Oracle The stock rose 35.95% higher on Wednesday after reporting Gobsmacking Cloud demand.
The Cloud giant hit a record high and had its best day since 1992. Oracle has a market capitalization of $244 billion, and is currently $922 billion.
The company said Tuesday after the Bell that its remaining performance obligation was $455 billion, up 359% from the previous year.
“This is a very historic kind of printing here from Oracle with this backlog,” Ben Reitzes, head of technology research at Melius Research, told CNBC’s Closing Bell: Overtime on Tuesday. “The streets were looking for an RPO of about $180 billion, and they’re talking about numbers that are multiples. That’s amazing.”
Oracle is one of the biggest benefits of the artificial intelligence boom thanks to its cloud infrastructure business and Nvidia’s graphics processing units, or access to GPUs needed to run large workloads. However, the competition is fierce and Oracle is shaking with other cloud providers Microsoft, Amazon and Google For customers.
Oracle One-Day Stock Chart.
Oracle founder Larry Ellison added $100 billion to his net worth on Wednesday. Bloomberg reported he was on top Tesla CEO Elon Musk is the world’s wealthiest person.
Also, Forbes, who ranks the world’s wealthiest people, had Musk on the list before Ellison, but it was not updated since 5pm on Tuesday.
Oracle is currently looking at $18 billion in cloud infrastructure revenue for fiscal year 2026, and the company is hoping to reach $32 billion, $73 billion, $114 billion and $144 billion annually.
Other analysts were left in “blown” and “shocked.” Da Davidson’s Gil Luria makes it “absolutely amazing to CNBC’s ‘Fast Money’. Analysts at WellsFargo said it was a “significant confirmation” of AI trade.
Analysts at Deutsche Bank wrote in a memo on Wednesday that Oracle’s results were “really amazing,” highlighting the company’s position as a leader in AI infrastructure.
They repeated the purchase ratings of stocks and raised their price target from $240 to $335.
“In nearly 20 years of covering Oracle, we’ve covered the entire software industry, so there are very few quarterly results that match the F1Q, both in terms of the magnitude of the fix and the clarity of the moment,” the analyst said.
Analysts at Bank of America said Oracle’s “exceptional backlog” would solidify its location as a “critical AI enabler.” They upgraded the stock to buy from neutral in Wednesday’s note.
“While the profitability of AI workloads remains an important discussion, it is clear that Oracle is gaining share in a large, rapidly growing market of AI infrastructure,” the analyst wrote.
Oracle’s cloud revenue forecasts overshadowed an otherwise inactive fiscal first quarter report where the company missed top-line and bottom-line expectations.
The company had an adjusted $1.47 earnings of $1.47 per share for the quarter, below the $1.48 per share expected by analysts voted by LSEG. First quarter revenue was $14.93 billion, missing the expected $15.04 billion.
– CNBC’s Jordan Novel contributed to this report.
