Topline
Oracle’s stock jumped over 7% premarket on Friday after the company reported 121% growth in cloud infrastructure revenue and signed more than $30 billion in new AI cloud contracts in the first quarter of fiscal year 2027, offering investors evidence that its AI spending is paying off.
REDWOOD SHORES, CALIFORNIA – MARCH 10: The Oracle logo is displayed on a building at an Oracle campus on March 10, 2025 in Redwood Shores, California. Oracle will report third quarter earnings today after the closing bell. (Photo by Justin Sullivan/Getty Images)
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Key Facts
Oracle’s stock rose over 7% premarket before settling up 2.74% at $157.12 around 10:15 a.m., after rising 4% in extended trading on Thursday when the company reported that total revenue rose 30% to $19.34 billion, beating estimates of $19.14 billion.
Cloud revenue jumped 62% to $11.6 billion, led by a 121% increase in cloud infrastructure revenue to $7.4 billion.
Oracle reported signing more than $30 billion in additional AI cloud contracts during the quarter, lifting remaining performance obligations to $664 billion and beating estimates of $639.89 billion.
The company maintained its annual spending target of $90 billion to $95 billion, with the firm saying the majority of the new contracted revenue won’t require them to spend a lot of money on chips.
The company expects at least $90 billion in revenue for fiscal year 2027, and raised its adjusted earnings forecast to $8.10 per share, beating analysts’ $8.07 estimate.
Oracle’s shares were down more than 21% for the year ahead of Thursday’s release, driven by investor concerns about heavy AI spending.
KEY BACKGROUND
Oracle has been spending a significant amount on data centers and computing capacity, with capital expenditures jumping to $28.5 billion in the last quarter from $8.5 billion a year earlier. The company said it spent around $55.7 billion in 2026, surpassing its own projections by more than $5 billion, which raised investor concerns about its spending. They have been questioning whether Oracle could generate enough revenue and cash flow to justify the substantial spending, pushing the company’s shares down over 21% this year.
FORBES VALUATION
Oracle founder Larry Ellison’s net worth has moved around this year as Oracle’s stock struggled, dropping from the world’s second-richest person to the eighth between June and August. In early September he passed Nvidia CEO Jensen Huang, claiming the seventh spot with a net worth of $201.8 billion as of 10:15 a.m. EDT.
FURTHER READING
Larry Ellison Passes Jensen Huang For 7th-Richest As Oracle Shares Soar (Forbes)
How Larry Ellison Dropped From World’s 2nd-Richest To No. 8 In Just 2 Months (Forbes)
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