% from its all-time high in September and about 15% so far this year.
He iShares Expanded Technology Software Sector ETF (IGV) It is down 18% so far in 2026.
In cloud revenue for the third quarter, including infrastructure and software as a service, Oracle reported $8.9 billion, an increase of 44% from last year.
Wall Street was generally bullish on stocks after the call.
“Oracle’s core AI and cloud numbers and backlog tell a very healthy and robust demand story for the AI revolution,” Wedbush’s Dan Ives wrote in a note Tuesday.
He added that the report will be seen as a “huge relief for the software and technology sector.”
Oracle One Year Stock Chart.
