Oracle CEO Safra Catz, middle, speaks throughout a dinner on the White Home in Washington on Sept. 4, 2025. President Donald Trump hosted know-how and enterprise leaders for dinner after they joined First Girl Melania Trump’s assembly of the Synthetic Intelligence Schooling Job Power on the White Home.
Alex Wong | Getty Photographs
Oracle shares spiked 22% in prolonged buying and selling on Tuesday after the database software program maker indicated hefty progress prospects resulting from new cloud contracts, whilst earnings and income missed estimates.
Here is how the corporate did as compared with LSEG consensus:
- Earnings per share: $1.47 adjusted vs. $1.48 anticipated
- Income: $14.93 billion vs. $15.04 billion anticipated
Income elevated 12% from $13.3 billion a 12 months earlier through the quarter, which ended on Aug. 31, in keeping with a press release. Internet 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 12 months.
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 12 months earlier. Through the quarter OpenAI mentioned it signed an settlement with Oracle to develop 4.5 gigawatts of U.S. knowledge middle capability.
Alongside bigger cloud suppliers resembling Microsoft, Oracle has been one of many massive winners of the bogus intelligence growth, resulting from its cloud infrastructure enterprise and its entry to Nvidia’s graphics processing models (GPUs) wanted for big workloads. CEO Safra Catz mentioned within the assertion that the corporate signed 4 multibillion-dollar contracts with three completely different prospects within the quarter.
Additionally within the quarter, Oracle mentioned cloud rival Google’s Gemini AI fashions would change into obtainable on Oracle’s cloud infrastructure.
Within the assertion, Larry Ellison, Oracle’s co-founder, chairman and know-how chief, mentioned that in October the corporate will deliver out an Oracle AI Database service that may enable for operating AI fashions from OpenAI and different corporations atop consumer knowledge saved in Oracle databases. The hassle would deepen Oracle’s product integration with OpenAI. In August, Oracle mentioned it has introduced OpenAI’s new GPT-5 AI mannequin to its cloud functions.
Oracle’s generated $3.3 billion in income from cloud infrastructure, up 55% from a 12 months earlier. The expansion fee was 52% within the fiscal fourth quarter.
In keeping with the assertion, Oracle now sees $18 billion in cloud infrastructure income within the 2026 fiscal 12 months, in keeping with the assertion. That means 75% progress from the $10.3 billion whole in fiscal 2025. The corporate referred to as for the sum to achieve $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 previously 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 symbolize the most effective day for the inventory for the reason that dot-com growth of 1999 and its third-sharpest rally ever. It might additionally raise the corporate’s market cap previous $800 billion.
Executives will focus on the outcomes and problem steerage on a convention name beginning at 5 p.m. ET.
That is creating information. Please examine again for updates.
— CNBC’s Ari Levy contributed to this report
WATCH: Oracle shares spike greater than 12% regardless of earnings and income miss
