Oracle CEO Safra Catz, middle, speaks throughout a dinner on the White House in Washington on Sept. 4, 2025. President Donald Trump hosted know-how and enterprise leaders for dinner after they joined First Lady Melania Trump’s assembly of the Artificial Intelligence Education Task Force on the White House.
Alex Wong | Getty Images
Oracle shares spiked 22% in prolonged buying and selling on Tuesday after the database software program maker indicated hefty development prospects resulting from new cloud contracts, whilst earnings and income missed estimates.
Here’s how the corporate did compared with LSEG consensus:
- Earnings per share: $1.47 adjusted vs. $1.48 anticipated
- Revenue: $14.93 billion vs. $15.04 billion anticipated
Revenue elevated 12% from $13.3 billion a yr earlier through the quarter, which ended on Aug. 31, in line with a press release. Net earnings was about flat at $2.93 billion, or $1.01 per share, in comparison with $2.93 billion, or $1.03 per share, in the identical quarter final yr.
Oracle mentioned its remaining efficiency obligation, a measure of contracted income that has not but been acknowledged, now stands at $455 billion, up some 359% from a yr earlier. During the quarter OpenAI mentioned it signed an agreement with Oracle to develop 4.5 gigawatts of U.S. knowledge middle capability.
Alongside bigger cloud suppliers reminiscent of Microsoft, Oracle has been one of many massive winners of the synthetic intelligence increase, resulting from its cloud infrastructure enterprise and its entry to Nvidia’s graphics processing items (GPUs) wanted for big workloads. CEO Safra Catz mentioned within the assertion that the corporate signed 4 multibillion-dollar contracts with three totally different clients within the quarter.
Also within the quarter, Oracle mentioned cloud rival Google’s Gemini AI fashions would become available on Oracle’s cloud infrastructure.
Oracle’s generated $3.3 billion in income from cloud infrastructure, up 55% from a yr earlier. The development charge was 52% within the fiscal fourth quarter.
According to the assertion, Oracle now sees $18 billion in cloud infrastructure income within the 2026 fiscal yr, in line with the assertion. That suggests 75% development from the $10.3 billion whole in fiscal 2025. The firm referred to as for the sum to succeed in $32 billion, $73 billion, $114 billion and $144 billion in 2027, 2028, 2029 and 2030 fiscal years.
In July, Microsoft mentioned it produced $75 billion in income from its Azure cloud infrastructure up to now 12 months. Market chief Amazon’s cloud income in the identical interval approached $112 billion.
Oracle shares hit a report final month and are up 45% in 2025 as of Tuesday’s shut, whereas the S&P 500 index has gained 11%.
A achieve of twenty-two% or higher on Wednesday would characterize the most effective day for the inventory for the reason that dot-com increase of 1999 and its third-sharpest rally ever. It would additionally elevate the corporate’s market cap previous $800 billion.
Executives will focus on the outcomes and situation steering on a convention name beginning at 5 p.m. ET.
This is growing information. Please verify again for updates.
— CNBC’s Ari Levy contributed to this report
WATCH: Oracle shares spike more than 12% despite earnings and revenue miss
