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Oracle Shares Surge on AI Cloud Demand

Oracle's shares surged in premarket trading after reporting a 30% revenue growth in its fiscal first quarter. The company's strong demand for its cloud services and rapid data center expansion were key factors. Cloud revenue grew 62% year-over-year to $11.6 billion, with a significant boost from cloud infrastructure revenue. Oracle also booked over $30 billion in AI cloud contracts, and…

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Key points

  • Oracle's shares surged in premarket trading
  • Revenue growth of 30% in the fiscal first quarter
  • Strong demand for cloud services and data center expansion

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Full story from CNBC Technology · by Sawdah Bhaimiya Open source ↗

Oracle jumps 6% after reporting 30% revenue growth fueled by AI cloud demand

CNBC Technology · 11 September 2026

Oracle's shares jumped in premarket trading on Friday after it reported 30% revenue growth in its fiscal first quarter, fueled by strong demand for its cloud services and rapid data center expansion.

The enterprise software giant said total first-quarter revenue grew to $19.35 billion, beating LSEG consensus estimates of $19.14 billion. Its net income reached $4.7 billion, up 60% from $2.93 billion in the prior year.

Cloud revenue rose 62% from a year earlier to $11.6 billion, driven by a 121% jump in cloud infrastructure revenue, while cloud application revenue grew 10%.

Oracle was last up 6.2% in premarket trading, but the stock has declined 21.5% since the beginning of the year.

The company delivered an additional 850 megawatts of data center capacity in the quarter. It also booked over $30 billion in further AI cloud contracts, and delivered more than 300,000 GPUs to its AI Cloud customers.

Oracle is expecting second-quarter revenue to grow 30% and 34%, with cloud revenue rising between 64% and 70%. It expects total revenue for the 2027 fiscal year to be at least $90 billion.

Alongside selling its flagship database software, Oracle has taken on more than $100 billion in debt as it funds an expansive buildout of data centers for AI workloads.

The investment is expected to expand capacity for contracted cloud demand from customers including Nvidia, Meta, OpenAI, AMD and xAI.

Citi analysts reiterated their Buy rating in a Friday note, saying Oracle had met expectations and "cleared the runway" for its upcoming Investor Day.

"Oracle delivered a solid fiscal first quarter that checked nearly every box and reinforces the bull case heading into Investor Day," the analysts said.

Oracle's outlook for 2027 is "modest," and the company's management framework is "conservative," the analysts said.

"Given the magnitude of fiscal first-quarter outperformance, we see a favorable setup for upward revisions at Investor Day and AI World," the analysts added.

— Jordan Novet contributed to this report

This text was published by CNBC Technology and written by Sawdah Bhaimiya. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗

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