Oracle posts 30% revenue growth fueled by AI cloud demand as debts hits $125 billion

Oracle Corp. signage on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, Aug. 12, 2026.

Oracle shares whipsawed on Friday after the software company reported 30% revenue growth for the latest quarter, topping estimates, with sales fueled by strong demand for cloud infrastructure.

The stock popped after the open before sinking back to near flat.

Fiscal first-quarter revenue increased to $19.35 billion, beating LSEG consensus estimates of $19.14 billion. Net income climbed 60% to $4.7 billion 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%.

Even with Friday's rally, Oracle is down about 20% this year on concern about the hefty amount of debt the company has raised to fund its artificial intelligence infrastructure buildout.