Oracle's Cloud Business Soars on AI Demand, Stock Surges 27%

Oracle expects half a trillion dollars in booked cloud orders, stock rises 27%

Sept 9 (Reuters) - Oracle (ORCL.N), opens new tab said on Tuesday it expects booked revenue at its Oracle Cloud Infrastructure business to exceed half a trillion dollars, boosted by growing demand for its relatively low-cost cloud infrastructure services and sending its shares up 27% after the bell. The company's remaining performance obligations, or RPO, the most popular measure of booked revenue, jumped 359% to $455 billion in the first quarter, ended August 31. "Over the next few months, we expect to sign-up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars," said CEO Safra Catz. Oracle, whose shares have risen over 107% so far this year, forecast OCI revenue growth of 77% to $18 billion this fiscal year, and on to $144 billion over the subsequent four years. "Enterprises are clearly eager for cost-effective AI cloud tools, and Oracle is positioning itself to capture that demand," said eMarketer analyst Jacob Bourne. Oracle offers integrated cloud technologies along with flexible deployment models, enabling it to meet a range of customer demands. "We made it very easy for our customers to directly connect all their databases ... to the world's most advanced AI reasoning models -- ChatGPT, Gemini, Grok, all of which are uniquely available in the Oracle Cloud," Catz said on a post-earnings call. Even though it is a smaller player, "both current and forecast numbers show that Oracle's investment in infrastructure is continuing to pay off as large organizations look to Oracle Cloud to support their AI initiatives," said Rebecca Wettemann, CEO of industry analyst firm Valoir. It has struck deals with Amazon (AMZN.O), opens new tab, Alphabet (GOOGL.O), opens new tab and Microsoft (MSFT.O), opens new tab for OCI to run inside their respective cloud infrastructure. Revenue from these clients grew 1,529% in the first quarter. "We expect MultiCloud revenue to grow substantially every quarter for several years as we deliver another 37 datacenters to our three hyperscaler partners, for a total of 71," Chairman Larry Ellison said. "By offering integrated solutions across various environments, Oracle is not just keeping up but actually leading the way in the cloud space. This could attract even more businesses looking for versatile cloud options," according to Melissa Otto, head of research at S&P Global's Visible Alpha. Oracle also said it had signed four multi-billion-dollar contracts with three different customers in the first quarter, helping a 12% increase in revenue to $14.93 billion. For the second quarter, Oracle expects total revenue to grow 12% to 14%, while it sees cloud revenue growth between 32% to 36%. Reporting by Juby Babu in Mexico City; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

Oracle shares jump 20% on surge in future AI revenue

Oracle reported a massive jump in bookings of future artificial intelligence business for its cloud infrastructure unit on Tuesday, sending shares in the US database company up 20 per cent in after-hours trading. The company's remaining performance obligations -- business it has booked that will feed through into future revenue -- leapt to $455bn, up from only $138bn three months ago. Safra Catz, chief executive, called it an "astonishing quarter" that had included Oracle signing "four multibillion-dollar contracts with three different customers" in the latest three months. Wall Street had been primed for a leap in bookings following the disclosure of a new $30bn-a-year contract the company signed in July, but had not expected the overall backlog to grow as fast. The company, which was late to pivot to the cloud, has reaped the rewards of a groundswell in demand for data centre infrastructure from AI start-ups and other major technology companies. Earlier this year it signed a deal to partner with OpenAI and SoftBank on the $500bn Stargate project. The after-hours surge in Oracle's share price, which added $135bn to its stock market value, follows a gain of roughly 43 per cent in the year-to-date ahead of Tuesday's earnings release, propelling founder Larry Ellison up the Bloomberg Billionaire Index, below only Elon Musk with an estimated net worth in excess of $290bn. For the latest quarter Oracle reported a 12 per cent gain in revenue, to $14.9bn, slightly below the $15bn Wall Street had been expecting. Adjusted net income rose 8 per cent to $4.3bn, higher than analysts' expectations. The earnings came more than a month after rival tech companies including Amazon, Alphabet, Meta and Microsoft. Collectively, these four companies are on course to spend more than $350bn this year on data centres and other AI infrastructure and more than $400bn in 2026. Oracle has previously committed to investing more than $25bn in the current fiscal year, up from $21bn last year but well below its rivals. In July, it emerged OpenAI had agreed to lease 4.5 gigawatts of computing power from Oracle in a deal worth about $30bn a year. The move will entail Oracle developing multiple data centres across the US to satisfy the start-up's computer-processing demands, having already reached a deal to supply a 1.2GW site in Abilene, Texas.

