NextFin news, Oracle Corp. shares surged to a record high in extended trading on Tuesday in New York after the company posted a substantial increase in bookings and provided an aggressive outlook for its cloud infrastructure business, according to reports from Financial Post and Bloomberg.
The surge followed Oracle's announcement of a landmark deal with OpenAI for 4.5 gigawatts of data center capacity, enough energy to power millions of American homes. This deal, along with contracts with major customers such as ByteDance’s TikTok and Nvidia, contributed to Oracle's remaining performance obligations rising to US$455 billion at the end of the fiscal first quarter, up from about US$138 billion the previous quarter.
Oracle CEO Safra Catz stated on Tuesday that the quarter was "astonishing" and that demand for Oracle Cloud Infrastructure continues to build. The company signed four multibillion-dollar contracts with three different customers during the quarter and expects to sign several more in the coming months, potentially pushing bookings over US$500 billion.
Cloud infrastructure revenue increased 55 percent to US$3.3 billion in the first quarter, surpassing analyst expectations of 53 percent growth. Oracle projects its cloud infrastructure unit to expand 77 percent to US$18 billion in revenue this fiscal year and anticipates reaching US$144 billion in annual revenue by the fiscal year ending in May 2030.
Oracle's strong cloud outlook and the OpenAI deal have been key drivers behind the stock's 28.4 percent jump in extended trading to US$309.99 on Tuesday, marking a record high for the company.
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