TMTPOST -- Oracel   Corporation   stocks   rallied   13.3%   to notch a record   high   close of $199.86   on   Thursday. Stocks logged their   best day in   three-and-a-half years   after the software   behemoth reported earnings   beat   and   signaled stronger cloud growth outlook driven   by artficial intelligence ( AI )   demand.

Credit：IDC

Both of Oracle ’ s top   and bottom lines   for   its fourth fiscal quarter   ended May 31   beat Wall   Street expectation.   Revenue jumped 11%   year-over-year ( YoY ) to   $15.9   billion,   compared with   analysts   estimated $15.6 billion polled by FactSet. Adjusted earnings   per   share   ( EPS )   rose   more than 4%   YoY   to   $1.70, surpassing analysts ’   forecast of   $1.64 per   share.  

Oracle   Cloud Infrastructure   ( OCI )   generated   $3.0 billion   for the May-ended quarter with   a YoY rise of 52%. Sales of the closely-watched   business accelerated   from   an increase   of   49% for the previous   quarter. OCI is a key part   of   Oracle ’ s push to be an   AI leader   as it provides   cloud-computing   services to businesses, competing against cloud giants   like Amazon.com, Inc.   and Microsoft   Corp.  

Calling OCI revenue growth rates and demand "skyrocketing", Oracle Chairman and Chief Technology Officer ( CTO ) Larry Ellison said the overall OCI consumption revenue grew 62% for the fiscal fourth quarter, and the company expected the OCI consumption revenue to grow even faster in the fiscal year 2026.

Remaining performance obligations   ( RPO ) , a measurement of money that ’ s expected to be recognized as revenue in the future, jumped 41% YoY to   $138   billion.   Oracle   raised   its guidance for the current fiscal year and management attributed it to AI   demand.  

Capital expenditures ( CapEx ) for the 2025 fiscal year surpassed $21 billion, compared with less than $7 billion for the preceding fiscal year. The tally for the new fiscal year should be above $25 billion, Orcale CEO Safra Catz said.

Catz said on an earnings conference that revenue for the fiscal   year   2026, which ends in May 2026,   is expected to hit "at least $67   billion", up   from   the prior guidance   of $66   billion,   whereas LSEG ’ s   consensus projection stood   at $65.18   billion. "What is clear is that more customers will use the Oracle database to leverage AI,"   Catz told analysts.

Catz in a statement   disclosed Oracle projected its total   cloud growth rate--applications plus infrastructure — will increase from 24%   in fiscal year 25 to   over 40% to the   fiscal year   2026.   "Cloud Infrastructure growth rate is expected to increase from 50% in FY25 to over 70% in FY26. And RPO is likely to grow more than 100% in FY26. Oracle is well on its way to being not only the world's largest cloud application company — but also one of the world's largest cloud infrastructure companies,"   said Catz.  

Catz said RPO will   likely more than double in   the   fiscal year 2026,   and three year later, revenue for the fiscal year   2029   should   be above the $104   billion target Oracle set in September.   

It   is notable that   gains from   OpenAI ’ s Stargate   AI   project   are   not   included in Oracle ’ s forecast.   "If Stargate turns out to be, everything is advertised, then we ’ ve understated our RPO growth," Ellison said.

Wall Street analysts seemed impressed by Oracle ’ s   guidance for   the   new fiscal   year, and believed its spending forecast and business commitments suggest more momentum ahead.  

Evercore ISI analyst Kirk Materne noted   Oracle now expects more than 40% growth in cloud revenue for the 2026 fiscal   year, versus the 24% growth rate seen in the past   fiscal year. The company looks "extremely well positioned to continue to benefit from the rapid increase in demand for AI and [ generative AI ] services," he commented.

Bernstein   analyst   Mark Moerdler felt that Oracle "sounded more bullish than ever for FY27 and beyond." The company saw RPO   rise 41% from a year before. Meanwhile, its capital-expenditure forecast for more than $25 billion in spending this fiscal year could be a positive signal around revenue potential. Moerdler   wrote in a note that   from these trends   one can see where Oracle ’ s confidence is from.   He also pointed out   the company has   benefited a lot from sovereign AI,   which   is when countries   look to build out their AI infrastructure.