Oracle surges 31% on cloud growth prospects

Oracle is soaring 31% in premarket trading after reporting financial results for the first quarter of fiscal 2026 on Wednesday. Growth prospects in the cloud sector justify today's surge.

"Oracle Cloud Infrastructure revenue is expected to grow 77% to $18 billion this fiscal year—and then to $32 billion, $73 billion, $114 billion, and $144 billion in the subsequent four years." Oracle CEO Safra Catz said this on Wednesday, and is the reason for the over 30% surge in Oracle shares.

These are just some of the data that will be included in the company's "major upward review" of the cloud , which will be presented in detail in October, the CEO confirmed.

Safra Catz also confirmed that demand for Oracle Cloud Infrastructure “continues to grow” and that in the coming months the company “expects to win” several additional multi-billion dollar customers, leading to total remaining performance obligations (RPO) exceeding half a trillion dollars (trillion in the US denomination).

Company saw a 359% increase in RPO

Regarding the first quarter of fiscal year 2026, the company 's CEO confirmed that "four multi-billion dollar contracts were signed with three different clients." These contracts led to a 359% increase in the RPO backlog to $455 billion, noted Safra Cataz.

In the first quarter, Oracle's revenue rose 12% to $14.9 billion, compared to the previous year, while its cloud business saw revenue grow 28% to $7.2 billion.

“Software revenue fell 1% to $5.7 billion,” the company reported.

"Operating income (non-GAAP) was $6.2 billion, an increase of 9%. Net income (non-GAAP) was $4.3 billion, an increase of 8%," Oracle noted.

The company also reported that deferred revenue reached $12.1 billion and that in the last twelve months operating cash flow reached $21.5 billion, an increase of 13%.

"MultiCloud database revenue from Amazon, Google, and Microsoft grew at an incredible 1,529% in the first quarter," said Oracle President and CTO Larry Ellison.

“We expect MultiCloud revenue to grow substantially each quarter for the next few years as we deliver 37 more data centers to our three Hyperscaler partners, bringing our total to 71. In October at Oracle AI World, we will introduce a new Cloud Infrastructure service called Oracle AI Database, which enables our customers to use any Large Language Model (LLM) they choose—including Google’s Gemini, OpenAI’s ChatGPT, xAI’s Grok, and more—directly on top of Oracle Database to easily access and analyze all their existing database data. This revolutionary new cloud service enables tens of thousands of our database customers to instantly unlock the value of their data by making it easily accessible to the most advanced artificial intelligence (AI) reasoning models,” added Larry Ellison.