Oracle Earnings Report: AI Boom Se Oracle Stock Earnings Reach New Heights
These days, there is only one discussion going on everywhere – the boom of artificial intelligence and the speed of cloud computing with it. In this race, Oracle has surprised everyone with the numbers of its latest Oracle earnings report. When the company declared its quarterly report, analysts and investors were literally in shock – but in a good way. Oracle’s stock jumped more than 25% in after-hours trading, and all this has happened due to AI-fueled cloud revenue which is going to show unimaginable growth in the coming few years.
Oracle Earnings Report Shows Historic Jump
Oracle’s Q1 fiscal 2026 report was a bit mixed. Revenue was $14.9 billion, which was slightly below analysts’ $15 billion expectation. EPS was also reported at $1.47, while the estimate was $1.48. Normally, the market reacts negatively to such numbers, but this time everything happened the opposite. The reason was simple – the forward-looking growth outlook excited everyone.
CEO Safra Catz said Oracle Cloud Infrastructure (OCI) revenue is expected to grow 77% this year to $18 billion. But the real shock is in projections where revenue is estimated to reach $144 billion by 2030. This number is so big that Deutsche Bank’s Brad Zelnick said on the earnings call – “We’re all kind of in shock.”
Oracle Stock Earnings Rally on AI-Fueled Cloud Growth
Oracle’s stock rallied 28% in the after-hours, which could be the biggest single session move since the 1999 dot-com boom. Shares moved as high as $310 in extended trading, well above their last month’s record $256.43 close. Market cap is also estimated to jump above $870 billion.
This is due to fast AI and cloud demand. Oracle has signed a 4.5 gigawatt data center capacity deal with OpenAI. It has also finalized multibillion-dollar contracts with xAI, Meta and other big AI players. This led to the company’s Remaining Performance Obligations (RPO) jumping to $455 billion – 359% higher than a year ago.
Analysts Reactions to Oracle Earnings Report
Reactions from analysts during the earnings call were also noteworthy. Guggenheim’s John DiFucci said, “I’m blown away.” TD Cowen’s Derrick Wood called it a “momentous quarter,” and Deutsche Bank’s Zelnick declared it a “seismic shift.” Wood said after looking at the RPO numbers, “just really amazing to see.” But he also asked how much it would cost to build the infrastructure. Catz clarified that Oracle has a different approach from its competitors. The company focuses on its unique technology and networking systems rather than owning buildings.
Oracle Stock Earnings Fueled by AI and Nvidia GPUs
Oracle has secured Nvidia’s coveted GPUs (AI chips) to fulfill its AI ambitions and is making them available on rent through its OCI business. It’s a model that is giving tough competition to Big Tech rivals like Amazon and Google.
But this growth has also come with some sacrifices. According to reports, Oracle has laid off several employees and has also talked about reducing bonuses/cash raises. Also, the company announced that capital expenditures will reach $35 billion in 2026, which is much higher than $21 billion in 2021 and $25 billion in 2025.
Why This Oracle Earnings Report is Different
Normally when companies miss revenue, the market is disappointed. But in Oracle’s case, the whole story changed. This time Wall Street was focused on just one thing – Oracle’s future growth projections. And when a company talks about increasing its cloud infrastructure revenue to $144 billion in 4 years, naturally the reaction of investors is so strong.
Now Oracle stands as a serious challenger in front of giants like Amazon, Microsoft and Google. The strategy of hyperscalers is also working in Oracle’s favor, as many businesses are indirectly using Oracle’s capacity through partnerships.
Oracle Stock Earnings: Future Outlook
Oracle shares are up 46% this year, while the Nasdaq index has grown just 13%. The stock has gained more than 70% in the past year. If this momentum continues due to AI and cloud contracts, Oracle will not only compete but can also come out ahead in the race to become the market leader.
Safra Catz says that “we have signed significant cloud contracts with the who’s who of AI.” This statement itself shows how strong Oracle’s future positioning can be. Oracle has set a powerful roadmap in both AI and cloud infrastructure, which has become a source of hope and excitement for both investors and analysts.
Disclaimer:
This article is for informational and educational purposes only. The information given in this is not any kind of financial or investment advice. Investors should consult their financial advisor and take decisions according to their risk tolerance.
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