Oracle Shares Skyrocket: What’s Fueling the Massive Surge?

Oracle stock just ripped through all-time highs—leaving Wall Street scrambling to explain the explosive momentum.

Cloud Dominance Pays Off

Oracle's aggressive cloud infrastructure expansion finally hits profitability. Enterprise clients flock to its integrated AI and data solutions—ditching costlier competitors without blinking.

AI Deal Flow Goes Berserk

Massive government and corporate contracts pour in. Oracle secures billion-dollar deals for sovereign cloud systems and generative AI deployments—outpacing every legacy tech player.

Short Squeeze Turbocharges Rally

Hedge funds caught offside fuel the fire. Oracle’s relentless beat-and-raise quarters leave skeptics with nowhere to hide—classic Wall Street miscalculation.

Oracle proves old dogs can learn new cloud tricks—while short-sellers learn the same painful lesson yet again. Some things never change in finance.

A burgeoning backlog

But it wasn't the revenue or earnings results that sent the stock skyward. In fact, quarterly revenue of $14.9 billion was up 12% from a year ago but still slightly below Wall Street's expectations of $15 billion. And earnings per share of $1.47, up 6% from last year, came in a penny below expectations.

All that mattered little. It's the backlog of business that stunned the market and sent the share price soaring.

Oracle said it expects revenue from its cloud infrastructure unit to surge 77% this year, to $18 billion. It also posted a huge surge in bookings in the latest quarter and signed four multibillion-dollar contracts with three different customers in the quarter.

The company's remaining performance obligations -- expected future revenue from signed contracts that has not yet been collected -- surged during the quarter to $455 billion, a jump of 359%.

If that's not the future, I'm not sure what is.

Multibillion-dollar customers

"Clearly, it was an excellent quarter and demand for Oracle Cloud infrastructure continues to build," CEO Safra Katz said on the Sept. 9 earnings call. "I expect we will sign additional multibillion-dollar customers."

CEOs often speak in hyperbole on earnings calls. But in this case Katz's language seemed subdued, if anything. Multicloud-based revenue from,, andsoared more than 1,500% in the quarter.

Oracle Chairman and Silicon Valley legend Larry Ellison said the company expects to deliver another 37 data centers to these three tech giants over the next few years, taking the total to 71.

Image source: Getty Images.

Pure gold

By the way, due to Oracle's incredible run-up, Ellison's fortune soared $90 billion to more than $380 billion, putting him right behind the world's richest person, Elon Musk.

To incentivize his sales force, Ellison once paid bonuses in Gold coins. He wanted to reward ruthlessness and drive competitors out of business.

It worked, as several early competitors -- Sybase and Informix are a couple of them -- stagnated or were swallowed up by other companies.

Ellison no longer pays bonuses in gold. But Oracle is certainly a golden stock for its shareholders.