Oracle’s stock experienced a significant surge, rising over 28% in premarket trading after the company revealed ambitious projections for its AI-driven cloud revenue. CEO Safra Catz announced that Oracle anticipates this revenue stream will soar to $144 billion by its 2030 fiscal year, a remarkable increase from the current year’s projections of under $20 billion.
Catz detailed that the company expects Oracle Cloud Infrastructure revenue to jump 77% to $18 billion in the current fiscal year. This growth trajectory is predicted to continue with respective revenues of $32 billion, $73 billion, $114 billion, and ultimately $144 billion over the next four years.
Remarkably, this surge in stock price occurred despite Oracle reporting disappointing earnings for the first quarter of fiscal year 2026, which fell short of Wall Street expectations. The company posted a revenue of $14.9 billion, slightly below the $15 billion forecasted by analysts. Furthermore, its adjusted earnings per share of $1.47 did not meet the anticipated $1.48.
Oracle’s laundry list of good news was highlighted by Catz’s announcement of a substantial rise in its Remaining Performance Obligation (RPO), which represents the total value of contract revenue the company will guarantee in the future. Oracle managed to secure four multibillion-dollar contracts with three different customers in the last quarter, leading to a staggering 359% increase in contract backlog to $455 billion. Catz noted expectations of signing additional multibillion-dollar clients, with predictions that RPO could exceed half a trillion dollars.
In a call with investors, Catz elaborated on Oracle’s growing partnerships with industry giants in AI, including OpenAI, xAI, and Meta. The company has aggressively sought NVIDIA’s high-demand GPUs and is supplying that computing power through its Oracle Cloud Infrastructure, positioning itself as a formidable competitor to big tech rivals like Amazon and Google.
Despite its expanding cloud initiatives, Oracle has made some tough decisions, laying off employees and discussing the elimination of cash raises and bonuses this year. The capital expenditures forecast is now set to increase to roughly $35 billion in 2026, surpassing prior estimates of about $25 billion for the current year.
Over the past year, Oracle’s shares have soared by more than 70%. Investors remain keenly interested in the latest developments, particularly regarding a new deal expected to generate over $30 billion in annual revenue starting in its 2028 fiscal year, believed to be with OpenAI.
Additionally, there is anticipation surrounding Oracle’s involvement in the Stargate AI project, a massive $500 billion initiative introduced at the White House earlier this year by the CEOs of Oracle, OpenAI, and SoftBank, and supported by President Trump. Although slower than expected in its rollout, OpenAI has indicated that its collaboration with Oracle on a data center in Texas is progressing.
In a previous earnings call, Catz indicated that while the Stargate project is not fully operational yet, there are components of Oracle’s business with OpenAI that will contribute to its future growth.