Oracle pops 20% on growth projections even as earnings miss estimates

Oracle CEO Safra Catz, center, speaks during a dinner at the White House in Washington on Sept. 4, 2025. President Donald Trump hosted technology and business leaders for dinner after they joined First Lady Melania Trump's meeting of the Artificial Intelligence Education Task Force at the White House. Oracle shares spiked 20% in extended trading on Tuesday after the database software maker indicated hefty growth prospects even as earnings and revenue missed estimates. Here's how the company did in comparison with LSEG consensus: Revenue increased 12% from a year earlier during the quarter, which ended on Aug. 31, according to a statement. Net income was about flat at $2.93 billion, or $1.01 per share, compared to $2.93 billion, or $1.03 per share, in the same quarter last year. Oracle said its remaining performance obligation, a measure of contracted revenue that has not yet been contracted, now stands at $455 billion, up some 359% from a year earlier. During the quarter OpenAI said it signed an agreement with Oracle to develop 4.5 gigawatts of U.S. data center capacity. Alongside larger cloud providers such as Microsoft, Oracle has been one of the big winners of the AI boom, due to its cloud infrastructure business and its access to Nvidia's graphics processing units (GPUs) needed for large workloads. CEO Safra Catz said in the statement that the company signed four multibillion-dollar contracts with three different customers in the quarter. Also in the quarter, Oracle said cloud rival Google's Gemini artificial intelligence models would become available on Oracle's cloud infrastructure. Oracle's generated $3.3 billion in revenue from cloud infrastructure, up 55%. The growth rate was 52% in the fiscal fourth quarter. The shares hit a record last month and are up 45% in 2025 as of Tuesday's close, while the S&P 500 index has gained 11%. A gain of 22% on Wednesday would represent the best day for the stock since the dot-com boom of 1999 and the third-best day ever. It would also lift the company's market cap past $800 billion. Executives will discuss the results and issue guidance on a conference call starting at 5 p.m. ET. This is developing news. Please check back for updates. -- CNBC's Ari Levy contributed to this report

Oracle Had a 'Brilliant' Quarter, CEO Says. Its Stock Is Popping on AI Demand

Kara Greenberg is a senior news editor for Investopedia, where she does work writing, editing, and assigning daily markets and investing news. Prior to joining Investopedia, Kara was a researcher and editor at The Wire. Earlier in her career, she worked in financial compliance and due diligence at Loomis, Sayles & Company, and The Bank of New York Mellon. Oracle shares soared in late trading Tuesday after the cloud computing giant said it added several large new clients and boosted its outlook for cloud infrastructure sales on booming AI demand. Shares of Oracle (ORCL) were up over 25% in after-hours trading. The stock has added close to half of its value in 2025 through Tuesday's close, with most of the gains coming after the company posted strong quarterly results in June. Oracle on Tuesday said it now sees cloud infrastructure sales jumping 77% to $18 billion this fiscal year as AI demand grows, up from a June forecast of more than 70%. And that figure could surge to $144 billion over the next four years, CEO Safra Catz said. "We expect to sign-up several additional multi-billion-dollar customers," in the coming months, Catz said, after a "brilliant start" to its new fiscal year with four multibillion-dollar contracts signed in the quarter ended in August. Oracle posted adjusted earnings per share of $1.47 in the fiscal first quarter on revenue that rose 12% year-over-year to $14.9 billion. Both figures were slightly below Wall Street analysts' estimates as compiled by Visible Alpha. Oracle said its growing backlog from new contracts contributed to its more robust outlook, and Catz said the company intends to offer more details on its financial plan at an event scheduled for next month. Co-founder and CTO Larry Ellison said the company also plans to use the event to unveil a new service called "Oracle AI Database" that will allow customers to use top AI models, including OpenAI's ChatGPT, xAI's Grok, and Google's Gemini, on top of the Oracle Database to analyze their data. Ellison said he expects Oracle's AI offerings to support "dramatically" larger cloud demand and consumption in the years to come, adding "AI changes everything."

oracle: Oracle expects half a trillion dollars in booked cloud orders, stock rises 27% - The Economic Times

