These 2 AI Giants Have Been Dormant. That's Exactly Why They Might Surprise Investors

Oracle has underperformed in 2026 while operating results improved. In Q3 FY2026, revenue reached $17.19 billion and EPS reached $1.79, with organic total revenue and non-GAAP EPS both growing at least 20%. Cloud Infrastructure revenue rose to $4.89 billion, up 84% year over year, and AI infrastructure revenue increased 243%. Remaining Performance Obligations grew to $553 billion, up 325% year over year. Oracle guided Oracle Cloud Infrastructure revenue from $18 billion in FY2026 to $144 billion within five years, with much of that already reflected in RPO. The main risk is capital intensity, with CapEx around $50 billion, negative free cash flow, and $124.7 billion in non-current debt.

"In Q3 FY2026, Oracle posted revenue of $17.19 billion and EPS of $1.79, marking the first quarter in over 15 years with organic total revenue and non-GAAP EPS both growing 20% or better. Cloud Infrastructure revenue hit $4.89 billion, up 84% year over year, with AI infrastructure revenue specifically up 243%."

"The forward signal is the backlog. Remaining Performance Obligations swelled to $553 billion, a 325% jump year over year. Safra Catz has guided Oracle Cloud Infrastructure revenue from $18 billion in FY2026 to $144 billion within five years, with most of that already booked in RPO. Multicloud database revenue grew 531% year over year, and co-CEO Clay Magouyrk noted that "demand for AI infrastructure, both GPU and CPU, continues to exceed supply.""

"The catch is capital intensity. CapEx is running at roughly $50 billion, free cash flow is negative, and non-current debt sits at $124.7 billion. Analysts remain constructive, with 35 buys, 8 holds, and 1 sell and a consensus target of $242.74. The market is waiting for capex to translate to cash flow."

Read at 24/7 Wall St.