Oracle Corp. share price surged more than 28% in extended trading after the company reported a sharp rise in bookings and issued a strong growth outlook for its cloud infrastructure business. Oracle shares closed 1.27% higher at $241.51 on Tuesday and jumped another 28.36% to $310.00 in after-hours trade.
For the fiscal first quarter ended August 31, Oracle’s revenue rose 12% year-on-year (YoY) to $14.93 billion, up from $13.3 billion, led by four multi-billion-dollar contracts signed with three major customers. However, revenue fell short of Street estimates of $15.04 billion, according to LSEG data.
The company’s net income in Q1 was broadly flat at $2.93 billion, or $1.01 per share, compared with $2.93 billion, or $1.03 per share, a year earlier.
The rally in Oracle’s stock was underpinned by expectations that booked revenue at its Oracle Cloud Infrastructure (OCI) unit will exceed $500 billion. The company’s remaining performance obligations (RPO) surged 359% year-on-year to $455 billion in Q1. Oracle projected OCI revenue growth of 77% to $18 billion this fiscal year, rising further to $144 billion over the next four years.
For the second quarter, Oracle expects overall revenue growth of 12%–14%, with cloud revenue expanding 32%–36%.
“Over the next few months, we expect to sign-up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars,” said CEO Safra Catz.
Oracle has also deepened partnerships with Amazon, Alphabet and Microsoft, enabling OCI to run within their respective cloud infrastructures. Revenue from these alliances surged 1,529% in Q1, Reuters reported.
“We made it very easy for our customers to directly connect all their databases … to the world’s most advanced AI reasoning models — ChatGPT, Gemini, Grok, all of which are uniquely available in the Oracle Cloud,” Catz said on a post-earnings call.
Oracle Share Price Performance
Oracle shares touched a record high last month and are up more than 45% in 2025 through Tuesday’s close, compared with an 11% gain in the S&P 500 index. The stock has advanced 62% over the past six months and 73% over the past year.
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