The company's remaining performance obligations, or RPO, the most popular measure of booked revenue, jumped 359% to $455 billion in the first quarter, ended August 31. Over the next few months, we expect to sign-up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars, CEO Safra Catz said.Oracle said on Tuesday it expects booked revenue at its Oracle Cloud Infrastructure business to exceed half a trillion dollars, boosted by growing demand for its relatively low-cost cloud infrastructure services and sending its shares up 27% after the bell. The company's remaining performance obligations, or RPO, the most popular measure of booked revenue, jumped 359% to $455 billion in the first quarter, ended August 31. "Over the next few months, we expect to sign-up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars," said CEO Safra Catz. Oracle, whose shares have risen over 107% so far this year, forecast OCI revenue growth of 77% to $18 billion this fiscal year, and on to $144 billion over the subsequent four years. "Enterprises are clearly eager for cost-effective AI cloud tools, and Oracle is positioning itself to capture that demand," said eMarketer analyst Jacob Bourne. Oracle offers integrated cloud technologies along with flexible deployment models, enabling it to meet a range of customer demands. "We made it very easy for our customers to directly connect all their databases ... to the world's most advanced AI reasoning models - ChatGPT, Gemini, Grok, all of which are uniquely available in the Oracle Cloud," Catz said on a post-earnings call. Even though it is a smaller player, "both current and forecast numbers show that Oracle's investment in infrastructure is continuing to pay off as large organizations look to Oracle Cloud to support their AI initiatives," said Rebecca Wettemann, CEO of industry analyst firm Valoir. It has struck deals with Amazon, Alphabet and Microsoft for OCI to run inside their respective cloud infrastructure. Revenue from these clients grew 1,529% in the first quarter. "We expect MultiCloud revenue to grow substantially every quarter for several years as we deliver another 37 datacenters to our three hyperscaler partners, for a total of 71," Chairman Larry Ellison said. "By offering integrated solutions across various environments, Oracle is not just keeping up but actually leading the way in the cloud space. This could attract even more businesses looking for versatile cloud options," according to Melissa Otto, head of research at S&P Global's Visible Alpha. Oracle also said it had signed four multi-billion-dollar contracts with three different customers in the first quarter, helping a 12% increase in revenue to $14.93 billion. For the second quarter, Oracle expects total revenue to grow 12% to 14%, while it sees cloud revenue growth between 32% to 36%.

