Key highlights:
- The Oracle stock price has jumped by 7% during the pre-market hours of Friday
- The surge follows the Q1 earnings report, which revealed a 30% revenue growth
- The company remains confident about its future performance in the next quarter and fiscal 2027
The Oracle stock price has seen a fresh boost on Friday as the company delivered a strong quarterly performance driven by rapid cloud growth and growing demand for AI infrastructure. The shares surged by more than 7% in pre-market trading, reversing much of the previous session’s decline.
Oracle stock sees strong growth from AI and Cloud
Oracle has posted significant growth in the first quarter of 2026, with AI and cloud businesses becoming the major drivers. The Oracle Cloud Infrastructure (OCI) revenue surged 121% year over year to $7.4 billion in the quarter. At the same time, total cloud revenue climbed 62% to $11.61 billion.
In response to this remarkable performance, the Oracle stock price jumped on Friday. As per CoinCodex data, the ORCL shares surged by about 7% during the latest pre-trading hours, with the value marked at $161.84. This surge is particularly noteworthy as it has erased the losses of the previous session, where the shares closed at $152.94, with a 5.38% drop.
Oracle revenue surges as AI spending accelerates
According to the Q1 results revealed by Oracle, the company’s revenue has surged by about 30% year over year. Net income increased to $4.68 billion from the previous $2.93 billion. While cloud remained the biggest growth engine, total cloud revenue saw a hike of 62% to $11.6 billion.
It is worth noting that the company remains confident about its potential growth in the near future. The team expects the current momentum to continue into the second quarter. As per the company’s forecast, it will see a potential revenue growth of 34% in Q2. This strong performance and the bullish projection highlight the growing demand for Oracle’s cloud infrastructure as businesses continue to invest in AI.
At the same time, Oracle’s expansion is also putting pressure on its finances. The platform is investing heavily to build data centres and meet rising AI demand. As a result, capital spending surged to $28.5 billion from merely $8.5 billion last year. The company also holds around $125 billion in debt, with AI expansion becoming more expensive.
Strong fiscal 2027 outlook
Building on the latest performance, Oracle intends to maintain a longer-term growth vision. For fiscal 2027, the company eyes adjusted earnings of $8.10 per share and revenue of $90 billion. These figures are above the expectations of Wall Street, which were reportedly marked at $8.07 in earnings and $89.76 billion in revenue.
Meanwhile, Oracle has kept its full-year capital spending guidance unchanged. This shows that it remains committed to expanding its data center network to meet growing AI demand. At the same time, concerns about the company’s rising debt and heavy AI spending remain. Investors are also worried that a natural gas pipeline required for a New Mexico data centre was running behind schedule.
But Oracle’s Hilary Maxson stated, “Nothing that we know today would lead us to believe that New Mexico or any of our other sites are delayed relative to the schedules that we included, for example, in our fiscal ’27 outlook.”
Source:: Oracle Stock Jumps 7% as AI Boom Powers Strong Earnings Beat