“We’re all shocked.” Oracle Projections analysts Slackjawed

John Diffucci of Guggenheim Securities said he was “blowed away.” Derrick Wood of TD Cowen called it a “significant quarter.” And Brad Zelnick of Deutsche Bank said, “We’re in a very good way, and we’re all shocked.”

That’s how analysts opened comments and questions Oracle’s Quarterly revenue was called on Tuesday as the company’s share price was during a 28% off-hours rally. The software vendor had just reported revenue and revenue errors, but no one was paying attention to it.

Wall Street focused on the massive growth trajectory the company is currently seeing thanks to Oracle’s future-looking figures, its booming cloud infrastructure business and many new artificial intelligence transactions.

“There is no better evidence of earthquake changes occurring in computing.

Analysts often find themselves celebrating companies with revenue calls, as results beat expectations and forecasts are particularly impressive. Executives are used to celebrating a good quarter.

However, the latest Oracle Calls were different and investors knew why.

Based on post-market movements, Oracle’s shares are poised to surge more than their single session on Wednesday since the 1999 Dot-Com Boom. The stock is trading at $310 and is set to expand the Zoom beyond the $256.43 hit last month. Oracle’s market capitalization jumps up and down to over $870 billion.

Excitement is primarily around cloud infrastructure, where Oracle competes Amazon, Microsoft and Google. Oracle said this fiscal year for its business will jump from 77% to $18 billion from $10 billion last year.

In 2027, this figure almost doubled to $32 billion, reaching $73 billion, $114 billion and $144 billion over the next three years.

CEO Safra Catz said in a revenue statement that the company signed multi-billion dollar contracts with three different customers in the quarter. Openai said in the quarter it agreed to develop a 4.5 gigawatt data center capacity with Oracle.

Oracle’s remaining performance obligations are a measure of contract revenue that is not yet recognized, surged to $455 billion, an increase of 359% year-on-year.

Wood from TD Cowen said the RPO figures were “really amazing to see.” He asked the Cats to be more clear about how much it costs the company to build the infrastructure needed to serve those customers.

Catz said that the difference between Oracle and its rivals is how it handles properties that house the data center.

“We know some of our competitors. They like to own the building,” she said. “It’s not really our specialty. Our specialty is unique technology, unique networking, storage. It’s a way to bring these systems together in one place.”

In an interview with CNBC’s “Fast Money” after the report, Da Davidson analyst Gil Luria called Oracle’s predicted cloud revenue figures “absolutely astounding,” and said it represents a 10-fold increase over the next five years.

But he was also paying attention. He said big hyperscalers like Microsoft and Google have enacted a strategy of “offloading capabilities to other data center providers.” It leads the business using Oracle.

“These are not organic customers for Oracle,” said Luria, who recommends holding the stock. “This is a Microsoft, Google and Amazon customer and uses Oracle Capacity.”

Heading towards Tuesday’s report, Oracle’s shares rose 46% per year, with Nasdaq winning 13%.

Watch: Luria on Oracle’s “amazing” numbers