Oracle Shares Rise as AI Cloud Backlog Beats Estimates
Oracle said $664 billion in contracted work and $19.3 billion in quarterly revenue eased investor worries about its debt-fueled data center spending.
- On Friday, Oracle shares climbed over 4 percent in after-hours trading as the cloud computing firm's stronger-than-expected quarterly results eased investor fears about its massive debt-driven spending spree.
- Revenue reached $19.3bn, up 30 percent, while the total backlog grew to $664bn; however, new contract growth slowed significantly compared to the previous year's $138bn quarterly increase.
- Oracle reported cloud infrastructure utilization at 97.9 percent utilization, with the company spending $28bn on construction and equipment in a single quarter to build required capacity.
- To fund capital projects, the company sold $20bn of new shares and relies heavily on OpenAI, which has committed around $300bn to Oracle's cloud infrastructure.
- Shareholders look to Oracle's World conference in Las Vegas on October 28 for long-term plans, as the firm faces questions about future capital raises and customer concentration risk.
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Watch Oracle’s AI Cloud Growth Eases Buildout Concerns
Oracle’s latest results helped ease concerns around its massive AI infrastructure buildout, with cloud infrastructure revenue growing 120% and the company bringing roughly 850 megawatts of new capacity online. BNP Paribas Global Head of Software Research Stefan Slowinski sees a more constructive setup as Oracle moves toward positive free cash flow, but says its upcoming Financial Analyst Day will be key for understanding the returns and the financing behind its AI expansion. He joins Ed Ludlow on "Bloomberg Tech."
Oracle Surges 7% as AI Cloud Backlog Hits $664B, CoreWeave and Nebius Climb 4%
Oracle just posted a backlog figure large enough to reshape how the entire AI cloud infrastructure trade gets valued, and two GPU cloud pure-plays are already moving in sympathy before the broader market has fully processed what it means.
Oracle climbs as AI-fuelled backlog growth deflects spending worries
Oracle shares rose 6 per cent before the bell on Friday after it reported a US$26 billion jump in first-quarter revenue backlog, proving its massive debt-driven spending spree on data centers was powering strong growth in its cloud business.
Oracle is spending more on building data centres than it earns in a quarter
Oracle told investors this week that it is sitting on $664bn of work it has agreed to do and has not yet done. Accountants call this remaining performance obligations, which is a dense way of saying that customers have signed contracts, the money is promised, and Oracle now has to go and build the thing […] This story continues at The Next Web
Oracle earnings show slower cash burn as AI spending starts to pay off; stock jumps 4% after market
Oracle’s latest earnings offered investors relief as stronger-than-expected revenue and a smaller cash burn eased concerns over its heavy AI spending. The company’s revenue backlog surged to $664 billion, while customer prepayments helped fund capital expenditure. Oracle shares rose 4% after market as investors gained confidence in its AI growth strategy.
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