Oracle’s Cloud Soars 34% to $7.98B, Infrastructure Explodes 68% to $4.08B

Oracle just posted numbers that should make its competitors sweat. The legacy tech giant isn't just holding its ground—it's accelerating.

Cloud Revenue Hits Escape Velocity

The headline grabber is a 34% surge in cloud revenue, pushing the total to a staggering $7.98 billion. That's not just growth; it's a statement of intent in the brutally competitive cloud arena.

Infrastructure Goes Hyperdrive

Even more eye-popping is the performance of its infrastructure segment. It rocketed 68% to $4.08 billion, suggesting Oracle is successfully capturing enterprise demand for core computing power and storage, bypassing the slower, more consultative sales cycles of old.

The results cut through the market noise, proving that established players can still innovate—and monetize—at scale. It's the kind of quarter that gets analysts upgrading their models and short-sellers scrambling for cover. Of course, on Wall Street, today's growth story is just tomorrow's baseline expectation—and the beat goes on.

Investors question spending as data center build speeds up

Oracle built its cloud push on its old database base and then chased bigger names in modern computing. The current expansion is tied tightly to a large data center build meant to support AI workloads for OpenAI.

Major platform clients also include TikTok under ByteDance and Meta Platforms. These customers help explain the surge in infrastructure demand even as questions grow about the cost of keeping those sites running nonstop.

Spending pressure showed up clearly in the quarter. Capital expenditures reached about $13 billion, up from $8.5 billion in the prior period. Back in September, the company projected full-year capital spending of $35 billion. Analysts had modeled only $8.25 billion for the latest quarter, which widened the gap between expectations and what was actually spent. The higher outlay reflects land, power, hardware, and network commitments tied to multiple new locations leased to expand computing capacity. These sites are meant to meet AI demand that has not yet fully turned into recognized sales on books.

CEO Clay Magouyrk said, “Oracle is good at building and running high-performance and cost-efficient cloud data centers,” adding that automation lets more sites be built and operated at scale. The stock dropped five percent in extended trading after closing at $223.27 in New York. Shares are down about one-third since September 10, when excitement around the cloud unit pushed the company to a record high. This report was also the first since Safra Catz handed the chief executive role to Magouyrk and Mike Sicilia.

Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program