Oracle shares jump 10% afterhours after strong results, guidance

Shares of Oracle Corp. gained as much as 10% in extended trading on Wall Street on Tuesday after it reported strong quarterly results and its guidance was ahead of street expectations.

The company's much watched infrastructure business saw revenue growth of 84% during the quarter compared to the same quarter last year. The $4.9 billion figure was ahead of analyst expectations of 79% growth and also higher than the 68% growth seen in the previous quarter.

For the next financial year, Oracle expects revenue to reach $90 billion, also ahead of analyst estimates of $86.7 billion.

Oracle shares were in the spotlight all through 2025 as its cloud business found success by providing chip-filled data centers and other equipment for training and deploying AI models. The company is currently working with customers like OpenAI and Meta to provide large-scale cloud infrastructure.

The success that Oracle has found recently has come at a cost, with capex rising to $18.6 billion this quarter, higher than the $14 billion projected by analysts. It maintained its full-year capex outgo at $50 billion. More than 90% of cloud capacity was provided to customers ahead of schedule, according to the company's co-CEO Clay Magouyrk.

Remaining performance obligations stood at $553 billion from $523 billion in the earlier quarter. The RPO is a measure of bookings and most of this increase came from large AI contracts, where customers fund the upfront purchase of semiconductors.

Oracle has also disclosed $1.6 billion in expected restructuring costs in the fiscal year through May, its largest such plan on record. Bloomberg had reported last week that the company is looking to cut thousands of jobs to trim costs.

Oracle shares ended 9% higher in extended trade but are still down nearly 50% from the peak that the stock had hit in September last year.

(With Inputs From Agencies)