Oracle’s Stock Skyrockets as AI Cloud Revenue Doubles by 121%
Oracle Corporation recently reported a remarkable fiscal first quarter, with its stock experiencing a significant surge. This is largely due to the increasing demand for artificial intelligence, which has been a major boost for its cloud business. The company reported a revenue of $19.35 billion, a nearly 30% increase year-over-year, surpassing Wall Street’s consensus estimate of $19.14 billion.
The most noteworthy figure was the cloud infrastructure revenue, which soared 121% to $7.4 billion — more than double the prior year. Meanwhile, the total cloud revenue rose 62% to $11.6 billion. Adjusted earnings per share increased 30% to $1.92, significantly higher than the $1.74 forecasted by analysts. Net income also saw a boost, surging 60% to $4.7 billion.
Oracle attributed this success to the growing demand for AI, stating in its earnings release that “customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply.” During the quarter, the company added 850 megawatts of extra data center capacity and secured over $30 billion in new AI cloud contracts. This has pushed its remaining performance obligations to a record $664 billion.
Among Oracle’s AI data center customers are Nvidia, Meta, OpenAI, AMD, and SpaceX’s AI unit. Looking forward, the management has raised its fiscal 2027 revenue outlook to a minimum of $90 billion, with Q2 cloud revenue growth guidance of 64%–70%. Citi analysts have reiterated a Buy rating with a $330 price target, describing it as a quarter that “checked nearly every box.”
Source: CNBC – Oracle posts 30% revenue growth fueled by AI cloud demand (September 11, 2026)