Oracle Shares Surge Most Since 1992, Defying Growth Projection Predictions

Oracle Corporation, a company known for its database and cloud computing solutions, has seen the price of its shares surge by 36%, setting the company up for a historic gain.

The surge comes after the company’s cloud demand numbers posted an all-time high and had its best day since 1992. The rally raised Oracle’s market cap from $678.4 billion at Tuesday’s closing share price to around $957 billion as of Wednesday.

Following Oracle’s earnings call on Tuesday, analysts who have been covering the company’s stock were blown away and were in shock by the numbers. Wall Street was floored. The earnings call turned into a chorus of disbelief, with analysts admitting they were caught off guard by the scale.

Here Are Some Analysts’ reactions;

• Derrick Wood, a Managing Director and Senior Equity Research Analyst at TD Cowen said, “The RPO figure is just really amazing to see. We’re all kind of in shock, in a very good way.” He hiked his price target, citing the “seismic shift” in AI computing.
• Guggenheim’s John DiFucci: “I’m sort of blown away. Momentous quarter.” He emphasized the multi-billion-dollar deals as proof of Oracle’s AI infrastructure dominance.
• Deutsche Bank’s Brad Zelnick echoed the shock, calling the backlog “unprecedented” and upgrading his rating on the back of 20%+ CAGR projections through FY2029.
• D.A. Davidson’s analyst Gil Luria in an interview with CNBC’s “Fast Money” after the report, called Oracle’s projected cloud revenue figure absolutely staggering”, and said it represents a tenfold increase in the next five years.
• Morgan Stanley: Pre-earnings, they upped their target citing >20% CAGR from AI deals; post-earnings, they called it a “validation” of Oracle’s pivot from legacy software to AI powerhouse.

Oracle CEO Ellison’s Wealth Surges

Oracle co-founder and Chairman Larry Ellison experienced the largest single-day wealth increase ever recorded, surging $101 billion to reach $393 billion, edging out Elon Musk’s $385 billion and claiming the title of world’s richest person for the first time.

This dramatic shift was triggered by Oracle’s explosive Q1 FY2026 earnings report, which highlighted massive AI-driven cloud growth: total cloud revenue up 28% YoY to $7.2 billion, infrastructure revenue soaring 55% to $3.3 billion, and a jaw-dropping $455 billion in remaining performance obligations (up 359% YoY).

Forbes notes Ellison’s total wealth now exceeds $400 billion in some estimates, marking him as only the second person (after Musk) to hit that milestone. Yet, as one Bloomberg analyst quipped, “These rankings change faster than a Tesla acceleration” with Musk’s proposed $900 billion pay package potentially catapulting him toward trillionaire status if Tesla hits $8.5 trillion market cap.

Oracle’s Strategic Positioning in AI AI-Driven Era

Following Oracle’s earnings call on Tuesday, the company unveiled four multi-billion-dollar contracts, amid an industry-wide shift, led by companies such as OpenAI and xAI, to aggressively spend to secure the massive computing capacity needed to stay ahead in the AI race.

Separately, the Wall Street Journal reported on Wednesday that OpenAI has signed a contract to purchase $300 billion in computing power from Oracle over roughly five years, marking one of the biggest cloud contracts ever signed.

A majority of the new revenue Oracle described on Tuesday will come from the OpenAI deal, the report said.

Oracle projects $144 billion in cloud revenue by 2030, boosts capex 65% to $35 billion. CEO Safra Catz said in the earnings statement that the company signed four multibillion-dollar contracts with three different customers in the quarter.

Oracle’s explosive Q1 FY2026 earnings, offer a clear lens into how companies are capitalizing on the AI boom. Firms leveraging AI infrastructure are reaping massive rewards as demand for generative AI and large language models (LLMs) skyrockets.

Oracle’s pivot from legacy database software to a leading AI cloud provider underscores the massive opportunity in AI infrastructure. Its cloud revenue ($7.2 billion, +28% YoY) and multi-cloud database deals (up 1,529% YoY) with hyperscalers like AWS, Azure, and Google show that companies building scalable, high-performance compute and storage solutions for AI workloads are capturing outsized market share.

Future Outlook

Businesses prioritizing inference optimization through specialized databases or hardware are carving out a lucrative niche as enterprises deploy AI at scale.

This focus reflects a maturing AI market where inference (real-time application) is overtaking training (model development) as the bottleneck. Companies like Oracle, which optimize for low-cost, high-speed inference, are gaining traction over pure-play training providers.