Oracle's cloud sales exceeded expectations. The stock soared

Oracle’s cloud computing business growth for the first quarter of 2027, which ended on August 31, exceeded analysts’ forecasts, according to Bloomberg. These figures indicate that the company’s major projects to build data centers for AI are contributing to Oracle’s improved financial results.

The company’s revenue in the cloud infrastructure segment jumped 121% year-over-year last quarter, reaching $7.4 billion, while analysts had expected it to be $7.19 billion. Total revenue for the same period increased by nearly 30% to $19.3 billion. Quarterly net income was $4.68 billion, or $1.56 per share.

Oracle, known for its database software, has shifted its focus to providing computing power for AI and is embarking on a large-scale construction project to build data centers for OpenAI and other clients. Wall Street is keeping a close eye on the scale of spending on these ambitious projects and how quickly Oracle can complete them, according to Bloomberg. Last quarter, the company reported that it increased the capacity of its data centers by 850 megawatts.

The company's shares soared 7% in after-hours trading on September 10; year-to-date, they are down more than 20%.

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