How One Line From Oracle’s Earnings Turned Suits Into Degens at a Roaring Kitty Rally (+31%)

Whenever your earnings report has Wall Street analysts blurting out “we’re kind of all in shock” in the aftermath… it usually means one of two things:

1. You just laid an egg so big it belongs in the Guinness Book of World Records, and investors are yeeting shares like they’re on fire.
    
2. Or… you revealed you made so much money, people start wondering if you’ve got a side hustle cooking meth with Jesse Pinkman.

For Oracle (+31%), it’s looking a lot like option two.

Larry Ellison’s database empire is set to pull off its biggest one-day gain since the dot-com boom (which later turned into a bubble, but we won’t talk about that). The big jaw-on-floor moment came when CEO Safra Catz flippantly lobbed the following grenade: “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.” What every analyst on this side of the Mississippi heard was: Oracle plans to turn a cloud business barely cracking $20B today into a $144B monster by 2030… numbers that would put it in striking distance of AWS and Azure.

Obviously, analysts on the call lost their minds. Guggenheim’s John DiFucci said he was “blown away.” Deutsche Bank’s Brad Zelnick admitted, “We’re all kind of in shock, in a very good way.” TD Cowen’s Derrick Wood called it “momentous.” These guys don’t usually sound like they just spotted Chris Martin at the Coldplay merch stand, but Oracle’s forward guidance had them acting like superfans.

(Source: Yahoo Finance)

And you can’t really blame them. The company’s contract backlog ballooned 359% to $455 billion and Catz hinted it’ll soon top half a trillion. Oracle signed four multi-billion-dollar deals last quarter with the likes of OpenAI, Meta, and Elon’s xAI. The company is also tangled up in the $500 billion Stargate AI project alongside SoftBank and OpenAI, though nobody’s spilling all the details yet. 

Add to that an aggressive spending plan (capital expenditures are expected to hit $35 billion in 2026 compared to just $21 billion last year) and Oracle looks like it’s playing Wall Street on “Easy Mode.” Sure, Microsoft, Amazon, and Google still dominate cloud market share, but with GPUs this scarce, Oracle is the guy in the desert holding the last case of bottled water.

Funny enough, Oracle technically flubbed the quarter. Revenue came in at $14.9 billion, just shy of the $15 billion estimate, and EPS was $1.47 compared to the expected $1.48. But when you throw a $144 billion revenue projection on the table, no one’s sweating a penny miss. Investors shoved all the chips in, and Oracle’s market cap is now brushing up against the trillion-dollar club. Pretty impressive for a guy like Larry Ellison who has to be what, 150 by now? And yeah, today’s a historic day for folks over in Oracle HQ, but let’s see if they can actually back up all this bark.

At the time of publishing this article, Stocks.News holds positions in Meta, Microsoft, Amazon, and Google as mentioned in the article.