Oracle Shares Soar 26.8% Following Strong Cloud Outlook and Record Contract Backlog

September 10, 2025

📈 Oracle Corporation (NYSE: ORCL) surged 26.8% in after-hours trading on Tuesday, reaching $306.14, after reporting robust cloud growth projections and a sharp rise in contracted revenue, despite flat statutory net income for Q1 FY26.

CEO Safra Catz described the quarter as “astonishing,” citing a 359% year-over-year increase in remaining performance obligations (RPO) to $455 billion—an indicator of future revenue. Oracle expects its Cloud Infrastructure revenue to grow 77% to $18 billion this fiscal year, with projections reaching $144 billion by FY30.

💼 The company signed four multi-billion-dollar contracts in Q1 and anticipates additional deals that could push RPO beyond $500 billion. Underlying figures showed a 6% rise in earnings per share and an 8% increase in net income, despite higher operating costs and taxes offsetting a 12% revenue gain.

Cloud revenue rose 28%, while hardware and services saw modest growth. Software revenue declined by 1%. Oracle’s MultiCloud database services—integrated with Amazon, Google, and Microsoft—grew 1,529% in Q1, according to Chairman Larry Ellison.

With a market capitalization now exceeding $678 billion, Oracle’s performance underscores growing demand for cloud infrastructure and AI-driven enterprise solutions. Investors responded positively, marking the company’s largest single-day gain in over a year.

Oracle-Corporation-Headquarters-Picture-by-Gregory-Varnum