Oracle Surges to Record Highs on Multi-Billion AI Contracts
Oracle Corp. stunned Wall Street on Wednesday as its shares soared by as much as 43% after announcing several billion-dollar contracts that showcase the company’s deeper involvement in the booming artificial intelligence (AI) sector. The database software giant closed the day up nearly 36% at $328.33, marking a new all-time high and its biggest single-day gain since December 1992.
The surge was fueled by revelations from CEO Safra Catz that Oracle signed four multibillion-dollar contracts with three major customers in the latest quarter, ending August 31. These deals pushed Oracle’s outstanding contract revenue — or remaining performance obligations — to a staggering $455 billion, more than quadrupling compared to the same period last year. Catz further projected that additional contracts expected in the coming months could lift this backlog to over $500 billion.
“It was an astonishing quarter — and demand for Oracle Cloud Infrastructure continues to build,” Catz told analysts and investors.
The unprecedented growth comes as Oracle capitalizes on AI-related opportunities, particularly through its partnership with SoftBank and OpenAI on the $500 billion Stargate data-center venture. Other major clients driving this momentum include Elon Musk’s xAI, Meta Platforms, and Nvidia, underscoring Oracle’s strengthening foothold in the AI ecosystem.
Oracle’s resurgence is especially striking given its slow start in cloud adoption over the past decade. Now, the company’s cloud services are viewed as highly attractive to AI developers such as OpenAI, and its cross-cloud partnerships with Microsoft, Google, and Amazon have widened its reach. Analysts at Melius noted that Oracle’s $455 billion backlog significantly de-risks its growth trajectory, ensuring strong revenue visibility through 2026 and beyond.
The stock rally added more than $100 billion to co-founder and CTO Larry Ellison’s net worth, bringing him within striking distance of Elon Musk, the world’s richest individual.
While Oracle’s fiscal first-quarter revenue climbed 12% to $14.93 billion, it fell short of analyst estimates of $15.04 billion. However, the strength of its AI-driven contracts and long-term growth outlook overshadowed this shortfall, sending investor confidence soaring.
As Oracle repositions itself in the era of artificial intelligence, its newfound momentum suggests that the 48-year-old company is no longer just catching up in cloud computing — it is now racing ahead.