Oracle’s Stunning Forecast Turns Heads
Oracle’s cloud revenue and AI growth projections have left Wall Street analysts almost speechless. The tech giant expects cloud infrastructure revenue to skyrocket from $18 billion this year to an eye-popping $144 billion within four years. That explosive trajectory sent Oracle’s stock soaring 28% in after-hours trading, marking its biggest surge since the dot-com era.
Analysts React with Shock and Excitement
Guggenheim’s John DiFucci admitted he was “blown away.” TD Cowen’s Derrick Wood called it a “momentous quarter,” while Deutsche Bank’s Brad Zelnick said, “We’re all kind of in shock.” Their reactions came as Oracle’s forward-looking numbers, not its earnings miss, dominated the conversation.
Market Impact and Stock Surge
Oracle shares jumped to $310 in extended trading, far surpassing the record $256 close from last month. If momentum holds, the company’s market cap could climb past $870 billion. Wall Street’s enthusiasm reflects faith in Oracle’s role in the rapidly expanding AI and cloud computing space.
Cloud Growth Driving the Boom
Oracle said cloud infrastructure revenue will rise 77% this year to $18 billion, up from $10 billion last year. By fiscal 2027, revenue is projected to nearly double to $32 billion before hitting $73 billion, $114 billion, and finally $144 billion.
CEO Safra Catz revealed Oracle signed four multi-billion-dollar contracts with three major customers last quarter. OpenAI also agreed to build 4.5 gigawatts of U.S. data center capacity with Oracle.
Balancing Costs and Expansion
Catz emphasized Oracle’s focus on technology and system design over owning physical data centers. “Our specialty is the unique technology, the networking, the storage — the way we put these systems together,” she explained.
Remaining performance obligations, a measure of contracted revenue, soared 359% year-over-year to $455 billion. Analysts praised the figure but pressed for clarity on infrastructure costs to meet demand.
A Word of Caution
While analysts praised the staggering projections, D.A. Davidson’s Gil Luria warned that some growth stems from hyperscalers like Microsoft, Google, and Amazon redirecting capacity to Oracle. “These are not organic customers,” he noted, recommending caution even amid the surge.
Oracle’s Future in AI and Cloud
With shares already up 46% this year compared to the Nasdaq’s 13%, Oracle has firmly positioned itself at the heart of cloud and AI infrastructure. Analysts agree the results signal a seismic shift in computing, one that could redefine Oracle’s place among the tech giants.
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