Oracle’s Stock Surges to Historic Levels as AI-Driven Cloud Business Promises Unprecedented Growth

Record-Breaking Stock Performance

Oracle Corporation’s shares achieved their biggest gain since 1992, following the company’s aggressive outlook for its cloud business, which has established the software maker as a major player in AI computing. The stock experienced a dramatic 28% after-hours rally, with trading reaching $310, surpassing its previous record close of $256.43 from last month.

Unprecedented Financial Projections

Oracle has unveiled ambitious projections for its cloud infrastructure revenue, forecasting growth from $10.3 billion in fiscal 2025 to $18 billion in fiscal 2026 (a 77% increase), followed by dramatic increases to $32 billion, $73 billion, $114 billion, and ultimately reaching $144 billion over the subsequent four years.

AI Partnerships and Strategic Growth

The company has strengthened its position in the AI market through strategic partnerships, including deals with Google and OpenAI. Oracle will launch an AI Database service in October that will enable running AI models from OpenAI and other companies on client data stored in Oracle databases. The company has already integrated OpenAI’s new GPT-5 AI model into its cloud applications.

Record-Breaking Contract Backlog

Oracle’s remaining performance obligation (RPO), representing the total value of future contract revenue, has seen remarkable growth. The company signed four multibillion-dollar contracts with three different customers in Q1, resulting in a contract backlog increase of 359% to $455 billion. Executives expect to secure several additional multibillion-dollar customers and anticipate RPO exceeding half a trillion dollars.

Market Impact and Analyst Response

Industry analysts have noted that these quarterly results are unprecedented in terms of both magnitude and significance. Analysts highlight that while profitability of AI workloads remains a debated topic, Oracle is clearly gaining market share in the rapidly expanding AI infrastructure market. The company now competes directly with industry giants Amazon, Microsoft, and Google in cloud infrastructure, with Wall Street particularly focused on Oracle’s forward-looking numbers and massive growth trajectory driven by its booming cloud infrastructure business and AI deals.