Oracle Cloud Orders Near $500 Billion, Shares Jump 27%

Oracle (ORCL.N) announced Tuesday that it expects its booked revenue in cloud infrastructure to surpass half a trillion dollars, sending shares soaring 27% after hours. The surge reflects rising demand for its low-cost AI cloud infrastructure and strong multi-cloud partnerships.

Key Highlights

• Booked Revenue (RPO): Jumped 359% year-on-year to $455 billion in Q1 (ending August 31).

• Future Growth: CEO Safra Catz said upcoming multi-billion-dollar deals are expected to push RPO beyond $500 billion.

• Revenue Forecast: Oracle projects 77% growth in OCI revenue this fiscal year to $18B, rising to $144B over the next 4 years.

• AI Integration: Customers can now directly connect databases to ChatGPT, Gemini, and Grok via Oracle Cloud.

• MultiCloud Strategy: Partnerships with Amazon, Google, and Microsoft drove a 1,529% increase in first-quarter multi-cloud revenue. Oracle plans 37 new datacenters, bringing the total to 71 with hyperscaler partners.

Market Impact

• Shares: Up 45% YTD, boosted further by the after-hours spike.

• Contracts: Four multi-billion-dollar deals with three customers supported overall Q1 revenue growth of 12% to $14.93B.

• Q2 Guidance: Total revenue expected to rise 12–14%, with cloud revenue growing 32–36%.

Analyst Views

• Analysts see Oracle emerging as a key AI cloud player, despite being smaller than hyperscaler rivals.

• “Oracle is not just keeping up but actually leading the way in the cloud space,” said Melissa Otto, S&P Global Visible Alpha.

• Jacob Bourne, eMarketer: “Enterprises are clearly eager for cost-effective AI cloud tools, and Oracle is positioning itself to capture that demand.”