Oracle shares spiked 30 % Wednesday after the database software maker indicated hefty growth prospects due to new cloud contracts, even as earnings and revenue missed estimates.
Here's how the company did in comparison with LSEG consensus:
Earnings per share: $1.47 adjusted vs. $1.48 expected
$1.47 adjusted vs. $1.48 expected Revenue: $14.93 billion vs. $15.04 billion expected
Revenue increased 12% from $13.3 billion a year earlier during the quarter, which ended on Aug. 31, according to a statement. Net income was about flat at $2.93 billion, or $1.01 per share, compared to $2.93 billion, or $1.03 per share, in the same quarter last year.
Oracle said Tuesday that its remaining performance obligations, a measure of contracted revenue that has not yet been recognized, soared to $455 billion, up 359% from a year earlier. During the quarter, OpenAI said it signed an agreement with Oracle to develop 4.5 gigawatts of U.S. data center capacity.
Alongside larger cloud providers such as Microsoft , Oracle has been one of the big winners of the artificial intelligence boom, due to its cloud infrastructure business and its access to Nvidia's graphics processing units, or GPUs, needed for large workloads. CEO Safra Catz said in the statement that the company signed four multibillion-dollar contracts with three different customers in the quarter.
Also in the quarter, Oracle said cloud rival Google's Gemini AI models would become available on Oracle's cloud infrastructure.
Oracle shares hit a record last month and are up 45% in 2025 as of Tuesday's close, while the S&P 500 index has gained 11%.