Oracle Stock Rises 27% on Cloud Backlog Surge to $455 Billion

Oracle's stock surged significantly, up to 27% in extended trading, following the announcement of a remarkable 359% increase in its cloud backlog, reaching $455 billion in remaining performance obligations (RPO). CEO Safra Catz highlighted four multi-billion-dollar cloud contracts signed in the first quarter, including key deals with Nvidia, OpenAI, TikTok, and the US Department of Agriculture, with expectations that RPO will surpass half a trillion dollars soon. Oracle's cloud infrastructure revenue rose 55% year-over-year to $3.3 billion last quarter, with forecasts to reach $18 billion this fiscal year and $144 billion by 2030, driven by a multi-cloud strategy and expanded data center partnerships, including collaborations with hyperscalers and AI projects such as Project Stargate. Despite narrowly missing earnings estimates, investors remain bullish due to Oracle's aggressive cloud expansion, its competitive positioning with AI integration, and substantial growth in multi-cloud revenue. CEO Catz also emphasized the upcoming launch of an Oracle AI Database service and reiterated the company's commitment to supporting large enterprises' AI initiatives with cost-effective cloud solutions. Oracle's market capitalization is approaching $800 billion, reflecting strong investor confidence in its cloud transformation and future growth prospects.