Oracle just delivered its latest earnings report, and while revenue and profit slightly missed Wall Street expectations, the company's bold outlook for cloud infrastructure has sent its stock price soaring. On September 10, Oracle shares surged nearly 36%, marking a historic high and putting the company firmly in the spotlight of the AI-driven cloud boom.

For the quarter ending August 31, adjusted earnings per share came in at $1.47, just a cent below analyst forecasts, while revenue reached $14.93 billion, missing expectations of $15.04 billion. The real star was Oracle's cloud infrastructure division, which posted $3.3 billion in revenue, a 55% year-over-year increase and an acceleration from the prior quarter's 52%.

Another major highlight came from Oracle's remaining performance obligations (RPO), which skyrocketed 359% year-over-year to $455 billion. A huge part of this momentum is tied to its deal with OpenAI, which includes a massive 4.5 GW data center project slated to begin in 2027. According to insiders, the two companies also signed a five-year compute capacity agreement worth an estimated $300 billion.

CEO Safra Catz revealed that Oracle secured four multi-billion-dollar contracts during the quarter, spanning clients across three different industries. These wins, combined with accelerating demand, mean Oracle's future contracted revenue is now estimated to be around four times that of Google Cloud. Management is now projecting cloud infrastructure revenue of $18 billion for fiscal 2026, up 77% from $10.3 billion last year. Looking further ahead, Oracle has laid out an aggressive roadmap, targeting $32 billion, $73 billion, $114 billion, and eventually $144 billion in annual cloud revenue within the next four years — an eightfold jump from current levels.

Larry Ellison, Oracle's cofounder and chairman, highlighted that the company is on track to deliver 71 data centers for three hyperscale cloud partners, with 37 new facilities already in the pipeline. This expansion also ties into Oracle's July deal with OpenAI to co-develop a 4.5 GW data center in the U.S. as part of the government-backed "Stargate" project. By August, Oracle had integrated OpenAI's GPT-5 model into its applications and announced plans to launch its own AI database service in September, giving clients the ability to run AI models directly with their own data.

To support this growth, Oracle plans $35 billion in capital spending for fiscal 2026, up from $25 billion the previous year, with most of it going into servers and networking gear — a strong signal of demand for AI compute, especially GPUs.

The market reaction was immediate: after the earnings call, Oracle stock jumped 28% in after-hours trading and continued to climb the next day, closing up 35.95% at $328.33 per share. That's the highest price in the company's history since its founding in 1977, pushing its market cap past $920 billion.