Oracle shares experienced a staggering after-hours rally of over 28% on Tuesday amid positive sentiment from investors as the company projected that its AI-powered cloud segment would generate $144 billion in annual revenue by fiscal 2030. This marks a more than sevenfold jump from current year projections of less than $20 billion.
“We expect Oracle Cloud Infrastructure revenue to grow 77% to $18 billion this fiscal year — and then increase to $32 billion, $73 billion, $114 billion, and $144 billion over the subsequent four years,” said CEO Safra Catz in a statement.
“We signed four multibillion-dollar contracts with three different customers in Q1,” added the CEO. “We have signed significant cloud contracts with the who’s who of AI, including OpenAI, xAI, Meta, and many others.”
The surge added to Oracle’s impressive performance in 2025, with the stock already advancing 45% so far.
The outsized move came in spite of lackluster quarterly results. For the first quarter of its fiscal 2026, Oracle’s revenue landed at $14.9 billion, just shy of the $15 billion analysts surveyed by Bloomberg had forecast. Earnings per share, after adjustments, reached $1.47, a penny short of Wall Street’s $1.48 estimate.
Investors were bolstered by the company’s aggressive revenue target and a sizable increase in Oracle’s remaining performance obligation (RPO), an indicator of future contracted revenue. Oracle attributed its bullish long-term guidance to intensifying enterprise demand for its AI-infused cloud products.
Meanwhile, co-founder Larry Ellison reaped the benefits of Oracle’s rally, with his net worth surging by $70 billion to $364 billion, according to the Bloomberg Billionaires Index. That historic jump puts Ellison closer than ever to overtaking Elon Musk, whose wealth currently stands at $384 billion. Should Oracle’s stock gains persist when markets open Wednesday, Ellison could potentially secure the largest single-day wealth increase ever seen in the index.
