{"id":597289,"date":"2026-09-11T16:54:12","date_gmt":"2026-09-11T16:54:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/597289\/"},"modified":"2026-09-11T16:54:12","modified_gmt":"2026-09-11T16:54:12","slug":"oracle-stock-trims-gains-as-ai-cloud-demand-outpaces-supply","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/597289\/","title":{"rendered":"Oracle stock trims gains as AI cloud demand outpaces supply"},"content":{"rendered":"\n

What happened: Oracle (ORCL<\/a>) trimmed gains after popping more than 2% on Friday. <\/p>\n

What’s behind the move: The database software company posted strong revenue and earnings for its first quarter of fiscal year 2027. <\/p>\n

The company, which has been building out data centers for customers like OpenAI (OPENAI.PVT<\/a>), said its total quarterly revenue grew 30% to $19.3 billion versus $19.13 billion expected by Wall Street. The top-line result was driven largely by a 121% jump in cloud infrastructure sales of $7.4 billion. <\/p>\n

Adjusted earnings per share also rose 30% to $1.92 versus $1.75 expected by Wall Street. <\/p>\n

“Customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply,” said the company in its earnings release. <\/p>\n

Oracle booked more than $30 billion of additional AI cloud contracts in the first quarter, increasing its remaining performance obligations, which include its backlog, to $664 billion. <\/p>\n

“The numbers look really strong; it’s far exceeding their guidance,” said Epistrophy Capital Research chief market strategist Cory Johnson, who is also an Oracle shareholder. “I think what you see is kind of out of nowhere, a dominant builder of data centers and a trusted partner to the biggest firms in AI,” he said. <\/p>\n

“We’re getting to a point with Oracle where they’re turning the keys over to the users,” he added. “And when they turn the keys over to the users, then you’ll have a moment where the OpenAIs of the world then actually have to turn over billions of dollars to Oracle.” <\/p>\n

What else you need to know: Oracle shares have struggled this year due to the cloud provider’s massive debt load taken on to build out artificial intelligence infrastructure. <\/p>\n

The company’s quarterly release was expected to give Wall Street a read on the health of the AI trade as the company reports its earnings and free cash flow. <\/p>\n

The stock hit a record high about a year ago but has since lost more than half its value due to concerns about its debt load. <\/p>\n

The stock gain up early morning gains throughout the sesssion. Even though it has rallied more than 30% since hitting a yearly low in July, it was still down more than 20% year to date. <\/p>\n

Ines Ferre is a senior business reporter for Yahoo Finance. <\/p>\n

Click here for in-depth analysis of the latest stock market news and events moving stock prices<\/a> <\/p>\n

Read the latest financial and business news from Yahoo Finance<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"What happened: Oracle (ORCL) trimmed gains after popping more than 2% on Friday. What’s behind the move: The…\n","protected":false},"author":2,"featured_media":597290,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,15003,294326,8558,111,139,69,114587,27133,145,4233],"class_list":["post-597289","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-cloud-infrastructure","tag-cory-johnson","tag-data-centers","tag-new-zealand","tag-newzealand","tag-nz","tag-quarterly-revenue","tag-software-company","tag-technology","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/597289","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=597289"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/597289\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/597290"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=597289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=597289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=597289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}