Oracle stock rises 8% after surpassing earnings and revenue projections.

From left, former Fox Corp. Executive Chairman Rupert Murdoch and Larry Ellison, Oracle’s co-founder, chief technology officer and executive chairman, listen as U.S. President Donald Trump speaks to reporters in the Oval Office of the White House in Washington on Feb. 3, 2025. Anna Moneymaker | Getty Images News | Getty Images

Oracle shares rose about 8% in extended trading on Wednesday after the software maker reported results that exceeded Wall Street estimates and indicated that cloud growth will accelerate.

Here’s how the company performed compared to LSEG consensus:

Earnings per share: $1.70 adjusted vs. $1.64 expected
Revenue: $15.9 billion vs. $15.59 billion expected

Revenue increased 11% year over year during the fiscal fourth quarter, which ended on May 31, according to a statement. Net income rose to $3.43 billion, or $1.19 per share, from $3.14 billion, or $1.11 per share, in the same quarter last year.

The company projected $1.46 to $1.50 in adjusted earnings per share for the fiscal first quarter, with revenue growth anticipated in the range of 12% to 14%. Analysts surveyed by LSEG had expected $1.48 in earnings per share and $14.96 billion in revenue, which implies 12.4% growth.

Cloud infrastructure revenue is expected to increase by more than 70% in the 2026 fiscal year, up from 52% growth in the previous quarter, CEO Safra Catz mentioned during a conference call with analysts. She projected revenues of more than $67 billion for fiscal 2026, compared to the LSEG consensus of $65.18 billion.

Looking further ahead, Oracle is likely to exceed its $104 billion revenue target for fiscal 2029 that it set in September, Catz added.

The company reported that fiscal fourth-quarter revenue from cloud services and license support was $11.7 billion, surpassing the $11.59 billion consensus from analysts polled by StreetAccount. Cloud and on-premises license revenue of $2.01 billion also exceeded StreetAccount’s $1.82 billion consensus.

During the quarter, Oracle announced a partnership with Cleveland Clinic and G42, the United Arab Emirates’ artificial intelligence holding company, on an AI delivery platform for health care. Further collaborations were also announced with IBM. Additionally, SoftBank confirmed it would acquire Oracle-backed chip design startup Ampere for $6.5 billion.

Larry Ellison indicated that Chinese online retailer Temu is transitioning its infrastructure to Oracle’s cloud. Capital expenditures for the 2025 fiscal year surpassed $21 billion, in contrast to less than $7 billion in fiscal 2024. For the new fiscal year, expenditures are expected to exceed $25 billion, according to Catz.

“We are implementing several strategies to manage our capex costs,” Ellison noted. “However, demand remains exceptionally strong. It’s unprecedented. I’ve never witnessed anything like it.” Recently, Oracle received an order from an unnamed client for all available cloud capacity.

“We had to reorganize some resources to fulfill that request,” Ellison commented. “This is a first for us.”

Oracle plays a significant role in OpenAI’s Stargate artificial intelligence infrastructure project; however, Catz specified that Stargate is “not formed yet.”

As of Wednesday’s close, Oracle shares were up 6% for the year, while the S&P 500 index saw an increase of 2%.