Remember when Oracle was just that boring database company your IT department complained about? Well, those days are officially over. The cloud computing giant just delivered earnings that had Wall Street analysts literally saying they were “in shock” – and not the bad kind.
Oracle’s stock absolutely exploded 42% after their Q1 earnings call, rocketing to over $343 per share. To put that in perspective, founder Larry Ellison made about $110 billion in a single day. That’s “buy a small country” money, folks.
The Numbers That Broke Brains
Here’s the thing – Oracle’s actual Q1 results were pretty meh. Revenue of $14.9 billion missed estimates, and earnings per share came in slightly below expectations. So why did the stock go absolutely bonkers?
Two words: future projections. And boy, are they spicy.
Oracle’s cloud infrastructure revenue is expected to grow 77% to $18 billion in fiscal 2026. But wait, there’s more! They’re projecting it will nearly double to $32 billion in 2027, then more than double again to $73 billion in 2028. By 2030? They’re talking $144 billion. That’s a 700% increase over their 2026 projections.
As one analyst put it: “Listen, even I am sort of blown away by what this looks like going forward.” When you’ve got seasoned Wall Street pros admitting they’re “blown away,” you know something big is happening.
The Secret Sauce: Multi-Cloud Magic
Oracle’s secret weapon isn’t just cloud computing – it’s multi-cloud computing. Think of it like being the Switzerland of cloud services. Instead of forcing customers to pick sides between Amazon, Microsoft, or Google, Oracle plays nice with everyone.
Their multi-cloud revenue skyrocketed over 1,500% year-over-year. That’s not a typo. Fifteen. Hundred. Percent.
CEO Safra Katz dropped the bombshell that they signed four multi-billion-dollar contracts with three different customers in just one quarter. Their contract backlog – basically guaranteed future revenue – jumped 359% to $455 billion. And they’re expecting to hit $500 billion soon.
The Reality Check
Now, before you mortgage your house to buy Oracle stock, let’s pump the brakes. The stock is already up 95% year-to-date and trading at a forward P/E of 35. That’s not exactly bargain-basement pricing.
But here’s what’s wild: analysts are still raising their price targets. Cantor Fitzgerald bumped theirs to $400, while TD Cowen went to $375. That suggests another 15-23% upside from current levels.
The bottom line? Oracle just proved that in the AI and cloud computing arms race, being the neutral party that works with everyone might be the smartest strategy of all. Sometimes the best way to win the game is to sell shovels to all the gold miners.
Whether this momentum continues remains to be seen, but one thing’s for sure – Oracle isn’t your grandfather’s database company anymore.