Oracle Shares Surge on Bullish Cloud Outlook

Lead: Oracle’s stock jumped 23% in after-hours trading on Tuesday after the company raised its Oracle Cloud Infrastructure (OCI) revenue forecast to 77% growth for fiscal 2026.

Nut Graf: The rally underscores investor enthusiasm for Oracle’s expanding cloud and AI offerings, as the software giant reported a massive increase in contracted future revenue and secured multibillion-dollar deals.

Cloud Forecast Revision Drives Rally

Oracle now expects OCI revenue to reach $18 billion this fiscal year, up from its prior 70% growth projection, reflecting surging demand for AI-enabled cloud services.
Remaining Performance Obligations (RPO)-a key backlog metric-soared 359% year-over-year to $455 billion, signaling strong future revenue visibility.

Multibillion-Dollar Contracts and AI Partnerships

In Q1, Oracle secured four multibillion-dollar contracts with three distinct clients, contributing heavily to the RPO surge.
The company highlighted its partnership with OpenAI to deploy 4.5 GW of U.S. data-center capacity, reinforcing its position in the AI infrastructure market.

Analyst Commentary and Market Context

“Businesses are clearly keen on affordable AI cloud solutions, and Oracle is strategically positioning itself to meet this demand,” remarked eMarketer analyst Jacob Bourne.
Year-to-date, Oracle’s shares have more than doubled, climbing over 107% in 2025 as investors reward its aggressive cloud-AI strategy.

Outlook and Next Steps

Oracle plans to launch an AI-powered database service in October, allowing clients to run leading AI models directly on Oracle’s data platform, further integrating its database and cloud AI capabilities.