Oracle Stock Surges 28% on Cloud Revenue Growth, Market Value Nears 8000 Billion Dollars

Oracle Corporation, a leading provider of database software, has reported a substantial increase in its first-quarter business orders, leading to a significant rise in its cloud infrastructure business revenue guidance. This development has resulted in a 28% post-market surge in the company's stock price, potentially adding approximately 1900 billion dollars to its market value and pushing it past 8000 billion dollars. This surge positions

The company's cloud infrastructure business is projected to grow by 77% this fiscal year, reaching 180 billion dollars, and is expected to maintain strong growth, reaching 1440 billion dollars by the fiscal year ending in May 2030. This projection exceeds expectations. Specifically, the company anticipates cloud infrastructure revenue to reach 320 billion dollars, 730 billion dollars, 1140 billion dollars, and 1440 billion dollars over the next four years, respectively.

Oracle's success in the competitive cloud computing market is evident in its recent partnerships. Earlier this summer, the company secured a groundbreaking agreement with OpenAI, obtaining 4.5 GW of data center capacity—enough energy to power millions of American households. Major cloud customers include TikTok, owned by ByteDance, and

Oracle plans to launch an Oracle AI database service in October, allowing customers to run AI models from OpenAI and other companies on data stored in Oracle databases. This move deepens Oracle's product integration with OpenAI. In August, Oracle announced the integration of OpenAI's new GPT-5 AI model into its cloud applications.

The company's remaining performance obligations, a key metric for pre-orders, have increased to 4550 billion dollars by the end of the first quarter, more than four times the figure from the previous year. This surge is driven by recent and upcoming orders, which are expected to fuel rapid expansion in the cloud infrastructure business over the next few years.

Oracle's Chief Executive Officer highlighted that the company has signed four multi-billion-dollar contracts with three different clients this quarter and anticipates more partnerships in the coming months, potentially pushing the remaining performance obligations above 5000 billion dollars.

Despite Oracle's first-quarter revenue of 149 billion dollars falling slightly short of analyst expectations of 150 billion dollars, and its adjusted earnings per share of 1.47 dollars missing the 1.48 dollars forecast, the company's cloud infrastructure business revenue grew by 55%, reaching 33 billion dollars, surpassing the expected 53% growth.

Oracle has been aggressively investing in data center infrastructure to support its AI initiatives, with capital expenditures for the year estimated at 350 billion dollars, significantly higher than the 260 billion dollars anticipated by Wall Street. The company is also leveraging AI internally to enhance operational efficiency, although recent layoffs and potential cuts to employee bonuses and salary increases have been reported.

Oracle's strategic investments in AI and cloud infrastructure are expected to yield long-term benefits, as the company continues to attract enterprise clients seeking cost-effective AI cloud solutions. The integration of advanced AI models and the expansion of data center capacity position Oracle as a leader in the cloud computing landscape, potentially drawing more businesses seeking comprehensive cloud solutions.