Oracle pops 21% on growth projections even as earnings miss estimates

Oracle's stock experienced a remarkable 21% increase in after-hours trading on Tuesday, driven by the company's optimistic growth outlook, even as it reported earnings and revenues that fell short of expectations. In its latest quarter, which concluded on August 31, Oracle revealed a revenue increase of 12% compared to the same period last year. However, net income remained relatively unchanged at $2.93 billion, translating to $1.01 per share, a slight decline from $1.03 per share a year earlier. The company highlighted a significant rise in its remaining performance obligation, a crucial metric indicating contracted revenue yet to be realized, which now stands at an impressive $455 billion—an increase of around 359% year-over-year. Notably, OpenAI recently entered into a partnership with Oracle to expand data center capabilities by developing 4.5 gigawatts of capacity in the U.S. This collaboration underscores Oracle's positioning alongside major cloud players like Microsoft, benefiting from the ongoing AI surge due to its robust cloud infrastructure and access to Nvidia's powerful GPUs. CEO Safra Catz announced that Oracle secured four multibillion-dollar contracts with three distinct clients during the quarter. Additionally, Oracle confirmed that Google's Gemini AI models will soon be available on its cloud infrastructure, enhancing its competitive edge. The company's cloud infrastructure revenue reached $3.3 billion, marking a substantial 55% growth, with a 52% increase recorded in the fiscal fourth quarter alone. Oracle's stock has soared 45% in 2025 as of the latest trading close, significantly outperforming the S&P 500 index, which has seen an 11% rise. If Oracle's shares continue to climb by 22% on Wednesday, it would mark its most substantial single-day gain since the dot-com boom of 1999, pushing the company's market capitalization beyond $800 billion. Company executives are set to elaborate on these results and provide future guidance during a conference call at 5 p.m. ET. Updates on this developing story are expected shortly.