Oracle Q1 Earnings: Ellison Says AI Inferencing Fuels Company's Monster Pipeline

'People are running out of inferencing capacity,' Oracle CTO and co-founder Larry Ellison said. Oracle missed expectations for its latest quarterly performance but blew away analysts with $455 billion in remaining performance obligations and a forecast that it will exceed $500 billion in RPO over the next few months in a signal that there is money to be made in artificial intelligence inferencing-and, perhaps, a shot at enterprise application vendors not yet seeing AI translate into meaningful revenue. The Austin, Texas-based cloud and database products vendor shared that RPO-the value of contracted services that haven't yet been delivered to customers-during its earnings call Tuesday covering the first quarter of its 2026 fiscal year. The quarter ended Aug. 31. Chief Technology Officer and co-founder Larry Ellison pointed to AI inferencing-when an AI model generates data-as a driver for the large amount of revenue his company is expected to take in. "People are running out of inferencing capacity," Ellison said on the call. "In the end, all this money we're spending on (AI model) training is going to have to be translated into products that are sold, which is all inferencing. And the inferencing market, again, is much larger than the training market." [RELATED: What Salesforce's Q2 Says About Enterprise Software In The AI Era] Oracle Q1 Oracle's NetSuite division is part of CRN's 2025 Partner Program Guide. CEO Safra Catz added that Oracle doesn't own the building and property, helping keep the cost of that revenue down. Oracle owns and engineers the equipment optimized for Oracle Cloud. "I know some of our competitors, they like to own buildings," Catz said. "That's not really our specialty. Our specialty is the unique technology, the unique networking, the storage, just the whole way we put these systems together." Oracle expects about $35 billion in capital expenditures for the fiscal year. "If it is higher, it's good news, because it means more capacity," she said. AI App Generators Ellison told listeners on Tuesday's call that Oracle has leveraged AI to build new applications and no longer needs the same number of employees. "The latest applications that we are building, we're not building them," he said. "They're being generated by AI. And we think we're far, far ahead of any of the other application companies. ... We don't charge separately for our AI and our applications because our applications are AI. They're entirely AI. The new ones-the new ones that we're building-they're nothing other than a bunch of AI agents that we generate, that are linked together with Workflow (Oracle's business process automation management system). That's all they are." Oracle has separated itself from AI competitors through its databases that vectorize data, secure the data and link to the popular AI models "to deliver a ChatGPT-like experience on top of your data as well as publicly available data," Ellison said. The Oracle co-founder explained that his company has millions of customer databases compared to the tens of thousands application vendors hold. He didn't explicitly reference any enterprise app vendors, although later in the call he pointed out that Oracle is larger than ServiceNow and Workday. "We're better positioned than anybody to take advantage of inferencing," he said. Oracle still needs employees, "but the number of people we need is substantially less, and we can build slash generate much better applications than we can hand build." Oracle's Cloud Business Catz said on the call that Oracle's cloud business continues to grow alongside the AI business, with AI appetite fueling customers' Oracle database migrations to the cloud. Fueling that business growth includes Oracle's dedicated cloud region option, its products across the technology stack and its partnerships with other cloud vendors to provide customers with more choice. "We have become the de facto cloud for many of our customers," she said. Oracle has gotten its cloud offer down to three racks available for $6 million, Ellison said. Competing cloud vendor offers can reach 500 times that amount. Oracle customers have sought a cloud experience without needing to share space with other companies. Q1 In Detail The vendor's total revenue for the quarter was $14.9 billion, up 11 percent year on year ignoring foreign exchange. Wall Street was expecting $15 billion. Cloud revenue, which Oracle counts as infrastructure-as-a-service plus software-as-a-service was $7.2 billion, up 27 percent ignoring foreign exchange. IaaS was $3.3 billion, up 54 percent year on year. SaaS was $3.8 billion, up 10 percent year on year. Oracle's software revenue fell 2 percent ignoring foreign exchange, coming in at $5.7 billion. The Fusion Cloud enterprise resource planning (ERP) revenue grew 16 percent year on year ignoring foreign exchange to $1 billion. NetSuite Cloud ERP revenue was the same amount at a similar percent growth. Oracle's operating income using Generally Accepted Accounting Principles (GAAP) was $4.3 billion. GAAP net income was $2.9 billion. Oracle saw operating cash flow of $21.5 billion over the past 12 months, up 13 percent year on year in U.S. dollars. The vendor is taking up its expected revenue from Oracle Cloud Infrastructure (OCI) to 77 percent growth year on year to $18 billion for the fiscal year. Oracle expects OCI revenue to then hit $32 billion the following year, then $73 billion the year after, $114 billion and then $144 billion in four years. Multicloud database revenue from the hyperscalers of Amazon, Google and Microsoft was 16 times the amount from a year ago, according to Oracle. Oracle's stock was up 26 percent after the market closed Tuesday, trading at about $305 a share.

Oracle boosts cloud infrastructure revenue forecast, shares jump 23%

(Reuters) - Oracle said on Tuesday it expects revenue in its Oracle Cloud Infrastructure business to grow 77% this year, from earlier projections of 70%, boosted by growing cloud demand and sending its shares up 23% after the bell. The company forecasts OCI revenue to rise 77% to $18 billion this fiscal year and on to $144 billion over the subsequent four years. Oracle also said it had signed four multi-billion-dollar contracts with three different customers in the first quarter, helping a 12% increase in revenue to $14.93 billion. "Over the next few months, we expect to sign-up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars," said CEO Safra Catz. Remaining performance obligations, or RPO, the most popular measure of booked revenue, jumped 359% to $455 billion in the first quarter ended August 31. "Enterprises are clearly eager for cost-effective AI cloud tools, and Oracle is positioning itself to capture that demand," said eMarketer analyst Jacob Bourne. Oracle offers integrated cloud technologies along with flexible deployment models. It has struck deals with Amazon, Alphabet and Microsoft for OCI to run inside their respective cloud infrastructure, expanding Oracle's total addressable market. "MultiCloud database revenue from Amazon, Google and Microsoft grew at the incredible rate of 1,529% in the first quarter," said Chairman Larry Ellison. "We expect MultiCloud revenue to grow substantially every quarter for several years as we deliver another 37 datacenters to our three Hyperscaler partners, for a total of 71." (Reporting by Juby Babu in Mexico City; Editing by Alan Barona)