Oracle Corp (NYSE:ORCL, XETRA:ORC) shares jumped nearly 10% in Wednesday trading following a fiscal third-quarter report that highlighted accelerating cloud growth and expanding AI infrastructure adoption.

The company reported total revenue of $17.2 billion, up 22% year-over-year, exceeding analysts’ expectations of $16.96 billion. Cloud infrastructure revenue surged 81% in constant currency terms, driven by a record sequential addition of roughly $810 million, while SaaS revenue grew 11%, above Street estimates of 9%.

UBS analysts called the results “relatively clean,” noting that Oracle’s capital expenditures of $18.6 billion likely reflected near-term capacity coming online, but the full-year capex guidance suggests a material step-down in the final quarter.

“Oracle posted strong 3Q numbers with cloud growth accelerating materially from prior quarters and record sequential cloud dollar adds,” UBS wrote. “Importantly, the ramp in GPU revenue didn’t translate to material bottom-line pressure.”

UBS reaffirmed a Buy rating with a $250 price target, citing 15 to 20% expected EPS growth and significant AI exposure.

Jefferies highlighted the company’s AI infrastructure strategy, which they said is “scaling into durable backlog and revenue.” The firm noted Oracle’s remaining performance obligations surged to $553 billion, up $29 billion sequentially, underpinned by capital-efficient AI contracts. Jefferies maintained a Buy rating and lifted its price target to $320.

Bank of America echoed the optimism, calling the quarter “solid” and noting that Oracle’s cloud revenue growth accelerated from 33% in Q2 to 41% in Q3. The firm highlighted that a mix of asset-light, “bring-your-own-hardware” deals and upfront payments helped the company maintain capex guidance while raising its FY27 revenue target to $90 billion from $85 billion.

Analysts acknowledged some areas to watch, including slightly softer SaaS growth after Fusion apps decelerated to 14% from 18%, and NetSuite to 11% from 13%, and limited visibility on the timing of large OpenAI-related contracts.

Despite these caveats, the market response was positive, reflecting confidence in Oracle’s accelerating cloud momentum and expanding AI footprint. UBS noted the stock trades at 23 times CY26 non-GAAP EPS, which it called “attractive” given growth prospects.

Oracle also reaffirmed FY26 revenue targets and projected total revenue growth of 18-20% in the fourth quarter, in line with analyst estimates. Gross margin for AI infrastructure capacity delivered in Q3 came in at 32%, within the company’s 30 to 40% target range.