Oracle stock surged in premarket trading on Friday after the enterprise software giant delivered better-than-expected quarterly results and showed that its massive investment in artificial intelligence infrastructure is translating into growing cloud revenue.
Shares were up about 7% to $163.67 ahead of the opening bell after reversing Thursday’s 5.51% decline that left Oracle at $152.66.
Oracle stock price over the past 24 hours (Source: CoinCodex)
Oracle reported adjusted earnings of $1.92 per share for its fiscal first quarter, comfortably beating the $1.74 expected by analysts. Revenue climbed roughly 30% year over year to $19.35 billion, which also topped the $19.14 billion consensus estimate.
GAAP net income reached $4.76 billion, while net income available to common shareholders was about $4.68 billion, compared with $2.93 billion a year earlier.
Oracle’s AI Cloud Business Explodes Higher
The biggest driver was Oracle Cloud Infrastructure, where revenue jumped 121% from a year earlier to $7.4 billion. Overall cloud revenue increased 62% to $11.61 billion.
(Source: Oracle)
Oracle said it booked more than $30 billion in additional AI cloud contracts during the quarter, lifting remaining performance obligations to a massive $664 billion.
The company also delivered more than 300,000 GPUs to AI cloud customers since the end of its previous quarter and added 850 megawatts of data center capacity. Oracle said demand for AI training and inference services is exceeding available supply.
Those figures appear to be easing concerns that Oracle’s aggressive AI infrastructure expansion could leave it with enormous spending requirements without sufficiently fast revenue growth.
Capital expenditures jumped to $28.5 billion during the quarter from $8.5 billion a year earlier. This contributed to negative free cash flow of approximately $5.4 billion. Oracle nevertheless maintained its full-year capital expenditure outlook of roughly $90 billion to $95 billion.
Oracle Raises Its Full-Year Outlook
For the fiscal second quarter, Oracle expects revenue growth of 30% to 34% and adjusted earnings of $1.85 to $1.93 per share. The company now expects fiscal 2027 adjusted earnings of at least $8.10 per share on revenue of at least $90 billion, slightly above Wall Street expectations.
The earnings beat comes at an important time for Oracle investors. Even after Friday’s premarket surge, the stock is still much lower for 2026 after months of concern over debt, enormous AI infrastructure spending and whether Oracle could convert its huge backlog into actual revenue.
The latest quarter gives investors some evidence that conversion is already accelerating.
