Oracle Shares Surge on Landmark AI Contracts

Lead: Oracle Corporation shares jumped over 35% on Wednesday after the software giant announced multiple multi-billion-dollar AI contracts and an aggressive cloud revenue forecast, sending its market value toward $950 billion.

Nut Graf: The surge reflects investor enthusiasm for Oracle’s expanding AI and cloud business, underpinned by a record $455 billion in Remaining Performance Obligations and a forecast of 77% cloud revenue growth this fiscal year, positioning the company for accelerated long-term expansion.

Cloud and AI Deals Drive Rally

Signed four multi-billion-dollar AI contracts with three major customers, dubbed “astonishing” by CEO Safra Catz.
Remaining Performance Obligations climbed 359% year-over-year to $455 billion, a new company high.

Upgraded Revenue Forecast Spurs Optimism

Projected cloud infrastructure revenue to grow 77% to $18 billion in FY26, with long-term targets of $32 billion, $73 billion, $114 billion and $144 billion over the next four years.
Barclays raised Oracle’s price target to $281, citing the robust AI-driven growth trajectory.

Market Impact and Wider Indices

Oracle’s gain boosted the S&P 500 by 0.5% to 6,545.94, while the Nasdaq Composite rose 0.3% to 21,950.81.
The Dow Jones Industrial Average dipped 0.1%, reflecting mixed sector performance amid expectations of an imminent Federal Reserve rate cut.

Strategic Outlook

Oracle’s pivot toward AI and cloud services underscores its bid to compete with hyperscale providers, leveraging embedded Exadata hardware, Version 23ai database software, and partnerships with leading AI model developers to drive future contract wins and revenue growth.