Oracle forecasts aggressive revenue growth for its cloud business. Shares soared 28%

Cloud services provider Oracle said after last quarter's report that its revenue from artificial intelligence-based cloud solutions is expected to reach $144 billion by fiscal 2030, a 620% increase over the company's forecast for the current year. The ambitious plan overshadowed results for the quarter, in which the company fell short of Wall Street's revenue and profit expectations. Oracle shares soared more than 28% in extended trading.

Oracle Cloud revenue will grow 77% to $18 billion in the current fiscal year and grow aggressively thereafter, reaching $144 billion a year by Ma 2030, the company said in a press release. This forecast exceeded Wall Street's expectations, Bloomberg notes.

"In the first quarter, we signed four billion-dollar contracts with three different customers," said Oracle CEO Safra Katz. - It was an astounding quarter, and demand for Oracle Cloud Infrastructure continues to grow." She said recent and upcoming orders will underpin the rapid growth of the company's cloud infrastructure business in the coming years, with remaining contract commitments growing to more than $500 billion in the current year.

Oracle's RPO (remaining performance obligation), a benchmark for future contractual obligations, reached $455 billion by the end of the first quarter of fiscal 2026, which ended Aug. 31. Three months earlier, it stood at about $138 billion, Bloomberg notes. The reason for the 359% growth is that this summer the cloud provider entered into an unprecedented agreement with OpenAI, reserving 4.5 gigawatts of data center capacity for the partner. That amount is comparable to the energy consumption of millions of U.S. homes, the agency explains. In addition to OpenAI, Oracle's major customers in the cloud segment include ByteDance's TikTok social network and chipmaker Nvidia.

After the release of the reports, Oracle shares jumped 28.4% to $310 on the postmarket on September 9. This is the maximum value of securities in the history of the company.

If Oracle's stock adds 22% or more in major trading on Sept. 10, Oracle investors will have their best day since the dot-com boom of 1999. It would also increase the company's market capitalization to $870 billion, making it the tenth most valuable company in the S&P 500 index, Bloomberg writes.

From the beginning of the year through the close of Tuesday's main trading session, the company's securities were up 45% - four times as much as the S&P 500 index. Most of the growth was driven by a strong quarterly report released in June.

Oracle's cloud infrastructure revenue in the first quarter of fiscal 2026 rose 55% to $3.3 billion, with analysts predicting a 53% increase, Bloomberg writes.

Total revenue grew 12% year-on-year to $14.93 billion versus analysts' expectations of $15.04 billion, CNBC reported citing LSEG. Adjusted earnings at the same time amounted to $1.47 per share. Wall Street expected $1.48.

Net income was virtually unchanged from a year ago at $2.93 billion, or $1.01 per share, the TV station reported.

This article was AI-translated and verified by a human editor