Oracle shares soared 36% to a record high, marking their biggest single-day gain since December 1992. The surge added about $250 billion to the company’s market capitalization, underscoring investor confidence in Oracle’s long-term cloud and AI strategy. The rally came despite Oracle’s Q1 FY26 results falling slightly short of Wall Street expectations. Revenue reached $14.9 billion, just below the $15 billion forecast, while adjusted EPS was $1.47 versus $1.48 expected.
CEO Safra Catz revealed that in the first quarter Oracle signed four multi-billion-dollar contracts with three major customers, boosting its backlog of future revenue (RPO) by 359% to $455 billion. She called it an “astonishing quarter” and noted that demand for Oracle Cloud Infrastructure (OCI) is still growing rapidly.
In the months ahead, Oracle expects to secure larger contracts, potentially pushing backlog above $500 billion. Catz forecasts OCI revenue to rise 77% to $18 billion this year and expand to $144 billion by FY2030.
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The surge in demand not only fueled Oracle’s record stock performance but also briefly pushed CTO Larry Ellison’s net worth up by $101 billion, briefly making him the world’s richest person before Elon Musk reclaimed the top spot, according to Bloomberg.
While these financial gains grabbed headlines, Oracle’s long-term bet lies in large-scale AI infrastructure, most notably the $500 billion Stargate project with OpenAI and SoftBank.
Oracle is investing heavily in AI-cloud infrastructure, including the $500 billion Stargate project with OpenAI and SoftBank. While partial progress is reported at the Abilene data center, the initiative aims to drive multi-billion-dollar revenue by FY28. Oracle will soon introduce the Oracle AI Database, a cloud service that allows customers to run large language models (Google’s Gemini, OpenAI’s ChatGPT, xAI’s Grok) on top of Oracle Database and use advanced AI reasoning models to access and leverage all the information in their existing databases.
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