Overview:

Oracle (NYSE: ORCL) shares surged nearly 40% this week after the company delivered a strong earnings report and boosted its forecast for cloud growth. The move highlights Oracle’s growing role in the AI boom and marked the company’s biggest one-day stock gain in decades.

Oracle Stock Surge

On September 10, 2025, Oracle stock (ORCL) skyrocketed almost 40%, its largest single-day gain since 1992. The rally came after Oracle announced it had signed several multi-billion-dollar AI cloud contracts and raised its annual growth forecast for Oracle Cloud Infrastructure from 70% to 77%.

The company also reported a massive increase in Remaining Performance Obligations (RPO), which rose 359% year-over-year to $455 billion, reflecting future contracted revenue.

Market Reaction

The surge in Oracle’s stock price added more than $100 billion to co-founder Larry Ellison’s fortune, officially making him the world’s 2nd richest person, behind Elon Musk.

The news also boosted confidence in the broader tech market, pushing the Nasdaq and S&P 500 higher on expectations that AI-related investments will continue driving growth across the industry.

Oracle Earnings Highlights

Total revenue: up 11% year-over-year to $15.9 billion
Cloud revenue (IaaS + SaaS): up 27%
IaaS growth: up 52%
RPO (contracted revenue): $455 billion as of August 31, 2025

CEO Safra Catz highlighted AI demand as the key driver of growth, saying Oracle’s infrastructure is becoming essential for companies and organizations building advanced AI systems.

Looking Ahead

Oracle’s strong quarter shows how deeply the company is embedding itself into the AI cloud market, competing with giants like Microsoft, Amazon, and Google. Analysts remain positive, with a “Buy” consensus rating and a 12-month price target of around $236 per share.

Sources

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