Oracle cloud business surges 84% as AI contracts push revenue forecast to $90 billion
13 Sources
[1]
Oracle Posts Strong Cloud Sales Growth Following AI Bookings
The company is working to deliver on massive cloud infrastructure contracts with customers like OpenAI and Meta Platforms Inc., and said the demand for cloud computing for AI training and inferencing continues to grow faster than supply. Oracle Corp. shares gained almost 10% in extended trading
[2]
Oracle says AI coding is helping it dodge SaaSpocalypse
Big Red reckons paying for datacenters is easy when you have half a trillion dollars of cloud orders on the books Oracle says AI code generation tools have become so efficient, and it is so good at using them, that it will dodge the SaaSpocalypse and watch smaller rivals suffer. Big Red delivered
[3]
Oracle sees AI boom through at least 2027, sending shares up 8%
March 10 (Reuters) - Oracle (ORCL.N), opens new tab on Tuesday predicted that the AI data center boom will power its revenue above Wall Street estimates well into 2027, sending its shares up 8.3% in extended trading. The results help to allay investor concerns that Oracle's costly multi-billion
[4]
Oracle stock surges on strong AI revenue forecast
Why it matters: Oracle had been on the hot seat as investors questioned whether it could handle a deluge of business from AI tech giants. Driving the news: Oracle on Tuesday raised its revenue forecast for the next fiscal year to $90 billion. * Analysts had expected $86.6 billion, CNBC reported,
[5]
Oracle's earnings have calmed Wall Street's fears -- for now
Oracle $ORCL keeps walking into earnings with roughly the same giant cloud-and-AI story and watching Wall Street rewrite the ending. In September, talk of more than $500 billion in booked cloud orders and RPO of $455 billion sent the stock up close to 30% after hours. In December, softer guidance
[6]
Oracle turns in a strong Q3 with time left over to debunk the so-called 'SaaSpocalypse'
No signs of the wretched 'SaaSpocalypse' as Oracle turned in a strong Q3. Revenue rose 18% year-on-year to $17.19 billion, with profit of $3.72 billion, up from $2.94 billion a year ago. Total cloud revenue (IaaS plus SaaS) came in at $8.9 billion, up 44%, of which infrastructure revenue was up
[7]
Larry Ellison says AI will only make Oracle stronger
Oracle $ORCL, of all companies, would like a word about the future of software. On its latest earnings call, Larry Ellison grabbed one of tech's nastier new panic phrases -- the SaaS-apocalypse -- and used it to try to argue that AI's shakeout won't bury Oracle but could instead leave the old
[8]
Oracle Boosts Outlook Amid Huge AI Demand. The Stock Is Surging.
Get personalized, AI-powered answers built on 27+ years of trusted expertise. Oracle turned in a strong quarter and raised its long-term outlook on strong AI demand. Will it be enough to bring its stock out of its slump? Shares of Oracle were up about 9% in extended trading after the company said
[9]
US Stock Market | Oracle sees AI boom through at least 2027, sending shares up 8%
Oracle on Tuesday predicted that the AI data center boom will power its revenue above Wall Street estimates well into 2027, sending its shares up 8% in extended trading. Oracle on Tuesday predicted that the AI data center boom will power its revenue above Wall Street estimates well into 2027,
[10]
Oracle Q3 Earnings: 'SaaSpocalypse' Is Coming -- Just Not For Oracle, Executives Say
'We think the SaaSpocalypse applies to others," says Chief Technology Officer and co-founder Larry Ellison. Oracle co-CEO Mike Sicilia and Chief Technology Officer and co-founder Larry Ellison dismissed concerns around a "SaaSpocalypse" of more traditional enterprise software-as-a-service vendors
[11]
Investor Outlook: Oracle earnings beat highlights AI cloud growth
Oracle shares jumped after the company beat third-quarter earnings estimates and raised its revenue guidance, underscoring strong demand for artificial intelligence infrastructure. BNN Bloomberg spoke with Rob Oliver, senior research analyst at Baird, who says Oracle's expanding cloud business and
[12]
Oracle beats Q3 expectations on AI demand
Oracle posted quarterly results that beat expectations, driven by strong demand for its artificial intelligence-related cloud computing services. In Q3, the company reported revenue of $17.19bn, topping the average analyst estimate of $16.91bn, according to LSEG data. Following the announcement,
[13]
Oracle sees AI boom through at least 2027, sending shares up 8%
March 10 (Reuters) - Oracle on Tuesday predicted that the AI data center boom will power its revenue above Wall Street estimates well into 2027, sending its shares up 8% in extended trading. The results help to allay investor concerns that Oracle's costly multi-billion dollar push into AI
Share
Copy Link
Oracle reported infrastructure revenue growth of 84% to $4.9 billion, driven by massive AI contracts with OpenAI and Meta. The company raised its fiscal 2027 revenue forecast to $90 billion while maintaining capital expenditure guidance at $50 billion. Oracle stock jumped nearly 10% as Wall Street's concerns about profitability eased.
