In this articleORCL your favorite stocksCREATE FREE ACCOUNTSafra Catz, CEO, Oracle makes remarks during the second day of the FII PRIORITY Summit held at the Faena Hotel on Feb.
20, 2025 in Miami Beach, Florida.Joe Raedle | Getty ImagesOracle s spiked 27% in ext trading on Tuesday after the database software maker indicated hefty growth spects due to new cloud contracts, even as earnings and revenue missed estimates.Here's how the company did in comparison with LSEG consensus:Earnings per : $1.47 adjusted vs.
$1.48 expectedRevenue: $14.93 billion vs. $15.04 billion expectedRevenue increased 12% from $13.3 billion a year earlier during the quarter, which on Aug. 31, according to a statement.
Net income was flat at $2.93 billion, or $1.01 per , compared to $2.93 billion, or $1.03 per , in the same quarter last year.Oracle said its remaining performance obligations, a measure of contracted revenue that has not yet been recognized, soared to $455 billion, up 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 viders such as Microsoft, Oracle has been one of the big winners of the artificial intelligence boom, due to its cloud infrastructure and its access to Nvidia's graphics cessing units, or 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 AI models would become available on Oracle's cloud infrastructure.Oracle s 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% or better on Wednesday would represent the best day for the stock since the dot-com boom of 1999 and its third-sharpest rally ever.
It would also lift the company's market cap past $800 billion.In the statement, Larry Ellison, Oracle's co-founder, chairman and nology chief, said that in October, the company will bring out an Oracle AI Database service that will allow for running AI models from OpenAI and other companies atop client data stored in Oracle databases.
The effort would deepen Oracle's duct integration with OpenAI. In August, Oracle said it has brought OpenAI's new GPT-5 AI model to its cloud applications.watch now4:3604:36D.A.
Davidson's Gil Luria talks Oracle's guidance and how it pelled the stock to record highsFast Money"Historically, we don't deal with CEOs.
Now we deal with CEOs," Ellison said on a conference call with analysts.
He also said he's dealing directly with heads of state, "because AI is so important."Oracle generated $3.3 billion in revenue from cloud infrastructure, up 55% from a year earlier.
The growth rate was 52% in the fiscal fourth quarter.According to the statement, Oracle now sees $18 billion in cloud infrastructure revenue in the 2026 fiscal year.
That would suggest 77% growth from the roughly $10 billion total in fiscal 2025.
The company called for the annual sum to reach $32 billion, $73 billion, $114 billion and $144 billion over the subsequent four years.
Kirk Materne, an Evercore analyst with the equivalent of a buy rating on Oracle stock, said in a note to clients that he had anticipated $108 billion in fiscal 2029 cloud infrastructure revenue.In July, Microsoft said it duced $75 billion in revenue from its Azure cloud infrastructure over the past 12 months.
Amazon's cloud revenue during the same period apached $112 billion.For the fiscal second quarter, Oracle called for $1.61 to $1.65 in adjusted earnings per , with 14% to 16% revenue growth.
Analysts were looking for $1.62 in earnings per on $16.21 billion in revenue, which implies 15% growth.Capital expenditures for the new fiscal year will be around $35 billion, representing 65% growth, Catz said on the earnings call.
Microsoft and other cloud incumbents are accustomed to allocating more for perty and equipment for their build-outs."This is, in some ways, I don't want to call it asset-light, from the finance world, but it's asset-pretty-light, and that is really an incentive for us," Catz said.
"I know some of our competitors, they to own buildings.
That's not really our specialty."— CNBC's Ari Levy contributed to this report.Don’t miss these insights from CNBC Nobel winner Joseph Stiglitz has a warning for bond investorsAs traditional 60/40 portfolios get riskier, BlackRock says investors should rethink their allocationsGoldman adds Walmart to September 'conviction list.' Here's who else made the cutNvidia retail buyers are getting exhaustedWATCH: Oracle s spike more than 12% despite earnings and revenue misswatch now2:0002:00Oracle s spike more than 12% despite earnings and revenue missClosing Bell: Overtime