Catenaa, Wednesday, September 10, 2025- Oracle stock jumped more than 31% on Wednesday after the software giant said its AI-fueled cloud revenue is set to jump to $144 billion by its 2030 fiscal year.
That marks a massive leap from the company’s projection of less than $20 billion for the business in its current fiscal year.
“We expect Oracle Cloud Infrastructure revenue to grow 77% to $18 billion this fiscal year — and then increase to $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years,” CEO Safra Catz said in a statement on Tuesday.
The stock’s gain comes despite Oracle reporting earnings for the first quarter of its fiscal year 2026 that fell below Wall Street’s expectations. The Oracle stock is up by 91% so far in the year.
The company reported revenue of $14.9 billion, slightly below the $15 billion expected by analysts polled by Bloomberg. The software giant’s adjusted earnings per share of $1.47 also came in below the projected $1.48.
Oracle’s optimistic revenue outlook came as it raised its RPO, or remaining performance obligation, the total value of contract revenue Oracle will deliver in the future, based on customer agreements.
“We signed four multibillion-dollar contracts with three different customers in Q1,” Catz said in a statement Tuesday. Catz said this resulted in the company’s contract backlog increasing 359% to $455 billion in its first quarter.
The executive added that the company expects to sign up several additional multibillion-dollar customers and for its RPO to exceed half a trillion dollars.
“We have signed significant cloud contracts with the who’s who of AI, including OpenAI, xAI, Meta, and many others,” Catz said in a call with investors following the company’s earnings report.
The software giant stated that its capital expenditures are expected to increase to approximately $35 billion in 2026, up from its previous outlook of around $25 billion for the year and $21 billion in 2025.