Oracle Posts Record Cloud Sales Growth Amid AI Infrastructure Boom
Oracle delivered a decisive earnings beat that sent its stock soaring nearly 10% in extended trading, as the company's infrastructure business posted 84% revenue growth to $4.9 billion in the quarter ended February 28
1
. The cloud sales growth exceeded analyst expectations of 79% and marked a significant acceleration from the previous quarter's 68% increase1
. Total revenue climbed 22% to $17.2 billion, surpassing Wall Street estimates of $16.9 billion, while cloud business revenue jumped 44% to $8.9 billion2
.
Source: Quartz
The company raised its AI revenue forecast for fiscal 2027 to $90 billion, well above analyst estimates of $86.6 billion
3
. This optimistic outlook comes as Oracle works to deliver on massive cloud infrastructure contracts with customers like OpenAI and Meta, positioning itself to capture a growing slice of the AI data center boom1
.Remaining Performance Obligations Hit $553 Billion on AI Contracts
Oracle's order backlog, measured as Remaining Performance Obligations (RPO), reached $553 billion at quarter-end, representing a 325% surge from the previous year and exceeding analyst estimates of $540.37 billion
3
. Most of this increase came from large-scale AI contracts where customers fund upfront semiconductor purchases, addressing investor concerns about Oracle's capital-intensive expansion strategy1
.Co-CEO Clay Magouyrk revealed that Oracle signed more than $29 billion in contracts using bring-your-own-hardware arrangements and upfront customer payments, enabling the company to expand its datacenter footprint "without any negative cash flow from Oracle"
2
. This financing approach helped ease Wall Street anxiety about the company's debt exposure and capital expenditures, which totaled $18.6 billion in the quarter but remained within the company's $50 billion annual guidance1
.AI Coding Tools Enable Smaller Engineering Teams
Oracle announced it has been restructuring product development using AI coding tools, enabling smaller engineering teams to deliver more software faster
4
. "This new AI Code Generation technology is enabling us to build more software in less time with fewer people," the company stated1
.
Source: ET
Co-CEO Mike Sicilia used the earnings call to address fears of a "SaaSpocalypse," asserting that while smaller SaaS players may face disruption, Oracle will leverage these tools to build comprehensive agent-based software for industries like healthcare and financial services
3
.The company has already deployed over 1,000 embedded AI agents inside its horizontal and industry applications, including three new customer experience products and a website generator
5
. This strategic embrace of AI coding tools comes as Bloomberg reported Oracle is planning thousands of job cuts, with $1.6 billion in expected restructuring costs for the fiscal year through May1
.Related Stories
Market Reaction Signals Restored Confidence in IaaS Strategy
Oracle stock, which had lost more than 50% of its value from a September peak through Tuesday's close, surged to $164.51 in extended trading
1
. The earnings report helped allay investor concerns that Oracle's costly multi-billion dollar push into AI computing would not generate profits quickly enough3
. eMarketer analyst Jacob Bourne called the quarter "a beat and a stress test result for the AI trade," noting that as the most debt-exposed major player in AI infrastructure, Oracle serves as "the canary in the coal mine" for underlying health in AI spending3
.Larry Ellison, Oracle's co-founder and executive chairman, emphasized that the company's strategy centers on bringing AI agents close to mission-critical data in systems of record
5
. Magouyrk noted that early customer expectations of training private large language models have "largely proven" incorrect, with demand shifting toward combining the best models with private data5
. Oracle is quickly delivering cloud capacity to customers, with 90% provided on or ahead of schedule in the quarter1
. The company stated that "demand for cloud computing for AI training and inferencing continues to grow faster than supply," positioning Oracle to meet and likely exceed revenue growth targets for fiscal 2027 and beyond1
.
Source: Quartz
References
Summarized by
Navi
[2]
Related Stories
Oracle's Q3 Earnings: AI Drives Growth Despite Missing Wall Street Expectations
11 Mar 2025•Business and Economy
Oracle's AI-Driven Cloud Surge Propels Larry Ellison to World's Richest
09 Sept 2025•Business and Economy
Oracle Beats Revenue Estimates as AI Demand Drives 121% Cloud Infrastructure Growth
07 Sept 2026•Business and Economy
Recent Highlights
1
Apple Launches iOS 27 and macOS 27 with Siri AI Overhaul and Liquid Glass Updates
Technology
2
OpenAI Agents Launched RubyGems Attack With 2,000+ Malicious Packages, Attempted API Key Theft
Technology
3
Apple Launches iPhone 18 Pro with Variable Aperture Camera and Advanced AI Features at $1,199
Technology
Recent Highlights
Today's Top Stories
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Follow topics that matter to you and stay ahead.
