Oracle shares significantly increased in premarket trading Friday after the company reported strong fiscal first-quarter results, driven by soaring demand for cloud services and increased expansion of its data center capacity.
Oracle stocks increased after strong revenue growth
Oracle reported $19.35 billion in revenue for the quarter, up 30% from a year earlier and above analysts’ expectations of $19.14 billion. Net income rose $4.7 billion, in contrast to the $2.93 billion in the same period last year, marking a raise of 60%.
Cloud revenue significantly contributed to the growth, increasing 62% to $11.6 billion. Cloud infrastructure revenue rose 121%, while cloud application revenue rose 10%.
Moreover, Oracle delivered an extra 850 megawatts of data center capacity during the quarter and secured over $30 billion in new AI cloud contracts.
The company stated it had delivered more than 300,000 GPUs to AI cloud customers.
The company expects second-quarter revenue to increase between 30% and 34%, with cloud revenue projected to grow 64% to 70%. Oracle also expects fiscal 2027 revenue to reach at least $90 billion.
The strong results come as Oracle continues investing heavily in AI infrastructure. The company has taken on more than $100 billion in debt to finance its data center expansion and meet increasing demand from major customers, including Nvidia, Meta, OpenAI, AMD and xAI.
Oracle shares were last up around 6.2% in premarket trading, although the stock remained down more than 21% since the start of 2026.
Citi analysts maintained their Buy rating, calling the quarter solid and stating the results strengthened the outlook ahead of Oracle’s upcoming Investor Day.
