Oracle stock roared 40% higher Wednesday, after reporting gobsmacking cloud demand numbers, setting the company on track for a historic gain.
The cloud giant is on pace for its best day since 1992, and is now quickly approaching the $1 trillion market cap benchmark. Oracle is now at $950 billion.
The company said it has $455 billion in remaining performance obligations, up 359% from a year earlier.
“This is a very historic kind of print right here from Oracle with this backlog,” Ben Reitzes, technology research head at Melius Research, told CNBC’s “Closing Bell: Overtime” on Tuesday. “The Street was looking for about $180 billion in RPO and they’re talking about a number that is a multiple of that. That is astounding.”
Oracle has been one of the biggest benefactors of the artificial intelligence boom thanks to its cloud infrastructure business and its access to Nvidia’s graphics processing units, or GPUs, which are both needed to run large workloads. But competition is fierce, and Oracle is jostling with other cloud providers like Microsoft, Amazon and Google for customers.
Oracle now sees $18 billion in cloud infrastructure revenue in the 2026 fiscal year, with the company calling for the annual sum to reach $32 billion, $73 billion, $114 billion and $144 billion over the subsequent four years.
Other analysts were left “blown away” and “in shock.” D.A. Davidson’s Gil Luria called it “absolutely staggering on CNBC’s “Fast Money.” Wells Fargo analysts said it was a “momentous confirmation” of the artificial intelligence trade.
The company’s founder, Larry Ellison, is set to gain about $100 billion to his net worth, and is now the world’s second riches person behind Tesla CEO Elon Musk, according to Bloomberg’s Billionaires Index.
Oracle one-day stock chart.
Oracle’s cloud revenue projections overshadowed an otherwise lackluster first-quarter report in which the company missed expectations on the top and bottom lines.
The company had earnings of an adjusted $1.47 per share for the quarter, just below the $1.48 per share expected by analysts polled by LSEG. Revenue for the first quarter came in at $14.93 billion, missing the $15.04 billion expected.
–CNBC’s Jordan Novet and Ashley Capoot contributed to this report
