Oracle Soars 20% on Massive Cloud Contracts and AI Boom

On September 9, 2025, Oracle, the database software giant, reported strong growth prospects that sent its stock soaring 20% in extended trading. Despite missing earnings and revenue estimates, the company's performance has been bolstered by the ongoing AI boom and its cloud infrastructure business.

One of the key highlights was Oracle's remaining performance obligation, a measure of contracted revenue that has not yet been recognized. This figure now stands at $455 billion, up a staggering 359% from a year earlier. CEO Safra Catz also revealed that the company signed four multibillion-dollar contracts with three different customers during the quarter.

Oracle's cloud infrastructure revenue grew 55% year-over-year, building on the 52% growth seen in the previous quarter. This surge can be attributed to the company's ability to provide the necessary cloud infrastructure and access to Nvidia's powerful graphics processing units (GPUs) that are crucial for large AI workloads.

The company's strong performance has been in line with the broader trend in the tech industry, where larger cloud providers like Microsoft have also been benefiting from the AI boom. Oracle's partnership with OpenAI to develop 4.5 gigawatts of U.S. data center capacity further solidifies its position in the rapidly evolving AI landscape.