The growth of Oracle's cloud computing business exceeded Wall Street expectations, showing that the company's huge investment in large-scale artificial intelligence data center projects is paying off. Its share price surged more than 6% after the market. Oracle released its earnings report after the market on Thursday. The much-publicized cloud infrastructure business surged 121% year-on-year to US$7.4 billion in revenue during the fiscal quarter, higher than analysts' average forecast of US$7.19 billion. Oracle is transforming from a traditional database software vendor to an AI computing power provider, and is building large data centers for customers such as OpenAI. The company's stock price plummeted 38% from the year-long high it hit on June 1 as investors previously worried about financing needs, rising component costs, and data center construction challenges. For the fiscal quarter ending August 31, Oracle's capital expenditure reached US$28.5 billion, mainly for data center equipment. Chief Financial Officer Hilary Maxson reiterated that capital expenditure for the fiscal year ending May 2027 is expected to be US$70 billion, in addition to US$20 billion to US$25 billion in advance payments for some parts. Oracle said it added more than 30 billion US dollars in AI cloud contracts in the last fiscal quarter, driving a further increase in remaining performance obligations representing future revenue.

The growth of Oracle's cloud computing business exceeded Wall Street expectations, showing that the company's huge investment in large-scale artificial intelligence data center projects is paying off. Its share price surged more than 6% after the market. Oracle released its earnings report after the market on Thursday. The much-publicized cloud infrastructure business surged 121% year-on-year to US$7.4 billion in revenue during the fiscal quarter, higher than analysts' average forecast of US$7.19 billion. Oracle is transforming from a traditional database software vendor to an AI computing power provider, and is building large data centers for customers such as OpenAI. The company's stock price plummeted 38% from the year-long high it hit on June 1 as investors previously worried about financing needs, rising component costs, and data center construction challenges. For the fiscal quarter ending August 31, Oracle's capital expenditure reached US$28.5 billion, mainly for data center equipment. Chief Financial Officer Hilary Maxson reiterated that capital expenditure for the fiscal year ending May 2027 is expected to be US$70 billion, in addition to US$20 billion to US$25 billion in advance payments for some parts. Oracle said it added more than 30 billion US dollars in AI cloud contracts in the last fiscal quarter, driving a further increase in remaining performance obligations representing future revenue.