Oracle Rises 6% to Record High as It Signs Cloud Services Deal Worth $30 Billion a Year
Oracle Corp. signed a cloud services deal that it expects to contribute more than $30 billion in annual revenue starting in the fiscal year 2028.
The contract was revealed in a regulatory filing Monday and didn’t name the customer. Revenue from Oracle’s namesake database that runs on other clouds continues to grow more than 100%, Chief Executive Officer Safra Catz is expected to say at an internal meeting, according to the filing.
Oracle shares jumped as much as 6% in premarket trading Monday in New York. They were up 26% this year through Friday’s close, hovering near an all-time high.
In recent years, Oracle has gained traction in the competitive market for renting out computing power over the internet, in part by targeting clients focused on artificial intelligence work. Earlier this year, the company announced a joint venture dubbed Stargate to provide OpenAI with massive sums of computing power. Oracle had previously said this deal wasn’t yet reflected in its financial statements or backlogged orders.
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