Oracle (ORCL) shares, amid missed earnings estimates, opened at a record high of 35%, marking its highest run up since 1992.
The multinational technology company reported their first quarterly earnings of 2025 missing analyst expectations $113 million in revenue and $0.01 in earnings. This is normally a cause for bad news however, a market value rally from $234 billion to $913 billion says otherwise.
“We signed four multi-billion dollar contracts with three different customers in Q1,” said Oracle CEO, Safra Catz. As a result, their remaining performance obligation (RPO) contract backlog increased by 359% reaching $455 billion.
In addition to a healthy demand in orders, Catz forecasted “Over the next few months, we expect to sign-up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars.” Catz also estimated revenues for data infrastructure to $18 billion revenue for the coming fiscal year and $144 billion in revenue by 2030.
Gil Luria, Head of Technology Research at D.A. Davidson, describes the report as, “Completely unprecedented and what got everybody excited today.”
Oracle chairman and CTO, Larry Ellison commented on the success of current partnerships saying, “MultiCloud database revenue from Amazon, Google and Microsoft grew at the incredible rate of 1,529% in Q1.” Analysts have also noted Oracle’s unique edge in that, “[Oracle] isn’t developing its own LLMs.” This can incentivize growing AI firms to partner with Oracle because, “you want to partner with the guy who’s not going to compete with you,” Luria says.
In addition to current partnerships, the Wall Street Journal released an exclusive report that OpenAI and Oracle signed a five year $300 billion cloud deal. OpenAI was also valued at $500 billion, securing Oracle a partnership with the second most valuable private company in the world. Contract is set to start in 2027.
This surge in stock price has also led Ellison to overtake Elon Musk as richest man in the world with a net worth nearing $400 billion.
Writer and market analyst Ed Elson said the future looks bright for Oracle investors. “The fourth horseman of AI has arrived, and it is Oracle hot on the tail of the three largest cloud providers in the world.”
Calvin Huang 